Daily_Nifty_VP's View-23/09/13

LEADER POST for Monday (23/09/13)

1.         Supports are closely spaced at about 5980, 5949, 5885, 5860 and 5815 while resistances are at about 6107 and 6190. A gap on lower side is at 5899. Two +WWs can give about 6164/6202 (once above 6077) (+WWs with higher targets are not mentioned as of now). Three -WWs can give about 5983, 5966 and 5836 (-WWs with lower targets are not mentioned as of now).

Nifty rose fell sharply and closed just above 6000. Daily candle is like a hanging man while weekly candle is like a doji showing likely uncertainty or reversal. A break below 5930 could be bad but below 5850 could be worse. 6223 is a weekly resistance. Nifty should close above 6094 to gain further momentum. Oil price and INR can play spoilsport any time and will remain key to the future of Indian markets in short to medium term. VIX is still high and 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 gap down open unless it remains below 5945 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5986NF, TARGET 6028, SL 5956.

4.         SL hit.

5.         Since SL is hit, sell above 5982NF, target 5939, SL 6012.

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

7.         Targets of first two -WWs met in open itself.

8.         The gap at 5899 was filled.

9.         Nifty opened down with a big gap, rose a bit and started reacting. It made a lower high and low than those on Friday before closing -ve and strongly below Friday's close. Targets of first two -WWs of the first post were met. Also, the gap created on 18-19/9 was filled. SL of 9.30 strategy was hit and the target of reverse trade was met but without giving chance of an entry.

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