Daily_Nifty_VP's View-05/06/13

LEADER POST for Wednesday (05/06/13)

1.         Supports are at about 5909, 5899, 5873 and 5860 while resistances are at about 5956, 5995, 6003, 6032 and 6088. A number of likely +WWs give about 5973 (once above 5939), 5988 (once above 5911), 5996 (once above 5923) 5984/6040 (once above 5903) and 6060/6083 (once above 5935) (+WWs with higher targets are not mentioned as of now). (-WWs with lower targets are not mentioned presently). A rising wedge have broken down and can give about 5867 unless nifty reverses and goes up. A complex HnS can give about 5860 unless nifty reverses and goes up. A falling channel and a wedge can give 6060/6133 upon BO unless nifty goes down again.

Nifty fell once again to close below 5950 and seems destined to fall much more. However, the daily candle is an (imperfect) inverted hammer, a likely reversal sign. It now needs to close above 6032 and 6088 to go up further. VIX and PCR are still high and can cause sharp volatility. Only global cues and/or liquidity can save nifty from more severe fall.

2.         PCR flat at 0.98 and VIX down at 17.26. Pre-open data suggests a +ve nifty after a small gap down open unless it remains below 5908 till afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5910NF, TARGET 5876, SL 5940.

4.         If SL (5940) is hit, buy below 5930NF, target 5965, SL 5900.

5.         SL hit.

6.         Nifty opened down with a small gap and made a new low before rising again. It reacted again but could not make a lower low and then rose sharply to close +ve and also above yesterday's close. The SL of 9.30 strategy trade was hit but the target of reverse trade was not met. The daily candle is a hammer.

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