Daily_Nifty_VP's View-08/10/13

LEADER POST for Tuesday (08/10/13)

1.         Supports are at about 5885, 5850 and 5800 while resistances are at about 5927, 5965 and 6010. 200/100 dma are at about 5841/5804 while 50 wma is at about 5831. Five +WWs can give about 5950, 5989, 6011, 6024 and 6080 (+WWs with higher targets are not mentioned as of now). Two -WWs can give 5869/5806 (once below 5965, which is yet to be reached) (-WWs with lower targets are not mentioned as of now). BO of a falling wedge can give about 6125 while BO of a falling channel can give 6030 if nifty if nifty continues to go up.

Nifty rose after a gap down open and a lower low but just managed to close above 5900. The daily candle is a hammer. Nifty should remain above 5965to sustain the upmove. If it goes below 5820, it may fall sharply. 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 big gap up open unless it remains below 5975 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6014NF, TARGET 6045, SL 5984.

4.         If SL is hit, sell above 5987NF, target 5955, SL 6017.

5.         SL hit.

6.         SL of reverse trade also hit.

7.         Target of first +ww met.

8.         SL hit for the third time.

9.         Target of reverse trade was met without giving chance of an entry.

10.       Sell was triggered and target of reverse trade met again.

11.       Nifty opened up with a big gap, remained flat for an hour and then started falling. It thus made a higher high and low than those yesterday before closing -ve but above yesterday's close. Today's low was above yesterday's high though not for nifty fut. The target of first +ww of the first post was met. The SL of 9.30 strategy was hit thrice on either side and target of reverse trade was met twice, first without giving chance of an entry and then after entry was triggered.

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