Daily_Nifty_VP's View-22/02/13

LEADER POST for Friday (22/02/13)

1.         Supports are at about 5839, 5823 and 5800 while resistances are at about 5867, 5879, 5889 and 5947. Three likely +WWs give about 5931 (once above 5825, which is not reached yet), 5951 (once above 5879) and 5964 (other +WWs with higher targets are not mentioned as of now). A likely -WW gives about 5820 (other -WWs with much lower targets are not mentioned presently). A falling channel can give about 6110 in case of a BO if nifty goes up and remains above 5872. Another falling channel can give 5910 in case of BO above 5866.

Nifty fell sharply and barely managed to close above 5850 confirming the bearishness signalled by yesterday's morning star. The previous low to watch is 5823 while 100sma is at about 5839. Only if Nifty closes above 6000, it may go up further. If nifty closes below 5850 again, it may go down further. Only global clues and/or liquidity (including from DIIs) can save nifty. As mentioned in the previous posts, volatility has started increasing as budget day approaches.

2.         PCR at 0.88 and VIX at 16.94. Pre-open data suggests a +ve nifty after a gap down open unless it remains below 5837.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5810NF, TARGET 5869, SL 5780.

4.         Target met without giving an entry. Wait for a chance of an entry again. Higher possible target is 5889NF.

5.         Target of 5840of BD of the rising channel being mentioned for the last two weeks met today.

6.         Nifty opened gap down but soon went up. However, it reacted late in the day. It made a lower high and low than those yesterday before closing +ve but below yesterday's low. The target of BD of a rising channel being mentioned since last week was met in the open itself. Also met was target of 9.30 strategy trade but without giving an entry. The daily candle is an imperfect inverted hammer and also an imperfect morning star.

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