Daily_Nifty_VP's View-22/08/12

LEADER POST for Wednesday (22/08/12)

1.         The supports are at about 5413, 5402, 5397/93, 5389/86/84 and 5364 while other previous lows to watch are about 5346/30/09 and 5294. Resistances are in a zone of about 5427-30. A +ww gives much higher level but will be posted once nifty nears such a level. Two likely -WWs gives about 5337 (once below 5406) and 5297 (once below 5361) (-WWs with lower targets are not mentioned). A huge likely bullish flag gives levels in excess of 5600 unless killed below about 5200.

Nifty made a new high on Tuesday and also closed at a new high above 5400 indicating strong bullish tendency. But 5430 and 5480-5500 is a stiff resistance zone. What's more, the -ve div persists on rsi on daily chart and I feel nifty may consolidate till a +ve div develops. Volatility will increase this week. Further upmove is likely next week.

2.         Pre-open high/low at 5421/5390.65 and close at 5395.75. It indicates likely negative trend with a gap down open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5411NF TARGET 5446/67 SL 5381.

4.         Target met.

5.         NS has crossed all resistance levels now time for a pause. NF has also crossed R2 level and has reached crucial number of 5454. So watch out.

6.         A bearish flag gives 5394NS unless killed above 5425.

7.         Nifty opened down with a gap, remained flat till afternoon and then went up to make a new high slightly above the resistance zone. However, it reacted later to close -ve and also below yesterday's close though not as -ve as indicated by the pre-open. The low was within the third support zone. The target of 9.30 strategy was met. The total range was about 38 points. The -ve div persists on daily chart.

The intraday chart of nifty spot values with 5 min candles is shown below.