Daily_Nifty_VP's View-20/09/12

LEADER POST for Thursday (20/09/12)

1.         The supports are at about 5593/89, 5560, 5526 and 5504. Resistances are at about 5682 and 5779. A number of likely +WWs give about 5628/32/40/44 and 5733 (+WWs with much higher targets are not mentioned as of now). A likely -WW gives about 5525 (once below 5570) (-WWs with much lower levels are not mentioned presently). An apparent DT gives about 5520 or 5650 in case of a BD/BO.

Nifty future barely managed to close once again above 5612, an important number as per a number theory thereby retaining its bullish sentiment in the short term. Liquidity continues to remain very high. However, nifty is likely to react from present levels to consolidate and discount any bad political fallout. With major global news out of the way, nifty will now be left to discount local news only. A daily close below 5591 will need to be treated with caution but only a daily close below 5515 will ring alarm bells. Otherwise, it is a buy on dips situation as of now.

2.         PCR at 1.17 and VIX at 17.83. Pre-open high/low at 5600.05/5277.40 and close at 5536.95. The 10tf candle is a hammer and may indicate a mildly +ve nifty after a gap down open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5556NF TARGET 5593.60/5614 SL 5526. Be careful of volatility.

4.         A flag gives 5592NF unless killed below about 5572.

5.         First target of 9.30 strategy met albeit without giving an entry. Previous flag target also reached. A new flag now gives 5583NS unless killed below about 5565.

6.         Nifty opened gap down, managed to go up by about 44 points but then reacted to close mildly +ve (as indicated by the pre-open data) but below yesterday's close. In the process, it made a lower high and lower low than that on Tuesday. The gap created on 17th Sept was filled up in the opening itself. The total range remained about 44 points but the first target of the 9.30 strategy trade was met. The DT stated in the first post did break down in the open.

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