Daily_Nifty_VP's View-29/01/13

LEADER POST for Tuesday (29/01/13)

1.         Supports are at about 6071, 6053, 6032, 6020 and 5995 while resistances are at about 6082 and 6131. The previous high/low levels to watch are 6101 and 5990. Three likely +WWs give about 6098, 6109 and 6146 (other +WWs with higher targets are not mentioned as of now). Five likely -WWs give about 6059, 6057, 6044 (once below 6067), 6036 and 6017 (once below 6048) (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 above 6150. A falling channel has broken out and can give about 6100 unless nifty goes below 5990. A rising channel break down can give about 5840 once below 6018 unless nifty goes up and remains above 6130. A bullish flag can give about 6111 unless killed below 6055.

Nifty closed above 6050 again. However, the daily candle is a doji and an imperfect morning doji star. Therefore, bulls will want Tuesday to open above 6082 and close +ve while bears will want an open below 6074 and close -ve. Nifty is near the top of the range 5990-6100. Be careful of high intraday volatility, particularly due to RBI policy review. I feel one should avoid trading on Tuesday as long as trend is not clear.

2.         PCR 1.12 & VIX 15.17

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6048NF, TARGET 6025/10, SL 6077.40.

4.         If SL is hit, buy below 6093NF, target 6117/31, SL 6063.60.

5.         SL hit. Buy here as SL is close by but target may not be reached.

6.         Target of reverse trade met with very good profit for those who bought.

7.         Targets of first two -WWs and first two +WWs met.

8.         A -ww gives 6074.

9.         -ww target met.

10.       After giving target, SL of reverse trade also hit.

11.       Target of third -ww met.

12.       Nifty opened down with a small gap and rose sharply after about 90 min to make a new high but then quickly reacted by about 70 points to make a lower than yesterday to close -ve and also below yesterday's close. Due to high volatility on account of RBI policy review, the targets of first two +WWs, first three -WWs, the BO of falling channel and the bullish flag of the first post were met. However, the SL of 9.30 strategy trade was and the target of reverse trade was met. Later SL of reverse trade was also hit. Also, met was target of a -ww identified during the day. The daily candle is an inverted hammer.

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