Daily_Nifty_VP's View-06/09/13

LEADER POST for Friday (06/09/13)

1.         Supports are at about 5550, 5520 and 5495 while resistances are at about 5619, 5640, 5660 and 5710. 50 dma is at about 5703. A +WW can give about 5612 (+WWs with higher targets are not mentioned as of now). A -WW can give about 5551 (once below 5607) (-WWs with lower targets are not mentioned as of now). A bullish flag can give much higher level unless killed below 5300. A horizontal channel can give about 5640 if the BO above 5605 sustains or can give about 5520 if a BD below 5555 sustains.

Nifty rose in spite of a huge gap up open and gve hopes to bulls again by closing above Tuesday's intraday high. However, daily candle is an evening star, a likely reversal sign and nifty will have to close above 5593 to defeat it. Otherwise, it will have to close at least above 5484 to give a weekly close above 100/200 wma. If 5400 is breached lower levels are likely. A close above 5640 can take it to 5760 and beyond. 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 save nifty.

2.         Pre-open data suggests a +ve nifty after a small gap up open unless it remains below 5617 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5624NF, TARGET 5579, SL 5654.

4.         Target of +ww met.

5.         SL is hit. Now buy below 5617NF, target 5663, SL 5587.

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

7.         Nifty opened up with a gap and reacted initially. However, it rose and didn't look back, making a higher high and low than those yesterday before closing strongly +ve and also strongly above yesterday's close. Target of +ww of the first post was met in the open itself. However SL of 9.30 strategy was hit and target of reverse trade was met without getting chance of an entry. Daily candle is like an imperfect hanging man.

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