Daily_Nifty_VP's View-08/03/13

LEADER POST for Friday (08/03/13)

1.         Supports are at about 5859, 5838 and 5825. Resistances are at about 5897 and 6000. An unfilled gap on higher side is 5943 while previous higher levels to watch are 5971 and 5991. Two likely +WWs give about 5913 and 5987 (other +WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5785 (once below 5866), 5783 (once below 5824) and 5764 (once below 5804) (-WWs with much lower targets are not mentioned presently). A bullish flag gives much higher levels unless killed below 5833. A rising channel can give about 5830 in case of a BD below 5866.

           Nifty again rose sharply to close above 5850 and seems headed for higher levels. The daily candle is also a bullish Marubuzo. The level of 5879 mentioned in Thursday's thread was almost re...ached and the weekly candle will most probably become a bullish engulfing one. There is already a +ve div in RSI on weekly chart. Also, nifty closed above 20sma and just crossed above 34 ema on daily chart. Hence, everything points to much higher levels. If nifty closes above 5848 on Friday, it will close above 20 sma on weekly chart also.

          However, nifty has reached overbought levels on lower tf and Friday may become the last bullish day for some time to come. Also, 5885 is a resistance of upper TL on weekly chart and there is a danger of nifty making a double top. Therefore, bulls will hope for 5879 being exceeded by a wide margin. Only global clue and/or liquidity (including from DIIs) can take nifty further up.

2.         Pre-open data suggests a +ve nifty after a gap up open unless it goes and remains below 5860 for an hour. PCR up at 1.05 and VIX down at 13.07.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5927NF, TARGET 5952, SL 5897.

4.         Target of first +ww met.

5.         Target (of 9.30 strategy trade) met.

6.         Gap at 5943NS filled up.

7.         Nifty opened gap up and once again remained in a small range of about 30 for about 4 hours before making a sharp upmove like yesterday. It made a high and low than those yesterday before closing strongly +ve (as indicated by the pre-open data) and also above yesterday's close. The target of first +ww and the bullish flag of the first post were met as also the target of 9.30 strategy trade. In the process, the gap at 5943 was also filled. The daily and weekly candles are bullish Marubuzo and weekly candle is also bullish engulfing.

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