Daily_Nifty_VP's View-06/09/12

LEADER POST for Thursday (06/09/12)

1.         The supports are at about 5213, 5206, 5189 and 5162. Resistance is at about 5250 while other previous levels to watch are 5296 and 5352. Two likely +WWs give about 5347 (once above 5248) and 5355 (once above 5300) (+WWs with higher targets are not mentioned). -WWs with lower levels are not mentioned presently. An inverted flag gives about 5200 unless killed above about 5241.

Nifty's likely direction still seems to be down. The long time resistance zone of 5170-90 is not far away and much lower levels are possible if global and domestic news becomes worse. On the upper side, a daily close above 5296 and then 5360 is a must to imply bullish trend. Liquidity is the only hope that will support market but seems to be scarce as of now. The period till 12/13th Sept looks turbulent with a -ve bias. I feel Thursday may be mildly +ve with revisit of Wednesday's low or lower levels may come later.

2.         Pre-open high/low at 5258.50/5176.45 and close at 5217.65. This may indicate a flat to +ve market. PCR at 0.90 and VIX at 17.01.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5255.50NF TARGET 5277/97 SL 5225.50.

4.         Nifty seems to be in a DT on the verge of a BO.

5.         (9.30 strategy) Target met.

6.         I think nifty is in a rising wedge and may fall to 5220 is breaks down.

7.         A -WW gives 5230NS not much away from 5220 of wedge BD.

8.         -ww target met.

9.         An inverted flag gives lower levels unless killed above 5250.

10.       Nifty opened down with a small gap as expected but remained flat till afternoon before making an upmove. It made a slightly higher high than yesterday but also made a lower low. It could not sustain at higher level and finally managed to close +ve and also above yesterday's close as indicated by the pre-open data. In the process, it met the target of 9.30 strategy's long trade.

A Descending Triangle (DT) identified during the day gave its target upon Break Out (BO). A -WW identified later also gave its target. The Break Down of a rising wedge (or channel depending upon how it is drawn) identified in the afternoon reached just 10 short of its target and may reach the target tmrw.

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