Daily_Nifty_VP's View-18/07/13

LEADER POST for Thursday (18/07/13)

1.         Supports are at about 5960, 5933 and 5855 while resistances are at about 6040 and 6105. A number of +WWs can give about 5994, 6000, 6028, 6060, 6070 and 6085 (+WWs with higher targets are not mentioned as of now). Three -WWs can give about 5902, 5870 and 5852 (-WWs with lower targets are not mentioned presently). A daily bullish flag can give about 6085 unless killed below about 5700.

Nifty closed flat but above 5950 and 50/200 sma. RSI is not oversold and weekly chart shows bullishness and hence nifty may not fall much. However, daily candle is doji showing uncertainty, which can be removed by a +ve close well above 5974 on Thursday, preferably after a gap up open. 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 down at 1.26 and VIX up at 19.36. Pre-open data suggests a +ve nifty after a small gap up open unless it remains below 5984 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5998NF, TARGET 6031, SL 5968.

4.         Target of first two +WWs of the first post were met soon after open.

5.         Target of 9.30 strategy met.

6.         Target of third +WW of the first post also met.

7.         Nifty opened up with a small gap, reacted a bit and remained in a tight range of about 30 points till late in the afternoon. It then rose very sharply in the last 40 min. It made a higher high and low than those yesterday before closing strongly +ve and also strongly above yesterday's close. In fact, it made a higher than that on 15/07, its low was above yesterday's close and it closed at a new high since 30/05 but just missed closing above the high of 15/07 by a mere 0.20 points. The targets of first three +WWs of the first post were met as also the target of 9.30 strategy.

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