Daily_Nifty_VP's View-10/01/13

LEADER POST for Thursday (10/01/13)

1.         Supports are at about 5957, 5951, 5946, 5908 and 5900 while resistances are at about 6012, 6058 and 6082. Three likely +WWs give about 6007 (once above 5983), 6033 (once above 5948, which is yet to be reached) and 6053 (once above 5966) (+WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5953 and 5983 (once below 6025 which is yet to be reached) (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 which it has tried twice, it may go down to the bottom of channel, which is placed at about 5840. A bearish flag can give lower level unless killed above 5987.

Nifty closed below 6000 again and also below 5977 after trying to breach 5965 once again. Unless it goes above 6070, it is not bullish. If it convincingly breaks below 5965, it may go down further to at least 5907 and may be much lower. It seems to be consolidating between 5965-6045 and we can see high volatility from now on.

2.         PCR down at 1.0 and VIX at 13.32. Pre-open high/low at 5999.30/5971.50 and close at 5998.80. This may indicatea +ve nifty after a gap up open unless it remains below 5971 for at least one hour.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6031NF, TARGET 6063/83, SL 6001.

4.         SL triggered.

5.         Target of first -ww considered met.

6.         Nifty opened up with a small gap but once again reacted to make a lower high and low than those yesterday (nifty fut made a slightly higher low) before closing -ve and also slightly below yesterday's close (nifty fut closed above yesterday's close). The target of first -ww of the first post was met and the SL of 9.30 strategy trade was hit. The daily candle of nifty fut is an inside bar while that of nifty is just a bearish candle.

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