Daily_Nifty_VP's View-17/07/13

LEADER POST for Wednesday (17/07/13)

1.         Supports are at about 5935, 5908 and 5855 while resistances are at about 5975, 6013, 6040 and 6100. Two +WWs can give about 5999 and 6060 (+WWs with higher targets are not mentioned as of now). Three -WWs can give about 5940, 5853 and 5840 (-WWs with lower targets are not mentioned presently). A daily bullish flag can give about 6085 unless killed below about 5700.

Nifty recovered after a big gap down open and managed to close above 5950 and remain above 50/200 sma. RSI is not oversold and weekly chart shows bullishness and hence nifty may not fall much. A break below 5880 and a weekly close below about 5915 can cause further fall. 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 at 1.28 and VIX at 18.99. Pre-open data suggests an uncertain but possibly +ve nifty after a small gap up open unless it remains below 5972 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6003NF, TARGET 6028, SL 5973.

4.         If SL is hit, sell above 5964NF, target 5938, SL 5994.

5.         SL hit.

6.         Target of first -ww of the first post met.

7.         Target of reverse trade met.

8.         Nifty opened up with a gap and remained flat for a while before reacting only to recover later. It made a higher high and low than those yesterday before closing slightly +ve and also above yesterday's close. The target of first -ww of the first post was met. However, SL of 9.30 strategy was hit and the target of reverse trade was met. The daily candle is a doji.

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