Daily_Nifty_VP's View-02/08/13

LEADER POST for Friday (02/08/13)

1.         Support is at about 5676, 5650 and 5610 while resistances are at about 5754, 5781, 5807 and 5950. Four +WWs can give about 5812 (once above 5665), 5879 (once above 5719), 5906 (once above 5664) and 5924 (once above 5846) (+WWs with higher targets are not mentioned as of now). A -WW can give about 5555 (-WWs with lower targets are not mentioned presently). A falling wedge/channel break out can give about 6045 if nifty remains above 5740.

Nifty fell sharply in spite of a gap up open and closed below 5750 again and is clearly bearish. Monthly chart is bearish showing -ve div. However, a +ve div is seen on lower TFs. Higher levels are possible only if nifty gives a weekly close above 5805. A close below 5715 can result in much lower levels as weekly support lies at 5600. Oil price and/or INR will remain key to the future of Indian markets in the short term. High VIX can cause sharp swings. Only global cues and liquidity can prevent further fall.

2.         Pre-open data suggests a +ve nifty after a gap up open unless it remains below 5750 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5778NF, TARGET 5735, SL 5808.

4.         Target met without getting chance of an entry.

5.         Nifty opened up with a small gap but started sliding. It made a lower high and low than those yesterday before closing -ve and also below yesterday's close. Target of 9.30 strategy was met without giving chance of an entry.

The week’s chart shows likelihood of much lower levels possible if 5600 is breached strongly.

The intraday and week’s charts of nifty spot values with 5 min candles are shown below.