Daily_Nifty_VP's View-09/05/13

LEADER POST for Thursday (09/05/13)

1.         Supports are at about 6024, 6010, 5995, 5978 and 5960 while resistances are at about 6095 and 6130. Previous lower and higher levels to watch are 5928 and 6111. A likely +WW gives about 6120 (+WWs with higher targets are not mentioned as of now). Six likely -WWs give about 6049 (once below 6070), 6042 (once below 6073), 6035 (once below 6071), 6025 (once below 6086), 6023 (once below 6059) and 5987 (once below 6026) (-WWs with lower targets are not mentioned presently). A bullish flag can give much higher level unless killed below 5700. A rising wedge can give about 5936 in case of a BD below 6061.

Nifty rose again to close above 6050, at a new high since 5th Jan and is bullish. But it reacted from the TL from Nov '10 to Jan '13 and may go down a bit more. Also, the daily candle is a hanging man, a likely bearish sign. A close below 6064, particularly with a gap down open will confirm it. However, both the weekly and monthly candles are bullish and it may not go down much. 6115-30 may be a resistance zone this week while 5980 may provide support on Thursday. A weekly close above 6075/6083/6112 will be bullish. A daily close below 5950 may be bad. Bulls will hope that the improved micro-economic situation in India will take market further up. Only global cues and/or liquidity (including from DIIs) can take nifty further up. Volatility may remain high.. Also, the daily candle is a hanging man, a likely bearish sign. A close below 6064, particularly with a gap down open, will confirm it. However, both the weekly and monthly candles are bullish and it may not go down much. 6115-30 may be a resistance zone this week while 5980 may provide support on Thursday. A weekly close above 6075/6083/6112 will be bullish. A daily close below 5950 may be bad. Bulls will hope that the improved micro-economic situation in India will take market further up. Only global cues and/or liquidity (including from DIIs) can take nifty further up. Volatility may remain high.

2.         PCR up at 1.22 and VIX up at 16.76. Pre-open data suggests a -ve nifty after a slight gap up open unless it remains above 6102 till afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6083NF, TARGET 6044, SL 6113.

4.         Target of 9.30 strategy trade met.

5.         Targets of first two -WWs met.

6.         Nifty opened up with a small gap but reacted immediately. It tried to make a recovery but reacted again. It made a higher high and low than those yesterday before closing -ve and also below yesterday's close. The targets of first two -WWs of the first post as well as that of 9.30 strategy trade were met.

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