Daily_Nifty_VP's View-18/09/13

LEADER POST for Wednesday (18/09/13)

1.         Supports are at about 5835, 5818, 5804 and 5745 while resistances are at about 5880, 5942 and 5985. 200/100 dma are at about 5840/5818 and 50wma is at about 5813 while a gap on lower side is at 5680. Five +WWs can give about 5891, 5897, 5920/42 and 5970 (+WWs with higher targets are not mentioned as of now). A -WW can give about 5804 (-WWs with lower targets are not mentioned as of now). A rising wedge BD can give about 5580 if nifty goes down again. A horizontal channel can give about 6050 after a BO above 5945 or 5700 after a BD below 5810.

Nifty rose from low levels to close above 5850 and above 100/200 dma for the fifth time in a row after crossing below 200 dma. It also broke below 50 wma and bounced back. Daily candle is an Inside Bar and mildly bullish piercing. Also, Tuesday was a NR7 (actually NR37) day and hence we may see a big move soon. A close below 5795 could be bad but a close below 5730 could be very bad. Weekly resistance is at about 5989. Oil price and INR can play spoilsport any time and will remain key to the future of Indian markets in short to medium term. This week's FOMC meet and RBI policy review may mean nervous and/or volatile markets. High VIX can cause sharp swings. Only global/local cues and/or liquidity can take nifty further up.

2.         Pre-open data suggests a +ve nifty after a small gap up open unless it remains below 5872 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5878NF, TARGET 5846, SL 5908.

4.         If SL is hit, buy below 5901NF, target 5934, SL 5871.

5.         SL hit.

6.         Targets of first two +WWs met.

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

8.         Nifty opened up with a small gap but quickly reacted to fill the gap. However, it then started rising and picked up speed in last hour to make a higher high and low than yesterday before closing +ve and also above yesterday's close. The targets of first two +WWs of the first post were met. The SL of 9.30 strategy was hit and the target of reverse trade was met without giving chance of an entry. Daily candle is another inside bar to the mother candle of 16/9 and also a doji.

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