Daily_Nifty_VP's View-23/05/13

LEADER POST for Thursday (23/05/13)

1.         Supports are at about 6053, 6033 and 6020 while resistances are at about 6118, 6129, 6156 and 6201. Six +WWs give about 6153 (once above 6094), 6159 (once above 6099), 6194 (once above 6078), 6200 (once above 6116), 6203 (once above 6097) and 6218 (once above 6041, which is yet to be reached) (+WWs with higher targets are not mentioned as of now). Three -WWs give about 6039, 5989 and 5947 (once below 6094) (-WWs with lower targets are not mentioned presently). A rising wedge has broken down and can give about 5976 unless nifty reverses and goes up again. A falling channel BO can give 5230 if nifty goes and remains above 6120. A bullish flag can give much higher level unless killed below 6065 while a bearish flag can give lower level unless killed above 6116.

Nifty fell again and closed below 6100 continuing its bearish sentiment. If it closes below 6080 to begin with and then 6000, it will be a cause of concern for short term uptrend. A very high value of VIX and PCR are causing cause sharp and sudden movements. Only global cues and/or liquidity can take nifty up. Once again, be careful of high volatility as nifty approaches the all time high.

2.         Pre-open data suggests a +ve nifty after a gap down open unless it remains below 6050 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6070NF, TARGET 6032, SL 6100.

4.         Target met without giving chance of an entry.

5.         Target of first -ww and bearish flag of the first post met.

6.         Gap on 15 May filled.

7.         Target of second -ww and that of BD of rising wedge of the first post met.

8.         Nifty opened gap down and kept going down. Targets of first two -WWs, BD of rising wedge and bearish flag of the first post were met. Target of 9.30 strategy trade was also met but without giving chance of an entry.

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