Daily_Nifty_VP's View-12/03/13

LEADER POST for Tuesday (12/03/13)

1.         Supports are at about 5928 and 5914. Resistances are at about 5950, 5975, 5993 and 6046 while previous higher level to watch is 5991. Two likely +WWs give about 5961 (once above 5933) and 5998 (other +WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5922, 5897 (once below 5925) and 5851 (-WWs with much lower targets are not mentioned presently). Two rising wedges seem to have broken down and can give about 5893/5805 unless nifty remains above 6014/6032. A HnS BD gives about 5885 unless nifty remains above 5962. A IHnS BO gives about 6075/6100 unless nifty remains below 5909.

Nifty once again closed just below 5950. The daily candle is an imperfect morning doji star, a likely reversal sign. It will be confirmed if nifty closes well below 5945, preferably after a gap down open. There is a danger of nifty having made a double top on Monday. However, +ve signs such as last week's bullish engulfing candle, a +ve div in RSI on weekly chart, etc. point to higher levels. As such, 5998/6050 on higher side and 5828 on lower side are crucial levels. Only global clue and/or liquidity (including from DIIs) can take nifty further up.

2.         PCR up at 1.18 and VIX up at 14.25. Pre-open data suggests a flat to -ve nifty after a flat open unless it remains above 5960.

3.         AS PER 9.30 STRATEGY, SELL BELOW 5941NF, TARGET 5917, SL 5971.

4.         SL hit.

5.         ……SL for (reverse) long is about 5953NF.

6.         SL of reverse trade also hit. Trend down again.

7.         Target of first -ww met.

8.         Target of second -ww met.

9.         Target of original 9.30 strategy trade met.

10.       Nifty opened flat and remained flat for over two hours before reacting to make a lower high and low than those yesterday and closing -ve and also below yesterday's low. The targets of first two -WWs and BD of a rising wedge of the first post were met. Also considered met was target of BD of HnS. But the SLs of either side trades of 9.30 strategy were hit and then the target of original trade was met. Also, the reversal indicated by yesterday's imperfect morning doji star was confirmed.

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