Daily_Nifty_VP's View-06/06/13

LEADER POST for Thursday (06/06/13)

1.         Supports are at about 5891 and 5866 while resistances are at about 5929, 5947, 5976, 6032 and 6087. Five likely +WWs give about 5986 (once above 5893), 5995 (once above 5907), 6001 (once above 5916), 6044 (once above 5896) and 6067(once above 5931) (+WWs with higher targets are not mentioned as of now). A likely -WW can give about 5905 (once below 5938) (-WWs with lower targets are not mentioned presently). A rising wedge has 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. Two falling wedges can give 6060/6130 upon BO unless nifty goes down again. A small HnS can give about 5890 on BD unless killed above 5934.

Nifty rose a bit to close above 5900 but seems destined to fall more. However, the daily candle is a hammer, a likely reversal sign. It now needs to close above 6032 and 6087 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.         Pre-open data suggests a -ve nifty after a gap down open unless it remains above 5895 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5882NF, TARGET 5855, SL 5912.

4.         If SL is hit, buy below 5917NF, target 5944, SL 5887.

5.         SL hit. Buy also triggered.

6.         Targets of -WW and small HnS of the first post were met.

7.         Target of reverse trade also met.

8.         Nifty opened gap down and slid further to make a lower low. It then rose sharply to make a higher high before closing +ve but below yesterday's close. The targets of -WW and the small HnS of the first post were met. The SL of 9.30 strategy was hit and the target of the reverse trade was met. The daily candle is a Doji.

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