Daily_Nifty_VP's View-25/04/13

LEADER POST for Thursday (25/04/13)

1.         Supports are at about 5808, 5811, 5790 and 5758 while resistances are at about 5845, 5870 and 5956. Previous higher levels to watch are 5864/5946/5971 while a gap exists at 5873. A likely +WW gives about 5892 (other +WWs with higher targets are not mentioned as of now). A likely -WW gives about 5795 (-WWs with lower targets are not mentioned presently). Two bullish flags can give much higher level unless killed below 5738/5630.

Nifty closed flat but above 5800 again thereby continuing its bullish sentiment. It now appears that nifty will rally from here. However, the daily candle is a Red, hanging man, a likely bearish sign. The slight consolation is that nifty fut candle is a Green, long legged Doji. To defeat it, nifty must close above 5836 with a green candle, preferably with a gap up open. Nifty now needs to close consistently above 5868 and then above 5955. A close below 5750 may trigger further selling. 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, Thursday being the expiry day. Only global cues and/or liquidity (including from DIIs) can take nifty further up.

2.         PCR up at 1.22 and VIX down at 15.07. Pre-open data suggests a +ve nifty after a gap up open unless it remains below 5856 till afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5887NF, TARGET 5854, SL 5917.

4.         If SL is hit, buy below 5907NF, target 5943, SL 5877.

5.         SL hit at last.

6.         Target of one of the bullish flags of the first post was met.

7.         Nifty opened gap up and rose to make a higher high before reacting sharply but still made a higher low. Late in the day, it rose sharply to make a new high before closing +ve (as indicated by the pre-open data) and also above Tuesday's close and at a new high since 8th March. The target of 9.30 strategy trade was missed by 7 points and then its SL was hit too late in the day to give target of reverse trade.

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