Daily_Nifty_VP's View-17/05/13

LEADER POST for Friday (17/05/13)

1.         Supports are at about 6155, 6133, 6106, 6055, 6041 and 6008 while resistances are at about 6184, 6193, 6219 and 6244. A +WW gives about 6195 (+WWs with higher targets are not mentioned as of now). Three -WWs give about 6137 (once below 6167), 6109 (once below 6142) and 6033 (once below 6183) (-WWs with lower targets are not mentioned presently). A rising wedge break down can give about 5985 if nifty goes and remains below 6133. A bullish flag can give much higher level unless killed below 6045.

Nifty rose again and closed above 6150 and continues to give a very bullish signal. However, nifty has to close well above 6162 on Friday to avoid formation of a Hanging man on weekly chart, a bearish sign. Also, a -ve div has appeared on daily chart and long holders need to be careful. Also, a very high value of VIX and PCR can cause sharp falls and rises as seen this week. Only global cues and/or liquidity can take nifty further up. Once again, be careful of high volatility.

2.         Pre-open data suggests a -ve nifty after a flattish open unless it remains above 6173 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6173NF, TARGET 6138, SL 6203.

4.         If SL is hit, buy below 6196NF, target 6232, SL 6166.

5.         SL hit.

6.         Target of +WW of the first post met.

7.         Nifty opened flattish, tried to go up but quickly reacted. It then remained in a small range of about 31 points before rising suddenly in the last 30min to close +ve and also above yesterday's close. It also made a new high since 13/11/10 and closed at a new high since 12/11/10. The target of +WW of the first post was met but the SL of 9.30 strategy trade was hit near end of day and hence the target of reverse trade was not met. The daily candle is like a Doji.

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