LEADER
POST for Thursday (13/09/12)
1. The supports are at about 5414, 5408,
5399, 5361 and 5322. Resistances are at about 5438/40 and 5478/80 while other
previous level to watch is 5449. Two +WWs give about 5472 and 5500 (+WWs with
much higher targets are not mentioned as of now). Two likely -WWs give about
5350 (once below 5422) and 5345 (once below 5385) (-WWs with much lower levels
are not mentioned presently). An apparent rising wedge gives about 5334 in case
of a BD. A flag promises higher level unless killed below 5410.
Nifty opened gap up on Wednesday and closed +ve as
indicated by the bullish sentiment of Tuesday's candle. Also, it closed above
5400 and appears to be headed upwards. However, it did not close above 5252NF,
an important number as per one number theory and is yet to close above the
psychological level of 5450, above which only heavy short covering and buying
will come. Fundamentals being very bad, caution is advised in trading since a
fall from present level or slightly higher level is not ruled. Also, Friday
(Thursday night) and Monday are major event days and hence caution is advised.
In the short term, unless nifty closes below
5307NS/5324NF, the trend is up. The liquidity flow is massive and, as they say
"never fight liquidity".
2. PCR at
1.06 and VIX at 15.04. Pre-open high/low at
5467.10/5423.35 and close at 5435.20. This may indicate a flat to -ve nifty
today.
3. AS PER
9.30 STRATEGY, SELL ABOVE 5433NF TARGET 5409/5391 SL 5463.
4. Nifty
opened flat as expected, could not make a higher high than yesterday (though NF
did), made a higher low, remained in a narrow range of about 25 points and
finally closed flat, as was indicated by the pre-open data. The narrow range
was expected considering an important event (FOMC) due to unfold tonight in US.
With the result, neither the SL nor the target of 9.30 strategy were hit. The
day candle is once again an imperfect "evening doji star" implying a
possible reversal.
The
intraday chart of nifty spot values with 5 min candles is shown below.
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