Daily_Nifty_VP's View-22/04/13

LEADER POST for Monday (22/04/13)

1.         Supports are at about 5772, 5740, 5724, 5713, 5693 and 5650 while resistance is at about 5825 while previous higher levels to watch are 5946/71. Three likely +WWs give about 5808, 5811 and 5837 (other +WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5737 (once below 5761) and 5700 (once below 5741) (-WWs with lower targets are not mentioned presently). A bullish flag can give much higher level unless killed below 5710. A rising wedge seems to have broken down and can give about 5555/06 unless nifty continues to go up.

Nifty closed very strongly above 5755. Daily and weekly close above the previous high of 5755, daily close above 200ema, weekly close above 34 ema and weekly candle engulfing real bodies of previous three weeks' candles are all bullish signs. It now appears that nifty will rally from here. However, it now needs to close consistently above 5864. Bulls will hope that the improved micro-economic situation in India will take market further up. Trade carefully since volatility will continue to be high, this week being expiry week. Only global cues and/or liquidity (including from DIIs) can take nifty further up.

2.         PCR up at 1.15 and VIX down at 15.36. Pre-open data suggests a +ve nifty after a slight gap up open unless it remains below 5770 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5797NF, TARGET 5772, SL 5827.

4.         If SL is hit, buy below 5834NF, target 5860/69, SL 5804.

5.         Targets of first two +WWs met.

6.         SL hit and buy triggered.

7.         SL hit on reverse trade also. Now short again.

8.         SL hit again.

9.         SL hit four times as of now.

10.       SL hit for the fifth time. Now long again.

11.       Target of third +ww and bullish flag of the first post also met.

12.       Nifty opened up with a small gap, made a higher high and low than those on Thursday before closing +ve and also above Thursday's close. The targets of all the three +WWs and bullish flag of the first post were met. However, SL of 9.30 strategy trade was hit on five occasions on either side but target of neither side was met.

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