Daily_Nifty_VP's View-28/01/13

LEADER POST for Monday (28/01/13)

1.         Supports are at about 6061, 6031, 6023 and 6018 while resistances are at about 6078, 6091, 6114, 6124, 6132 and 6141. The previous high/low levels to watch are 6101 and 5990/40. Three likely +WWs give about 6087, 6099 and 6118 (other +WWs with higher targets are not mentioned as of now). Six likely -WWs give about 6060 (once below 6075), 6036 (once below 6059), 6030 (once below 6046), 6016, 6005 and 5985 (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 up and remains above 6104/6130. A falling channel has broken out and can give about 6100 unless nifty goes below 6015 towards the base of the channel at 5990. A rising channel break down can give about 5840 on...ce below 6018 unless nifty goes up and remains above 6132. A bullish flag can give about 6099 unless killed below 6050.

Nifty rose and again closed above 6050 as hinted in yesterday's thread. The -ve div on daily chart seems to be vanishing. However, the weekly candle is a hanging man, which can be bearish. Bulls will want Monday to open above 6086 and next week to close +ve while bears will want Monday to open below 6074 and next week to close -ve to confirm the bearishness of hanging man. Bearishness may also be confirmed if we see an intraday low below 6021 and a daily/weekly close below 6035/6093 next week. The weekly chart does not have a -ve div. Nifty still remains in the range of 5950-6100. Be careful of high intraday volatility, particularly next week being expiry and avoid trading within the range.

2.         PCR up at 1.12 and VIX up at 14.77. Pre-open high/low at 6082.55/6053.05 and close at 6082.10. This may indicate a +ve nifty after slight gap up open unless nifty remains below 6074 for at least an hour.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6102NF, TARGET 6126, SL 6072.

4.         If SL is triggered, sell above 6060NF, target 6034/20, SL 6090.

5.         SL hit.

6.         Targets of first +ww and first -ww were missed by 0.35 and 1.55 resp.

7.         SL of reverse trade also hit.

8.         Nifty opened up with a slight gap, made a higher high and low than those on Friday before closing flat. The total range was only about 27 points. Still the targets of first +ww and first -ww were almost met. However, the SLs of both the 9.30 strategy trade and its reverse trade were triggered. The daily candle is a doji and an imperfect morning doji star.

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