Daily_Nifty_VP's View-09/04/13

LEADER POST for Tuesday (09/04/13)

1.         Supports are at about 5532 and 5500 while resistances are at about 5554, 5589 and 5671. Two likely +WWs give about 5633 (once above 5532) and 5657 (once above 5596) (other +WWs with higher targets are not mentioned as of now). A likely -WW gives about 5494 (-WWs with much lower targets are not mentioned presently). A falling wedge can give about 5643 if nifty goes and remains above 5570.

Nifty fell again and closed below 5550, thereby hinting at further bearishness. However, +ve div still persists on daily chart. Also, the daily candle is an inverted hammer, a possible reversal sign. For confirmation of a reversal, nifty must close above 5575, preferably with a gap up open. Only global cues and/or liquidity (including from DIIs) can save nifty.

2.         PCR slightly down at 0.8 and VIX up at 16.77. Pre-open data suggests a +ve nifty after a gap up open unless it goes below 5532.

3.         First 5tf candle is a Doji hence be alert.

4.         AS PER 9.30 STRATEGY, BUY BELOW 5606NF, TARGET 5627/43, SL 5576.

5.         If SL is hit, sell above 5565NF, target 5543, SL 5595.

6.         SL hit after target missed by less than 5 points.

7.         Target of reverse trade met.

8.         Target of -ww met.

9.         Nifty opened gap up, made a higher high and then fell sharply in the afternoon thereby making a lower low before closing -ve and also below yesterday's close. The target of -ww of the first post was met. However, the target of 9.30 strategy was just missed and then its SL was hit and then target of reverse trade was met. The daily candle is an outside bar.

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