Daily_Nifty_VP's View-27/09/12

LEADER POST for Thursday (27/09/12)

1.         The supports are closely spaced at about 5662, 5652, 5635, 5631, 5627, 5624 and 5604. Resistances are at about 5669 and 5722. Two likely +WWs give about 5699/5701 (once above 5671/68 resp.) (+WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5651/19 (-WWs with much lower levels are not mentioned presently). A bullish flag on smaller tf and another one on daily chart give much higher levels unless killed below about 5632/5605 resp.

Nifty is consolidating and opened -ve as indicated by the two previous inside bars but actually closed mildly +ve on Wednesday though below Tuesday's close. But, Wednesday's candle is once again an inside bar to Friday's Mother bar (i.e. three consecutive inside bars). Though these can be reversal signals, it is important to note a few things. Since 200 ema and "parabolic sar" show bullish trend, the upmove may begin with a BO once nifty crosses above 5703 and then 5720. It is interesting to note that even though earlier two candles were inside bars, nifty closed +ve on Wednesday.

 

However, global clues are bearish. Hence if nifty crosses below Wednesday's low, it may break down further. Otherwise, it remains a "buy on dips" situation as of now. Liquidity continues to be very strong. But since expiry is on Thursday, trade cautiously keeping the important level of 5703 in mind and trade in Oct fut/options, if you must. it is important to note a few things.iversal signals, it is important to note a few things. Since 200 ema and "parabolic sar" show bullish trend, the upmove may begin again with a BO once nifty crosses above 5703 and then 5720. It is interesting to note that even though earlier two candles were inside bars, nifty closed +ve on Wedne

However, global cues are bearish. Hence, if nifty crosses below Wednesday's low, it may break down further. Otherwise, it remains a "buy on dips" situation as of now. Liquidity continues to be very strong. But, since expiry is on Thursday, trade cautiously keeping the important level of 5703 in mind and trade in Oct fut/options, if you must.

However, global cues are bearish. Hence, if nifty crosses below Wednesday's low, it may break down further. Otherwise, it remains a "buy on dips" situation as of now. Liquidity continues to be very strong. But, since expiry is on Thursday, trade cautiously keeping the important level of 5703 in mind and trade in Oct fut/options, if yoHowever, global cues are bearish. Hence, if nifty crosses below Wednesday's low, it may break down further. Otherwise, it remains a "buy on dips" situation as of now. Liquidity continues to be very strong. But, since expiry is on Thursday, trade cautiously keeping the important level of 5703 in mind and trade in Oct fut/options, if you must.
2.         PCR at 1.22 and VIX at 16.97. Pre-open high/low at 5674.45/5517.05 and close at 5673.75. The 10 tf candle is a hammer. This may indicate a flat to mildly +ve nifty after a slight gap up open.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5699NF TARGET 5657 SL 5729.

4.         A -ww gives 5653.

5.         Target achieved. Better book your shorts and go small long in Oct series. Targets of -ww stated in the first post and another -ww identified during day met.

6.         Nifty opened up with a small gap and made higher high and higher low than those yesterday but closed -ve and also below yesterday's low. The target of first +ww mentioned in the first post was missed by about 6 but that of the first -ww was met. Also met was target of another -ww identified during the day. In addition, target of 9.30 strategy target was also met. Today's candle is also an inside bar to Friday's candle.

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