Daily_Nifty_VP's View-24/05/13

LEADER POST for Friday (24/05/13)

1.         Supports are at about 5955, 5888 and 5860 while resistances are at about 6010, 6036, 6075, 6100 and 6121. Previous lower levels to watch are 5928 and 5867. Three +WWs give about 6013 (once above 5971), 6104 (once above 6039) and 6166 (once above 6100) (+WWs with higher targets are not mentioned as of now). Three -WWs give about 5050, 5944 and 5881 (-WWs with lower targets are not mentioned presently). Two rising wedges have broken down and can give about 5928/5867 unless nifty reverses from here and goes above 6071. A falling wedge BO can give 6138 unless nifty goes below 5936. A bearish flag can give about 5900 unless it reverses from here and goes above 6040.

Nifty fell sharply again on global clues and just managed to close above 5950 continuing its downmove for the fourth straight day. The weekly candle will most probably be bearish engulfing unless it closes above 6100 on Friday. Even if it closes well above 6035 by 31st May, the monthly candle will be fine. It has taken support from 34 ema on daily chart and the only hope now is a reversal from present level or a sharp reversal from 5880/5920 zone on Friday itself. If it closes below 5900 then next level can be 200 sma, which is at about 5750. A very high value of VIX and PCR have caused sharp and sudden movements in the last few days. Only a noticeable drop in them along with global cues and/or liquidity can take nifty up.

2.         Pre-open data suggests a +ve nifty after a gap up open, unless it remains below 6010 till afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6000NF, TARGET 5955, SL 6030.

4.         Target met without giving chance of an entry.

5.         Targets of first two -WWs of the first post met.

6.         Nifty opened up with a gap but reacted quickly to make a lower high and low than those yesterday before rising again to close -ve but above yesterday's close. The targets of first two -WWs of the first post were met. Also met was target of 9.30 strategy trade but without giving chance of an entry. The entry was available in the afternoon but the target wasn't met again. The daily candle is a hammer while the weekly candle is bearish engulfing.

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