Daily_Nifty_VP's View-23/01/13

LEADER POST for Wednesday (23/01/13)

1.         Supports are at about 6041, 6019, 6012 and 5998 while resistances are at about 6068, 6091 and 6109. The gap created on Friday is at about 6038 and is yet to be filled up. Four likely +WWs give about 6084, 6091, 6119 and 6163 (other +WWs with higher targets are not mentioned as of now). Four likely -WWs give about 6031, 6017, 5996 and 5962 (-WWs with much lower targets are not mentioned presently). A rising wedge seems to have broken down and can give 5990. A bearish flag can give about 6022 unless killed above 6056.

Nifty fell and closed again below 6050 after reacting soon after crossing over psychogical level of 6100. The reversal signal given by yesterday's doji star was confirmed and nifty may go to 6025/6015/5980. The -ve div on daily chart is worrisome. However, I feel that bottom is near by. Be careful of high intraday volatility.

2.         PCR at 1.12 and VIX at 13.89. Pre-open high/low at 6120.55/6048.50 and close at 6052.85. The inverted hammer of 10tf candle may indicate a +ve nifty after a slight gap up open unless it remains below 6048 for at least an hour.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6087NF, TARGET 6114/30, SL 6057.

4.         If SL is hit, sell above 6052NF, target 6022, SL 6082.

5.         SL hit.

6.         Target of first -ww was met.

7.         Nifty opened up with a slight gap but reacted immediately. It made a lower high and low than those yesterday before rising sharply again in the afternoon to close flat and above yesterday's close. The targets of first -ww and the bearish flag of the first post were met even though nifty went above 6056. But the SL of 9.30 strategy trade was hit and the target of reverse trade was just missed. The daily candle is a likely morning star.

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