Daily_Nifty_VP's View-03/09/13

LEADER POST for Tuesday (03/09/13)

1.         Supports are at about 5545, 5515 and 5420 while resistances are at about 5572, 5602, 5628 and 5680. Three +WWs can give about 5595, 5630 and 5692 (+WWs with higher targets are not mentioned as of now). A -WWs can give about 5452 (once below 5524) (-WWs with lower targets are not mentioned as of now). A rising wedge and a rising channel BD can give 5305/5125 if nifty goes and remains below 5405.

Nifty rose strongly again and closed just above 5550, giving more hopes to the bulls. It also closed above 100 wma. Also, +ve div persists upto weekly chart and thus gives hopes of a further recovery. If nifty goes below 5480, it may fall further. 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.         PCR up at 1.24 and VIX down at 27.55. Pre-open data suggests a +ve nifty after a small gap up open unless it remains below 5574 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5554NF, TARGET 5513, SL 5584.

4.         Target met without getting chance of an entry.

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

6.         Nifty opened gap up but that was the end. It started falling and kept falling to make a higher high and lower low than yesterday before closing strongly -ve and also strongly below yesterday's close. The target of -WW of the first post was met as also that of 9.30 strategy but without giving chance of an entry. The daily candle is huge, bearish engulfing.

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