Daily_Nifty_VP's View-23/08/12

LEADER POST for Thursday (23/08/12)

1.         The supports are at about 5412/09 and 5385 while other previous lows to watch are about 5346/30/09. Resistance is at 5436-40. A +ww gives much higher level but will be posted once nifty nears such a level. Two likely -WWs have been combined and give about 5332 (once below 5403) (-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 Wednesday and but could not close at a new high. However, the fact that it once again closed above 5400 indicates strong bullish tendency albeit a bit tired. But 5430-40 and 5480-5500 are stiff resistance zones. 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 continue to be high intraday in this week. Further upmove is likely next week.

2.         PCR sharply up at 1.30 and VIX 16.00. Low vix may suggest that only PEs are not being written predominantly.

3.         Pre-open high/low at 5426.20/5366.85 and close at 5426.15. This is a hammer in 10tf and may indicate a +ve market.

4.         AS PER 9.30 STRATEGY, BUY BELOW 5463NF TARGET 5484 SL 5433. I JUST FEEL SL MAY BE HIT AND THEN UPPER TARGET TOO. If SL is hit, target is 5403/ 5393 NF with SL 5456 but I feel it may not go below 5410/06 or 5397NS.

5.         A -ww gives 5432NS.

‎6.         -ww target revised to 5430NS. Inverted flag gives 5327.

‎7.         -ww target met. Inverted flag target met.

8.         SL of 9.30 strategy triggered.

9.         First target of reversed trade of 9.30 strategy met.

10.       As expected, nifty opened up with a small gap, marginally crossed resistance level and went to make a new high as suggested by the pre-open values. Later though it reacted, as European markets went down, to make a lower low than yesterday only to close -ve but above yesterday's close. However, it closed once again above 5400 keeping its bullish bias. The SL of 9.30 strategy trade was triggered but the target of reverse trade was met. Targets of a -ww and an inverted flag identified during the day were also met. Today's candle is a doji and hence either way movement possible tmrw.

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