Daily_Nifty_VP's View-18/01/13

LEADER POST for Friday (18/01/13)

1.         Supports are at about 6030, 6009, 5975 and 5928 while resistances are at about 6051, 6064, 6079, 6124 and 6133. Two likely +WWs give about 6120 and 6161 (other +WWs with higher targets are not mentioned as of now). Three likely -WWs give about 6010, 5997 and 5940 (-WWs with much lower targets are not mentioned presently). Nifty is near the bottom of a small rising channel and a break down below about 6033 can take it to about 5990. Similarly, nifty is in a big rising channel with its top at about 6124 and bottom at about 6000.

Nifty gained again and closed above 6030. However, it is still not bullish unless it closes above 6070. If it breaks down further, 5920/5880 are possible. Be careful of high volatility.

2.         PCR up at 1.11 and VIX at 14.01. Pre-open high/low at 6096.85/6039.20 and close at 6059.85. The inverted hammer of 10tf candle may indicate a -ve nifty after a gap up open unless it remains above 6060/70 for at least an hour.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6059NF, TARGET 6029, SL 6089.

4.         If SL hit, buy below 6090NF, target 6121/27, SL 6060.

5.         SL is hit on tf close basis. Now to see if 5100 is taken out. But be careful of volatility.

6.         Nifty likely forming a DT. If so, a BD will give about 6050.

7.         DT break down target of 6050 met. Looks like it will fill up the gap.

8.         Nifty opened up with a gap, made a new high but then reacted to make a higher low before closing slightly +ve (nifty fut closed flat) and also above yesterday's close. However, gap created today was not filled. The SL of 9.30 strategy was hit but the target of reverse trade was not met. The target of break down of a DT identified during the day was met. The total range was only about 34. The daily candle is a morning doji star.

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