Daily_Nifty_VP's View-31/08/12

LEADER POST for Friday (31/08/12)

1.         The supports are at about 5276/74 and 5240/35. Also, there was a gap created at 5215 on 3rd August, which may be filled if nifty moves further down. Resistances are at about 5320, 5341 and 5350 while other previous levels to watch are 5352 and 5399. Three likely +WWs give about 5360, 5433 (once above 5363) and 5481 (once above 5354) (+WWs with higher targets are not mentioned). An old -ww gives 5234 (-WWs with lower levels are not mentioned). A likely flag with 70 high mast gives higher level unless nullified below about 5297. The falling wedge mentioned yesterday seems to have broken out and may give about 5450 unless it's a false break out.

Nifty recovered after a further fall on Thursday and seems to be in a mood to resume its upward journey. However, there are many ifs and buts. Friday, being the last day of the week, should not have a low below 5250/45 and should close above 5388 to remain bullish. However, 5360-75 is a good resistance zone. Nifty will have to give a break out above that to sustain its upmove for weeks to come. Otherwise, the gap on 3rd August is not far away nor is the "famous" zone since many years 5170-90. A lot of important news events are lined up in next 2 weeks and hence trade carefully.

2.         PCR down to 0.93 and VIX at 16.67. Pre-open high/low at 5315.05/5270.80 and close at 5298.20. The narrow range indicates uncertainty due to important news day. But a small gap down open looks certain.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5301.50NF TARGET 5281/66 SL 5331.50.

4.         Two -WWs give 5282/5240NS.

5.         First -ww target of 5282 met.

‎6.         9.30 strategy's first target considered met although it may go lower!

7.         Nifty opened down once again with a small gap, failed in its attempt to make a higher high than yesterday and then started sliding down to make a new low. It closed -ve and also below previous close. The target of an old -ww stated in the first post was almost met so also the targets of two -WWs identified during the day. The falling wedge break out of Thursday failed again. The first target of 9.30 strategy was also met.

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