Daily_Nifty_VP's View-12/09/12

LEADER POST for Wednesday (12/09/12)

1.         The supports are at about 5383, 5373, 5363, 5345 and 5306. Resistances are at about 5396/97, 5409 and 5490 while other previous levels to watch are 5399 and 5449. The +WWs with higher targets are not mentioned as of now. Four likely -WWs give about 5369/59/53/38 (-WWs with lower levels are not mentioned presently). An apparent rising wedge gives 5362/5334 in case of a BD. Also, the bottom of two channels in which nifty is hovering, is about 5362/5345 and a revisit there is not ruled out.

Although nifty opened gap down on Tuesday, it closed +ve strongly, nullifying the bearish sentiment created by Monday's candle. Also, it finally closed above 5374NS/5405NF and now appears ready for a big upmove. However, fundamentals being very bad, caution is advised in trading since a fall from present level is not ruled. In the short term, unless nifty closes below 5307NS/5324NF, the trend is up. The narrow range of Monday seems to have given a BO as of now.

2.         PCR up at 1.01 VIX at 15.38. Pre-open high/low at 5404.95/5331.10 and close at 5404.45. The 10tf candle is a hanging man and indicates flat to negative market.

3.         Pre-open high/low at 5404.95/5331.10 and close at 5404.45. The 10tf candle is a hanging man and indicates flat to negative market. If SL is hit buy below 5445NF target 5464/78 SL 5415.

4.         A flag may give 5334NF soon.

5.         SL of reverse long trade not hit yet. 5415 was appx. correct value is 5413.90. NF made a low of 5414.70 but SL may be hit due to volatility on account important event today in Germany.

6.         SL hit.

7.         A +ww gives about 5435/40NS while the flag now gives 5442NS.

8.         +ww target met as it was revised down to 5433.

9.         Nifty opened up with a gap taking cue to global markets but remained within a narrow range of about 23 points before making its crucial upmove. However, due to an important event in Germany, the volatility was so high that the SLs of 9.30 strategy calls (first, reverse and reverse again) were triggered. However, the targets of a bullish flag and a +ww identified during the day were met. In the end, the target of last 9.30 strategy was missed, probably due to paucity of time. It made a higher high and a higher low than that yesterday and closed +ve and also above yesterday's close.

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