Daily_Nifty_VP's View-21/02/13

LEADER POST for Thursday (21/02/13)

1.         Supports are at about 5925, 5905, 5886 and 5830 while resistances are at about 5956, 5972, 5978 and 6010. Three likely +WWs give about 5966, 5973 and 6010 (other +WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5929, 5871 (once below 5916) and 5865 (once below 5927) (other -WWs with much lower targets are not mentioned presently). A falling channel seems to have broken out and can give about 6110 unless nifty goes down and remains below 5886. A bullish flag gives higher target unless killed below 5915.

Nifty closed above 5900 again and indicates that higher levels are possible. However, the daily candle is an imperfect morning star, a likely reversal sign. Hence, bulls will hope for a gap up open with +ve close while bears will hope for the opposite. Only if Nifty closes above 6000, it may go up further but will be bullish only in case of a weekly close above 6140. If nifty closes below 5900 again, it may go down further. Only global clues and/or liquidity (including from DIIs) can take nifty up. Volatility will gradually increase as budget day approaches.

2.         PCR at 0.92 and VIX at 15.60. Pre-open data suggests a -ve nifty after a gap down open unless it remains above 5955.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5915NF, TARGET 5884, SL 5945.

4.         NS must go below 5900 to fall further.

5.         Target of first -ww was met.

6.         (Post by LKL) Target achieved….

7.         Targets of last two -WWs also met.

8.         Nifty opened gap down and continued to slide, making a lower high and low than those yesterday before closing strongly -ve and also below yesterday's close. The targets of all the three -WWs of the first post were met as also the target of 9.30 strategy trade.

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