Daily_Nifty_VP's View-11/09/12

LEADER POST for Tuesday (11/09/12)

1.         The supports are at about 5358/56, 5348, 5342, 5272, 5226 and 5217. Resistances are at about 5368, 5372/74 and 5425 while other previous levels to watch are 5399 and 5449. The +WWs with higher targets are not mentioned as of now. Three likely -WWs give about 5332 (once below 5349) and 5322/5308 (once below 5345) (-WWs with lower levels are not mentioned presently).

While nifty spot closed slightly +ve, nifty future closed slightly -ve. But, though nifty spot just managed to cross the level of 5374 mentioned in the thread for Monday, it could not close above it. The period till 12/13th Sept looks turbulent. I feel a revisit to Friday's low is not ruled out. In the short term, unless nifty closes below 5307NS/5324NF, the trend is up. At the same time, a close above 5374NS/5405NF is a must now for continuation of further upmove.

An important aspect to note is that Monday's candle is an imperfect "evening doji star", which is a sign of trend reversal. Hence, Tuesday's candle should be Red and should preferably open below 5358.70 and also close near or below 5343 to confirm the trend reversal. The narrow range of Monday is in indication that a BD/BO is imminent.

2.         PCR at 0.96 and VIX at 15.27. Pre-open high/low at 5363.45/5263.90 and close at 5336.10. The 10tf candle is a hammer and indicates flat to mildly +ve market.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5355NF TARGET 5319 SL 5385. However, the chart data is different after a long time and hence alternate levels are SELL ABOVE 5339NF TARGET 5319 SL 5369. It is better to take the latter being safer.

4.         A +ww gives 5375NS.

5.         +ww target met. SL triggered. Target of reversed trade of 5400 also almost met.

6.         Nifty opened down with a small gap and remained flat for over an hour before making its upmove. It made a higher high and a lower low than that on Monday and closed +ve and also above Monday's close, as hinted by the pre-open candle, thereby probably nullifying bearish signal given by Monday's imperfect evening doji star. The SL of 9.30 strategy trade was triggered and the target of the reverse trade was met. The target of first -ww mentioned in the first post was almost met so was the target of a +ww identified during the day. Nifty closed almost at day's high.

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