Daily_Nifty_VP's View-24/09/13

LEADER POST for Tuesday (24/09/13)

1.         Supports are closely spaced at about 5857 and 5830 while resistances are at about 5990, 6035 and 6074. 200/100 dma are at about 5841/5820 while 50 wma is also at about 5820. Three +WWs can give about 5937 (once above 5882) and 6036/6159 (once above 5912) (+WWs with higher targets are not mentioned as of now). Two -WWs can give about 5806 and 5730 (-WWs with lower targets are not mentioned as of now). BO of two falling wedges can give about 6030/6130 if nifty remains above 5900.

Nifty fell in spite of a big gap down open and closed below 5900. Daily candle is like an inverted hammer. Also, weekly and monthly charts are still healthy. A break below 5857 could be bad but below 5800 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.         AS PER 9.30 STRATEGY, SELL ABOVE 5895NF, TARGET 5856, SL 5925.

3.         If SL is hit, buy below 5904NF, target 5944, SL 5874.

4.         SL hit.

5.         Target of first +ww met.

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

7.         Today was a NR 4 day.

8.         Nifty opened down with a gap to make a lower low. It then rose but could not make a higher high and reacted finally closing +ve but slightly above yesterday's close. The target of first +WW of the first post was met. However, SL of 9.30 strategy was hit and target of reverse trade was met without giving chance of an entry. Daily candle is like an inverted hammer. Tuesday was a NR 4 day.

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