Daily_Nifty_VP's View-17/01/13

LEADER POST for Thursday (17/01/13)

1.         Supports are at about 5994, 5978, 5968 and 5921 while resistances are at about 6028, 6075 and 6116. Three likely +WWs give about 6042 (once above 6018), 6044 (once above 6014) and 6107 (other +WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5958, 5950 and 5940 (-WWs with much lower targets are not mentioned presently). Nifty has broken down from a rising channel and can give about 5940. A bearish flag can give lower level unless killed above 6019.

Nifty reacted and just managed to close above 6000, giving a bearish signal again. However, it is close to a support level of about 6000. If it breaks down further, 5920/5880 are possible. Be careful of high volatility.

2.         AS PER 9.30 STRATEGY, SELL ABOVE 6021NF, TARGET 5979, SL 6051.

3.         PCR at 1.06 and VIX at 14.02.

4.         If SL is hit, buy below 6028NF, target 6070, SL 5998.

5.         SL hit.

6.         Targets of first two +WWs met.

7.         Target of 9.30 strategy reverse trade met without giving chance of an entry.

8.         Nifty opened flat (though nifty fut opened up with a slight gap), made a lower 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. However, SL of 9.30 strategy trade was hit and the target of reverse trade was met though without giving chance of an entry.

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