Daily_Nifty_VP's View-01/01/13

LEADER POST for Tuesday (01/01/13)

1.         Supports are at about 5901, 5895, 5885 and 5862 while resistances are at about 5918 and 5924. Other levels to watch are 5940 and 5965. Three likely +WWs give about 5925, 5946 and 5979 (+WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5887 (once below 5924, which is yet to be reached), 5857 and 5828 (once below 5934 which is yet to be reached) (other -WWs with lower targets are not mentioned presently).

Nifty closed above 5900 again but continues to remain in the range 5825-5965. The daily candle is an inside bar to Thursday's mother candle and the monthly candle is a near-doji, a likely reversal sign. Hence, it is not bullish yet and will become so only after closing above 5965. The only encouraging sign is that Dec closed above 5879 (5915NF). If nifty first closes below 5823, it may become bearish. It will be interesting to see the candle for Tuesday, being the first day of the month and the year. It should be green to give hope to bulls.

2.         Pre-open high/low at 5937.70/5905.10 and close at 5937.65. This may indicate a +ve nifty after a gap up open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5949NF, TARGET 6002/22, SL 5919.

4.         Target of first two +WWs met.

5.         First requirement of crossing 5940 met. Now to see whether 5965 is taken out.

6.         Target met without giving an entry.

7.         Nifty opened up with a gap, made a higher high and low than those yesterday before closing +ve and also above yesterday's close. The targets of first two +WWs of the first post were met in the first 15 min as also the target of 9.30 strategy but without giving a chance for an entry. The total range was only about 28 though range of nifty fut was about 59. The daily candle on the first day of month and year is green but an imperfect inverted hammer.

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