Daily_Nifty_VP's View-10/10/13

LEADER POST for Thursday (10/10/13)

1.         Supports are at about 5992, 5940, 5906 and 5844 while resistances are at about 6022 and 6105. Three +WWs can give about 6040, 6058 and 6127 (+WWs with higher targets are not mentioned as of now). Four -WWs can give about 5945 (once below 5984) and 5944/5882/5839 (once below 6037, 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. Break down of a rising channel can give about 5880 if nifty remains below 6000. A bullish flag can give 6075 unless killed below 5740.

Nifty rose sharply in spite of a gap down open and closed above 6000 and is clearly bullish. If it goes below 5900, it may fall further. 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 slight gap down open unless it remains above 6002 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6039NF, TARGET 6083, SL 6009.

4.         SL hit, now sell above 6038NF, target 5993, SL 6068.

5.         SL of reverse trade also hit.

6.         Today was a NR 7 day.

7.         Target of BO of a falling channel of the first post was met.

8.         Nifty opened down with a slight gap, went down for about 2 hours and then reversed to make a higher high. Though it was volatile later, it still managed to close +ve and also above yesterday's close. The target of BO of a falling wedge of the first post was met. However, SL of 9.30 strategy was hit on either side but target of neither trade was met since range was narrow at about 54 points. Daily candle is like an evening star. Thursday was a NR 7 day.

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