Daily_Nifty_VP's View-11/07/13

LEADER POST for Thursday (11/07/13)

1.         Supports are at about 5780 and 5695 while resistances are at about 5845, 5871, 5894 and 5943. The unfilled gap on the lower side is at about 5682. Five +WWs can give about 5866/5885 (once above 5839), 5895, 5920 and 5945 (+WWs with higher targets are not mentioned as of now). A -WW can give about 5676 (-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. Another bearish flag can give about 5770 unless killed above 5845. A daily bullish flag can give a much higher level unless it gets killed below about 5700.

Nifty reacted in spite of a gap up opening but managed to close above 5800. However, it closed again below 200 sma indicating highly volatile nature of the market. The trend is still bearish. The daily candle is a bearish engulfing one. A close below about 5760 can cause a big fall. While, if nifty closes above 50 sma (about 5920), it will give hopes to bulls. 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.         PCR down at 1.13 and VIX up at 19.98. Pre-open data suggests a +ve nifty after a gap up open unless it remains below 5894 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5898NF, TARGET 5942, SL 5868.

4.         Targets of first four +WWs of the first post met.

5.         Target met without getting chance of an entry.

6.         Target of fifth +ww also met.

7.         Nifty opened up with a big gap and yet didn't look back. It made a higher high and low than those yesterday before closing strongly +ve and also above yesterday's close. The targets of all the five +WWs of the first post were met as also that of 9.30 strategy but without giving chance of an entry.

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