Daily_Nifty_VP's View-09/10/13

LEADER POST for Wednesday (09/10/13)

1.         Supports are at about 5895, 5866 and 5818 while resistances are at about 5940, 5970 and 6009. 200/100 dma are at about 5840/5803 while 50 wma is at about 5829. Four +WWs can give about 5970, 5996, 6011, 6024 and 6037 (+WWs with higher targets are not mentioned as of now). Three -WWs can give 5862/5790 (once below 5972) and 5903 (-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. A bullish flag can give 6075 unless killed below 5740.

Nifty fell after a gap up open and closed above 5900. Nifty should close above 5906 on Wednesday to 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 an uncertain to mildly +ve nifty after a gap down open unless it remains below 5893 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5902NF, TARGET 5873, SL 5932.

4.         SL hit, hence buy below 5927NF, target 5962, SL 5897.

5.         Target met.

6.         Target of first three +WWs met.

7.         Nifty opened gap down to make a lower low but then didn't look back and rose about 140 points above low without a hiccup to make a higher high and a new high since 20/9 before closing strongly +ve and also strongly above yesterday's close. The targets of first three +WWs of the first post were met. However, SL of 9.30 strategy was hit and target of reverse trade was met. The daily candle is bullish engulfing Marubuzo.

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