Daily_Nifty_VP's View-04/02/13

LEADER POST for Monday (04/02/13)

1.         Supports are at about 5990, 5977, 5969 and 5955 while resistances are at about 6009/13, 6030, 6066 and 6120. The previous low level to watch is 5940. Three likely +WWs give about 6020 (once above 5994), 6039 (once above 6021) and 6056 (once above 6012) (other +WWs with higher targets are not mentioned as of now). Four likely -WWs give about 5977, 5966, 5940 and 5907 (other -WWs with much lower targets are not mentioned presently). The target of BD of a wedge mentioned last week gave its target of 5990. Other targets of BD of second wedge and a rising channel are 5940/5840 unless nifty goes up again and remains above 6065.

Nifty reacted sharply and closed below the crucial level of 6000 giving a clearly bearish sentiment. There is also a -ve div on weekly chart now. The levels of 5940/5840 look possible now. The only silver lining for bulls is psychological and that is every one is bearish. Nifty is safe only above 6100. But I feel that only global clues can save nifty. Volatility will increase in February.

2.         PCR ta 0.94 and VIX at 13.76. Pre-open data suggests a +ve nifty after a small gap up open unless it remains below 6000.

3.         Targets of first two +WWs met.

4.         AS PER 9.30 STATEGY, BUY BELOW 6065NF, TARGET 6095, SL 6035.

5.         If SL is hit, sell above 6036NF, target 6004, SL 6066.

6.         SL hit.

7.         Gap filled.

8.         Target of 9.30 strategy reverse trade met.

9.         Nifty opened up with a small gap but reacted after a while to make a lower high and low than those on Friday before closing -ve and also below Friday's close. In the process it also filled the gap created during open. The targets of first two +WWs of the first post were met. But the SL of 9.30 strategy trade was hit and the target of reverse trade was met.

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