Daily_Nifty_VP's View-03/01/13

LEADER POST for Thursday (03/01/13)

1.         Supports are at about 5986, 5936, 5904 and 5874 while resistances are at about 6001, 6013, 6021, 6029 and 6062. Three likely +WWs give about 6035, 6044 and 6100 (+WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5871/5797 (once below 5937, which is yet to be breached) and 5818 (once below 5973, which is yet to be breached) (other -WWs with lower targets are not mentioned presently). Nifty seems to have broken out of a channel and can give 6090. But if it goes down and breaks below 5965, it may go down to the bottom of channel, which is placed at about 5840.

Nifty closed at a new high, giving bullish sentiment. The daily candle is again an imperfect inverted hammer. Also, there is a -ve div on daily chart. Hence, nifty needs to cross and remain above 6006 for a few days and the -ve div needs to be killed. If nifty first closes below 5900, it may be worrisome. The high premium is still a problem.

2.         PCR down at 0.99 and VIX at 13.71. Pre-open high/low at 6080.60/5993.25 and close at 6015.80. The inverted hammer of 10tf candle may indicate a -ve nifty after a gap up open unless it remains above 6016 for at least an hour.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6059NF, TARGET 6012/5993, SL 6089.

4.         Nifty opened up with a gap, made a higher high and low than those yesterday before closing above yesterday's close at a new high. But it closed-ve as indicated by the pre-open data. Also, since total range was only about 29, none of the targets were met. The daily candle is a hanging man.

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