Daily_Nifty_VP's View-09/01/13

LEADER POST for Wednesday (09/01/13)

1.         Supports are at about 5991, 5974, 5943, 5919 and 5893 while resistances are at about 6004, 6022, 6053 and 6070. Three likely +WWs give about 6024, 6039 and 6064 (+WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5983, 5871 (once below 5983) and 5797 (once below 5942) (other -WWs with lower targets are not mentioned presently). Nifty seemed to have broken out of a channel and can give 6090. But if it breaks and remains below 5965, it may go down to the bottom of channel, which is placed at about 5840. Two bullish flags can give 6010 and more unless killed below 5980.

Nifty closed above 6000 again but unless it goes and remains above 6043 for the week, it is not bullish. If it convincingly breaks below 5965, it may go down further. It seems to be consolidating between 5965-6045 and we can see high volatility from now on.

2.         AS PER 9.30 STRATEGY, SELL ABOVE 6016NF, TARGET 5995/79, SL 6046.

3.         If SL hit, buy below 6062NF, target 6085/6100, SL 6032.

4.         SL triggered.

5.         SL of reverse trade also hit.

6.         A bearish flag gives 5974NS unless killed above 6010.

7.         Bearish flag target met. Targets of first -WW of the first post met.

8.         Target of original 9.30 strategy met but after triggering SLs on either side first.

9.         One possibility is that bottom is over.

10.       Nifty opened up with a slight gap, made a higher high than yesterday but then reacted immediately to make a lower low before closing -ve and also below yesterday's close. The target of first bullish flag and first -ww of the first post were met in that order but the SL of 9.30 strategy trade was hit on either side before giving target of original trade. The target of a bearish flag identified during the day was also met. The daily candle is bearish engulfing.

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