Daily_Nifty_VP's View-28/02/13

LEADER POST for Thursday (28/02/13)

1.         Supports are at about 5788, 5767 and 5724 while resistances are at about 5824, 5843 and 5907. The two gaps yet to be filled are at 5727 and 5648. Six likely +WWs give about 5839, 5856, 5864 (once above 5821), 5875, 5888 (once above 5818) and 5955 (other +WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5787 and 5766 (-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 5815. Another falling channel seems to have broken out and can give 5838 unless nifty goes below 5735. A falling wedge also seems to have broken out and can give about 5870 unless nifty goes below 5720. A bullish flag can give about 5858 unless killed below 5774. A rising channel can give about 5750 in case of a BD unless nifty goes up and remains above 5823. A HnS can give about 5550 in case of a BD unless nifty goes up and remains above 5970.

Nifty closed just below 5800 and can still be bearish. However, there is a mild +ve div on all indicators and the daily candle is a bullish Harami. Two unfilled gaps on higher side are 5855 and 5943. If nifty closes above 5900, it may go up further. Only global clues and/or liquidity (including from DIIs) can save nifty. Volatility will be high, Thursday being a budget and expiry day.

2.         PCR at 0.79 and VIX at 16.23. Pre-open data suggests a flat to -ve nifty after a gap up open unless nifty goes and remains above 5870 for some time.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5821NF, TARGET 5795, SL 5851.

4.         Target of first +ww was met soon after open.

5.         9.30 strategy target met.

6.         Target of first -ww also met.

7.         Target of second -ww also met.

8.         The rising channel BD also gave its target.

9.         Nifty opened gap up and remained flat for about two hours before falling sharply. It thus made a higher high and lower low than those yesterday before closing strongly -ve and also below yesterday's close. The targets of first +ww and both the -WWs of the first post were met as also the target of BD of a rising channel. The daily candle is a bearish engulfing to last two days' candles and can be a Last Engulfing Bottom, a likely reversal sign.

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