Daily_Nifty_VP's View-26/08/13

LEADER POST for Monday (26/08/13)

1.         Supports are at about 5438 and 5340 while resistances are at about 5485, 5532 and 5600. Three +WWs can give about 5512, 5590 and 5625 (+WWs with higher targets are not mentioned as of now). Four -WWs can give about 5419, 5397, 5388 and 5326 (-WWs with lower targets are not mentioned as of now). A falling wedge BO can give about 5750 if nifty remains above 5300. A rising wedge can give about 5350 if nifty goes down and remains below 5445. A bearish flag can give much lower levels unless killed above about 5580.

Nifty rose again and finally closed above 100/200 wma giving some hopes to the bulls. A +ve div persists on all TFs upto daily. Also, weekly candle is a hammer and is a likely reversal sign. However, daily candle is like an imperfect hanging man and though it is not at the top of an uptrend, nifty must close well above 5472 with a green candle for a possible further upmove. INR has played spoilsport earlier and will remain key to the future of Indian markets in the short to medium term. However, such a low INR has also become attractive for FIIs and some fresh buying is expected unless it goes above 66. High VIX can cause sharp swings. Only global cues and/or liquidity can take nifty further up. Recent moves by RBI are likely to help banknifty.

2.         Pre-open data suggests a +ve nifty after a small gap up open unless it remains below 5499 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5476NF, TARGET 5523, SL 5446.

4.         Target of first +ww met.

5.         Target met without getting chance of an entry.

6.         SL hit. Now sell above 5490NF, target 5441, SL 5520.

7.         Target of reverse trade was just missed.

8.         Nifty opened gap up, made a higher high but then quickly reacted. It rose again in the afternoon only to fall again. However, it made a higher low than that on Friday before closing -ve but above Friday's close. The target of first +ww of the first post was met as also that of 9.30 strategy but without giving chance of an entry. Later, its SL was hit and target of reverse trade was just missed. The daily candle is an imperfect evening doji star. Monday was also a NR7 day.

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