Daily_Nifty_VP's View-16/04/13

LEADER POST for Tuesday (16/04/13)

1.         Supports are at about 5557/51, 5535 and 5508 while 5494 and 5477 are previous levels to watch. Resistances are at about 5573, 5584, 5604, 5629 and 5670. While 200 sma lies at aboyt 5653, the previous gap is at about 5673. Four likely +WWs give about 5600, 5636, 5654 and 5688 (other +WWs with higher targets are not mentioned as of now). A -WW gives about 5544 (-WWs with lower targets are not mentioned presently). A bullish flag can give higher level unless killed below 5535. A IHnS can give about 5750 upon BO above 5595.

Nifty rose sharply to close above 5550 and particularly above 5559 mentioned in Monday's thread thereby giving a ray of hope to bulls. However, overall bearish tone is not gone. To begin with, nifty must cross 5603 and for continuation of uptrend, it must also cross 5655/75. But for a rally to start, it must close above about 5750. Though global markets have fallen in view of the crash in commodities markets, it's a God's gift for India in the short term as its Current Account Deficit and inflation will go down, giving hopes of a rate cut by RBI. Trade carefully since volatility will continue to be high. Only global cues and/or liquidity (including from DIIs) can take nifty up.

2.         PCR up at 0.93 and VIX up at 16.61. Pre-open data suggests a +ve nifty unless it goes below 5515 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5531NF, TARGET 5591/5601, SL 5501.

4.         Targets met without giving chance of an entry.

5.         Target of first +ww met.

6.         Target of second +ww met.

7.         Target of third +ww met.

8.         Target of bullish flag of the first post also met.

9.         Target of fourth +ww also met.

10.       In spite of very weak global markets, nifty opened down with only a small gap and perhaps there was a hint in it of shape of things to come. It started rising soon upon open and kept on rising throughout the day bulldozing past all resistance levels to make a much higher high and low than those yesterday before closing strongly +ve and also strongly above yesterday's close. The targets of all the +WWs and the bullish flag of the first post were met as also the target of 9.30 strategy trade though without giving chance of an entry. Nifty also closed well above 200sma.

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