Daily_Nifty_VP's View-03/06/13

LEADER POST for Monday (03/06/13)

1.         Supports are at about 5961, 5939, 5915 and 5865 while resistances are at about 5997, 6018, 6054, 6118 and 6145. Two likely +WWs give about 6073/6187 (once above 5908, which is yet to be reached) (+WWs with higher targets are not mentioned as of now). A likely -WWs give about 5930 (-WWs with lower targets are not mentioned presently). Two rising wedges have broken down and can give about 5936 unless nifty remains above 6145. A complex HnS can give 5936/5867 unless nifty reverses and goes above 6138/63. A bearish flag gives lower level unless killed above 6030.

Nifty fell sharply breaking below all support levels and has apparently turned very bearish. The daily candle is a big, bearish Marubuzo, the weekly candle is an inverted hammer cum gravestone doji while the monthly candle is an inverted hammer. All these are bearish signs. The only consolation on weekly chart is that the doji is not ideally placed to suggest extreme bearishness and that previous week's low wasn't broken in spite of similar volumes as last week. Also, VIX and PCR seem to be moderating. Only global cues and/or liquidity can save nifty from more severe fall.

2.         Pre-open data suggests a +ve nifty after a slight gap up open unless it remains below 5997 till afternoon.

3.         Chart data does not tally with odin data since odin shows a freak high of 6080NF.

4.         AS PER 9.30 STRATEGY, BASED ON ODIN DATA, BUY BELOW 5989NF, TARGET 6065, SL 5959.

5.         AS PER 9.30 STRATEGY, BASED ON CHART DATA, SELL ABOVE 6030NF, TARGET 5974, SL 6060.

6.         Target of 9.30 strategy based on chart data met without giving chance of an entry.

7.         SL of 9.30 strategy as per odin data hit. However, due to freak high value, target remains 5974 and SL 6082.

8.         Target of -ww and that of BD of first rising wedge and first HnS of the first post met.

9.         Nifty opened up with a small gap but quickly reacted and kept sliding down. It not only made a lower high and low than those on Friday but also a new low since 3rd May. The targets of -ww and BD of first rising wedge and first HnS of the first post were met. Also met was target of 9.30 strategy trade (based on chart data) but without giving chance of an entry.

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