Daily_Nifty_VP's View-25/09/12

LEADER POST for Tuesday (25/09/12)

1.         The supports are at about 5661, 5642, 5636, 5627 and 5610. Resistances are at about 5672, 5697, 5752 and 5757/60. Three likely +WWs give about 5683/87/95 (+WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5644/24 (-WWs with much lower levels are not mentioned presently). A bullish flag on smaller tf with a mast height 142 gives about 5805 unless killed below about 5632 while another with mast height of 185 on daily chart gives much higher level unless killed below about 5605. At the same time, a bearish flag gives about 5647 unless killed above about 5688.

Nifty is consolidating and closed -ve as indicated in the thread for Monday. However, a further upmove is possible soon considering that nifty made a new 52 week high before. The -ve div persists on daily chart though not on weekly chart. Now, a daily close below 5600 will have to be considered to be first sign of weakness. Otherwise, it remains a "buy on dips" situation as of now. Liquidity continues to be very strong. But, since expiry is approaching, trade cautiously and trade in Oct fut/options, if you must.

2.         Pre-open high/low at 5930.75/5655 and close at 5674.90. This is the highest pre-open in a long time. Note that most of the previous pre-open high levels have been achieved except for 5737 on 7th Sept and 5802 on 17th Sept. The 10tf candle is an inverted hammer and if we consider nifty to be in a downtrend after the peak on 21st Sept, then it is a reversal sign and may indicate a +ve nifty after a flat to mildly +ve open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5698NF TARGET 5732/49 SL 5668.

4.         The targets of all the three +WWs met in first 5 min.

5.         SL triggered. Sell above 5682NF Target 5646 SL 5712.

6.         A DT is forming which may give plus/minus about 45 in case of a BO/BD.

7.         The DT finally gave a BO, target 5700NS.

8.         Nifty opened up with a slight gap but reacted immediately thereafter. It then remained flat till about noon before improving a bit to close almost flat but slightly above Monday's close. The targets of all the +WWs mentioned in the first post was met. However, SL of 9.30 strategy trade got triggered but target of reverse trade was not reached. The target of bearish flag mentioned in the first post was almost met. The target of BD of a ST mentioned in the first post of Monday also gave its target. A BO of a DT identified during the day almost gave its target.

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