Daily_Nifty_VP's View-15/04/13

LEADER POST for Monday (15/04/13)

1.         Support is at about 5516 and 5509 while 5494 is a level to watch. Resistances are at about 5532, 5544, 5569, 5580, 5603 and 5621. Three likely +WWs give about 5620 (once above 5536), 5638 (once above 5561) and 5683 (once above 5578) (other +WWs with higher targets are not mentioned as of now). A -WW gives about 5513 (-WWs with lower targets are not mentioned presently). An AT can give about 5590 upon BO above 5542.

Nifty fell again and closed below 5550, thereby hinting at lower levels to come. However, the daily and weekly candles are morning doji stars, a likely bullish sign. To confirm this reversal, nifty must close +ve, preferably above 5559 and with a gap up open. To begin with, nifty must cross above 5542 and 5603 and for continuation of uptrend, nifty must cross 5650. But for a rally to start, it must close above 5750. Volatility will continue to be high. Only global cues and/or liquidity (including from DIIs) can save nifty.

2.         PCR down at 0.89 and VIX down at 16.45. Pre-open data suggests a +ve nifty unless it remains below 5524 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5531NF, TARGET 5551/65NF, SL 5501.

4.         Target of -ww met during open itself.

5.         Target of 9.30 strategy met.

6.         Second target also met.

7.         Nifty opened gap down and made a lower low but then rose sharply to make a higher high before closing strongly +ve and also above Friday's close though it later reacted due to fall in European markets. The target of -ww of the first post was met as also that of 9.30 strategy trade.

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