Daily_Nifty_VP's View-27/09/13

LEADER POST for Friday (27/09/13)

1.         Supports are at about 5860, 5835 and 5810 while resistances are at about 5935 and 5995. 200/100 dma are at about 5841/5817 while 50 wma is also at about 5820. Three +WWs can give about 5947, 5954 and 6000 (+WWs with higher targets are not mentioned as of now). Three -WWs can give about 5844, 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 5840.

Nifty closed flat but below 5900 again. Daily candle is an inverted hammer, a likely reversal sign. Also, weekly and monthly charts are still healthy. Thursday was a NR7 day and we may see a big move on Friday. A break below 5800 could mean much lower levels. 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 small gap up open unless it remains above 5906 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5938NF, TARGET 5907, SL 5968.

4.         Target of 9.30 strategy met.

5.         Another -ww can give 5827NS.

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

7.         Target of above mentioned -ww met.

8.         Today, entry was available twice for 9.30 strategy and both the times target was met.

9.         Nifty opened gap up but quickly started falling. It thus made a lower high and low than yesterday before closing strongly -ve and also below yesterday's close. Target of first -ww of the first post was met. Target of a -ww identified during the day was also met. In addition, target of 9.30 strategy was met twice after giving chance of an entry both the times. Daily candle is a bearish Marubuzo while weekly candle is like an evening star.

The week’s chart suggests that nifty is close to the breakdown level of 5800 unless it reverses sharply.

The intraday and week’s charts of nifty spot values with 5 min candles are shown below.