Daily_Nifty_VP's View-03/10/13

LEADER POST for Thursday (03/10/13)

1.         Supports are at about 5765, 5737 and 5700 while resistances are at about 5816, 5842, 5880 and 5905. The nearest gaps on higher/lower side are at about 5833/5680. Three +WW can give about 5900/5965 (once above 5803) and 5954 (once above 5772) (+WWs with higher targets are not mentioned as of now). Two -WWs can give 5756/5752 (-WWs with lower targets are not mentioned as of now). BO of two falling wedges can give about 5880/6125 if nifty remains above 5756 while BO of a falling channel can give 6030 if nifty remains above 5816.

Nifty recovered to close above 5750 but below 200/100 dma. It recovered from 50 dma. Daily candle is a hammer, a likely reversal sign. To confirm, nifty will have to close above 5781 and preferably above 5801. There is a +ve div on daily chart. Oil price and/or 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 up open unless it remains below 5819 by afternoon.

3.         Immediate trend up, target 5904NF, SL 5844. Wait for 9.30 data.

4.         AS PER 9.30 DATA, BUY BELOW 5874NF, TARGET 5904, SL 5844.

5.         Target of 9.30 strategy met.

6.         Target of first +ww met.

7.         Target of BO of first falling wedge of the first post also met.

8.         Nifty opened up with a gap, remained flat for a short while before making a sharp upmove. It made a higher high and low than those on Tuesday before closing strongly +ve and also strongly above Tuesday's close. The targets of first +ww and that of BO of first falling wedge of the first post were met. Also met was target of 9.30 strategy. The daily candle is a bullish Marubuzo.

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