Daily_Nifty_VP's View-24/01/13

LEADER POST for Thursday (24/01/13)

1.         Supports are at about 6023, 6013 and 6005 while resistances are at about 6098 and 6120. The previous high of about 6101 is a level to watch. Three likely +WWs give about 6072, 6079, 6093 and 6181 (other +WWs with higher targets are not mentioned as of now). Four likely -WWs give about 6004, 5988, 5978 and 5963 (other -WWs with much lower targets are not mentioned presently). Two rising wedges seem to have broken down and can give 5990/40 unless nifty goes and remains above 6100/6118. A falling channel seems to have broken out and can give about 6100 unless nifty goes below 6047 in which case it can go down to 6016. A bullish flag can give about 6097 unless killed below 6038.

Nifty fell again but managed to recover and close above 6050. However, the daily candle is a likely morning doji star. An open above 6055 and close at/above 6065 on Thursday will confirm it and make nifty bullish. The -ve div on daily chart is still worrisome. Nifty is once again in a range of 5950-6100. Three dojis/stars in last four days shows uncertainty in the market. Be careful of high intraday volatility and avoid trading within the range.

2.         Pre-open high/low at 6055.75/6025.50 and close at 6046.20. This may indicate a -ve nifty after a slight gap down open unless it remains above 6065 for at least an hour.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6054NF, TARGET 6019/04, SL 6084.

4.         Bearish flag gives about 6013.

5.         Bearish flag target met.

6.         9.30 strategy trade target met but without giving chance of an entry.

7.         Sell (as per 9.30 strategy) triggered. But be careful.

8.         9.30 strategy target reached again after giving chance of entry.

9.         Nifty opened down with a slight gap and then reacted making a lower high and low than those yesterday before closing -ve (as indicated by the pre-open data) and also below yesterday's close. In the process, the target of first -ww of the first post was narrowly missed but the target of 9.30 strategy trade was met twice, first without giving a chance for an entry and later, when nifty recovered sharply and gave chance for an entry. The falling channel break out mentioned in the first post proved false and nifty returned to the bottom of the channel. Also met was target of a bearish flag identified during the day.

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