Daily_Nifty_VP's View-07/09/12

LEADER POST for Friday (07/09/12)

1.         The supports are at about 5233, 5222/20, 5210, 5202, 5180 and 5147. Resistances are at about 5251/53/57, 5268 and 5291 while other previous levels to watch are 5277, 5296 and 5332. Two likely +WWs give about 5350 (once above 5245) and 5359 (once above 5270) (+WWs with higher targets are not mentioned). A likely -ww gives about 5228 (-WWs with lower levels are not mentioned presently). An inverted flag gives lower level unless killed above about 5250.

Although nifty closed +ve on Thursday, its likely direction still seems to be a bit down considering that it closed below the psychological level of 5250 on two consecutive days. Wednesday's low is beckoning for a revisit and the long time resistance zone of 5170-90 is not far away. Much lower levels are possible if global and domestic news becomes worse. On the upper side, a daily close above 5260, 5291 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 Friday may be +ve but a revisit to Wednesday's low of about 5215 or even slightly lower levels is not ruled out.

2.         PCR at 0.94 and VIX at 16.98. Pre-open high/low at 5736.90/5238.40 and close at 5309.45. This is the highest pre-open in a long time. This may indicate a flat to -ve market after a big gap up opening.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5342.50NF TARGET 5370/87 SL 5312.50.

4.         A number of -WWs give about 5320, 5317 and 5280 but I can't say when they will come.

5.         First -ww target met. Second -ww target met.

6.         NF is above R2 only and I feel it has scope to go to R3.

7.         Nifty opened up with a big gap taking cue from global markets and continued to inch up, finally closing +ve and well above Thursday's close. The target of first +ww mentioned in the first post was almost met. However, the target of 9.30 strategy trade was missed by a small margin. The targets of two -WWs identified during the day were also met.

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