Daily_Nifty_VP's View-10/07/13

LEADER POST for Wednesday (10/07/13)

1.         Supports are at about 5843, 5811 and 5782 while resistances are at about 5898, 5927 and 5988. The unfilled gaps on the higher/lower side are at about 5868/5682. Six +WWs can give about 5890, 5898, 5910, 5930, 5943 and 5985 (+WWs with higher targets are not mentioned as of now). A -WW can give about 5803 (-WWs with lower targets are not mentioned presently). A weekly bearish flag can give a much lower level unless it gets killed above about 6012. A daily bullish flag can give a much higher level unless it gets killed below about 5700.

Nifty closed above 5850 and also above 200 sma again, at the least confirming the volatile nature of the market. The trend still appears to be bearish. The daily candle is like an evening star though it is not at the top of an uptrend. Nevertheless, confirmation of its bearish tone will be if nifty closes -ve on Wednesday, particularly after a gap down open. A close below about 5760 can cause a big fall. While, if nifty closes above 50 sma (about 5921), it will give hopes to bulls. Tuesday was a NR7 day and one can expect a big move on Wednesday. Oil price and INR will remain key to the future of Indian markets in the short term. VIX and PCR are expected to remain high and can cause sharp swings. Only global cues and/or liquidity can take nifty further up.

2.         Pre-open doji candle indicates an uncertain to +ve nifty after a small gap up open unless it remains below 5869 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5896NF, TARGET 5921, SL 5866.

4.         If SL is hit, sell above 5859NF, target 5832, SL 5889.

5.         SL hit.

6.         Gap on the upper side filled up.

7.         Target of reverse trade met.

8.         Target of -ww met.

9.         Nifty opened up with a small gap and filled up the upper gap, which was unfilled till yesterday. It then remained in a range of about 25 points before suddenly tanking in the afternoon. It thus made a higher high and lower low than those yesterday before closing -ve and also below yesterday's close. The target of -ww of the first post was met. However, SL of 9.30 strategy trade was hit and target of reverse trade was met.

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