1. Supports are at about 5831 and 5821
while resistances are at about 5843, 5894 and 5931. Three likely +WWs give
about 5894 (once above 5830), 5935 (once above 5829) and 5952 (once above 5838)
(other +WWs with higher targets are not mentioned as of now). A likely -WW
gives about 5780 (once below 5862) (-WWs with much lower targets are not
mentioned presently). A falling broadening wedge seems to have broken out and
can give 5971/6070 but if nifty remains below 5836, its BD can give 5729.
Nifty closed below 5850 again confirming reversal indicated by Dark Cloud
Cover candle of Friday. But the daily candle is like an inverted hammer, a
reversal sign if nifty manages to close above 5936 and preferably above 5873.
The bullish sentiment continues on weekly basis unless this week closes below
5946. There is also a mild hidden divergence on daily chart. Only global clue
and/or liquidity (including from DIIs) can take nifty further up. Considering
that Tuesday's RBI policy review is the most important of the year, volatility
will be very high with wild swings. I feel that both 5753/5729 on lower side
and 5990/6030 on higher side are possible by expiry.
2. PCR at 1.15 and VIX at 15.85.
Pre-open suggests a +ve nifty after a gap up open unless it remains below 5835.
3. AS PER 9.30 STRATEGY, BUY BELOW 5885NF,
TARGET 5907, SL 5855.
4. If SL is hit, sell above 5842NF, target
5819, SL 5872.
5. SL hit.
6. Target of reverse trade met.
7. The target of -WW as well as that of BD
of falling broadening wedge of the first post met.
8. Nifty opened up with a gap but started
reacting slowly. However, the moment it went below 5835, it collapsed as
indicated by the pre-open data. It thus made a higher and lower low than those
yesterday before closing strongly -ve and also below yesterday's close. The
targets of -ww and BD of a broadening wedge of the first post were met. However,
SL of 9.30 strategy trade was hit and target of reverse trade was met. The
daily candle is a bearish engulfing.
The intraday chart of nifty spot values with 5 min
candles is shown below.
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