Daily_Nifty_VP's View-27/05/13

LEADER POST for Monday (27/05/13)

1.         Supports are at about 5974, 5962, 5942, 5919, 5888, 5877 and 5860 while resistances are at about 6001, 6019, 6036, 6044, 6060, 6082, 6101 and 6124. Previous lower levels to watch are 5928 and 5867. Four +WWs give about 6018 (once above 5971), 6020 (once above 5962), 6024 (once above 5957) and 6041 (once above 5951) (+WWs with higher targets are not mentioned as of now). Two -WWs give about 5880 and 5836 (-WWs with lower targets are not mentioned presently). Two rising wedges have broken down and can give about 5928/5867 unless nifty goes up and remains above 6083. A falling wedge BO can give 6138 unless nifty goes below 5928.

Nifty recovered a bit but its bearish sentiment may not be over. The weekly candle is big bearish engulfing. However, daily candle is a hammer and there is a mild +ve div on daily chart. Also, if nifty closes well above 6035 by 31st May, the monthly candle will be fine. The only hope for bulls now is a reversal from present level or a sharp reversal from 5920/5860 zone in one day. 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. Trade carefully as expiry is near.

2.         PCR flat at 1.12 and VIX down at 17.70.

3.         Pre-open data suggests a +ve nifty after a slight gap up open unless it remains below 5989 till afternoon.

4.         AS PER 9.30 STRATEGY, BUY BELOW 5989NF, TARGET 6034, SL 5959.

5.         Targets of first three +WWs of the first post met.

6.         Target met without giving a chance of an entry.

7.         Target of fourth +ww of the first post also met.

8.         Nifty opened up with a slight gap but rose quickly and then remained flat till afternoon before making a sharp upmove again. It thus made a higher high and low than those on Friday before closing strongly +ve and also strongly above Friday's close. The targets of all the four +WWs of the first post were met. The 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.