Daily_Nifty_VP's View-07/02/13

LEADER POST for Thursday (07/02/13)

1.         Supports are at about 5956, 5946, 5941 and 5888 while resistances are at about 5967, 5976 and 6126. The previous low level to watch is 5940. Six likely +WWs give about 5973, 5991, 6002, 6048 (once above 5982), 6052 (once above 5977) and 6100 (once above 5989) (other +WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5951 and 5891 (other -WWs with much lower targets are not mentioned presently). The target of BD of a wedge and a rising channel mentioned last week are 5940/5840 unless nifty goes up again and remains above 6060. BO of a falling channel can give about 6110 if nifty goes and remains above 5975. BO of another falling channel can give 5990 if nifty goes up and remains above 5967. However, the bottoms of these two channels are at about 5911 and 5949.

Nifty closed below the crucial level of 6000 once again and is still bearish. The level of 5940 looks certain now. However, if it closes below 5940, next possible levels are about 5895/5828/5762/5680. Only if Nifty closes above 6000 (particularly 6035) it will go up further but is bullish only above a weekly close of 6150. I feel that only global clues and/or liquidity can save nifty. Volatility will gradually increase in February as budget day approaches.

2.         PCR at 0.95 and VIX at 14.26. Pre-open data suggests -ve nifty after a small gap down open.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5941NF, TARGET 5910, SL 5971.

4.         First 5tf candle of NF is a doji and I won't be surprised by a sharp reversal with high volatility. If so, 6000NF is not ruled out.

5.         If SL is hit, buy below 5968NF, target 6000, SL 5938.

6.         SL hit.

7.         Target of first +ww met.

8.         Target of first -ww was also met.

9.         Nifty opened down with a small gap and rose to fill the gap but could not rise much further. It thus made a lower high/low than those yesterday before closing flat but below yesterday's close. The targets of first +ww and first -ww of the first post were met due to volatility. However, SL of 9.30 strategy trade was hit but target of reverse trade was not met. The target of BD of the first rising wedge mentioned last week was also met. The daily candle is a doji/inverted hammer as well as an imperfect morning star.

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