LEADER
POST for Monday (17/09/12)
1. The supports are at about 5568, 5561
and 5476. Resistances are at about 5588, 5594, 5602, 5619 and 5676. The next
higher reference level is 5631. A likely +ww gives about 5600 (+WWs with much
higher targets are not mentioned as of now). A likely -WW gives about 5537
(once below 5561) (-WWs with much lower levels are not mentioned presently).
The -ve divergence on daily chart of nifty mentioned in Friday's post has
vanished. However, it is approaching overbought zone.
Once again nifty opened up with a huge gap and
closed above previous high. Now it has to close above 5612NF, an important
number as per a number theory, to continue uptrend. Liquidity continues to
remain high. However, nifty is likely to react from 5600+ level (5631 was Feb
'12 high) as it tries to consolidate and discount any bad political
development. With major global news out of the way, nifty will now be left to
discount local news only.
2. PCR at
1.10 and VIX at 15.38. Pre-open high/low at
5802.25/5577.65 and close at 5631.75. The 10tf candle is an inverted hammer and
may indicate flat to -ve nifty after gap up open.
3. AS PER
9.30 STRATEGY, SELL ABOVE 5674.60 TARGET 5627.50 SL 5704.60.
Second target for this strategy is 5608NF.
4. First
target met.
5. Second target
met. I feel it is worth a chance to buy small around 5600NF with 5575NF as SL.
6. A +ww gives
about 5630NS.
7. +WW
target revised to 5646NS but only once above 5606.
8. A flag
give about 5631NS.
9. Flag
target was almost met.
10. Once again
nifty opened up with a big gap, made a higher than that yesterday soon after
open but later continued to go down and closed -ve (as indicated by pre-open
data) though above yesterday's close. It also made a higher low than that
yesterday. Importantly, it made a new high for 2012 and also closed at a new
high for 2012.
Both the targets of 9.30 strategy's
sell trade were met albeit without giving an entry. The target of the +ww
stated in the first post was met upon open itself. Also, the initial target of
a +ww and a flag identified during the day were almost met though not the
revised target of the same +ww.
The
intraday chart of nifty spot values with 5 min candles is shown below.
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