Daily_Nifty_VP's View-30/08/13

LEADER POST for Friday (30/08/13)

1.         Supports are at about 5315, 5290 and 5155 while resistances are at about 5410, 5441, 5477, 5510 and 5565. 200 wma is at about 5446. Three +WWs can give about 5437, 5453 and 5565 (+WWs with higher targets are not mentioned as of now). Six -WWs can give about 5365/55 (once below 5403), 5347 (once below 5371), 5284 (once below 5361), 5227 (once below 5329) and 5216 (once below 5316) (-WWs with lower targets are not mentioned as of now). A falling wedge BO can give about 5520 if nifty remains above 5300. A rising wedge and a rising channel BD can give 5305/5125 if nifty remains below 5405.

Nifty rallied strongly again and closed just above 5400, giving some hopes to the bulls. The medium term bearish sentiment is still exists. However, +ve div gives hopes a recovery. Weekly resistance is at about 5526. If Friday closes above 5372, weekly candle will be hammer while if it closes above 5557, monthly candle will be a hammer, an extremely rare candle. Oil price and INR continue to play spoilsport and will remain key to the future of Indian markets in the short to medium term. Additional tension is the likelihood of a US attack on Syria. High VIX can cause sharp swings. Only global cues and/or liquidity can take nifty further up.

2.         Pre-open data suggests a -ve nifty after a flattish open unless it remains above 5408 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5402NF, TARGET 5360, SL 5432.

4.         If SL is hit, buy below 5397NF, target 5440, SL 5367.

5.         SL hit.

6.         Target of reverse trade met without getting chance of an entry.

7.         Target of reverse trade met without getting chance of an entry.

8.         Target of second +ww also met.

9.         SL of reverse trade also hit and target of original trade met without getting chance of an entry.

10.       SL hit again.

11.       Target met again but without getting chance of an entry.

12.       Nifty opened flat and rose sharply to make a higher high. But it fell sharply again, made a slightly lower low than morning and then shot up to make a higher high than morning before closing +ve and also above yesterday's close. The targets of first two +WWs of the first post were met. However, SLs of 9.30 strategy were hit thrice on either side and targets of respective trades were met without getting chance of an entry even once. The weekly candle is once again a hammer, twice in a row, which probably has never occurred before.

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