Daily_Nifty_VP's View-10/06/13

LEADER POST for Monday (10/06/13)

1.         Supports are at about 5869 and 5827 while resistances are at about 5915, 5929, 5973, 5993, 6032 and 6087. A number of likely +WWs give about 5942 (once above 5905), 5952 (once above 5881), 5961/94 (once above 5912), 5976 (once above 5862), 5990 (once above 5875) and 6008 (once above 5900) (+WWs with higher targets are not mentioned as of now). (-WWs with lower targets are not mentioned presently). Two falling wedges can give 6060/6130 upon BO unless nifty goes down more. A bearish flag can give lower level unless killed above 5935.

Nifty fell again to close below 5900 and still looks bearish. However, the daily candle is an inverted hammer, a very likely reversal sign. Also, a +ve div has developed on STS/CCI on daily chart and on RSI on lower TFs. Nifty needs to close above 6032 and then 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.         PCR flat at 0.99 and VIX flat at 17.35. Pre-open data suggests a +ve nifty after a small gap up open unless it remains below 5908 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5930NF, TARGET 5965, SL 5900.

4.         If SL is hit, sell above 5911NF, target 5875, SL 5941.

5.         SL hit. But be careful as VIX has shot up.

6.         Target of reverse trade met.

7.         Nifty opened up with a gap but started reacting immediately. It tried to recover late in the day but finally made a lower high and low than those on Friday before closing -ve and also below Friday's close. The SL of 9.30 strategy was hit and the target of reverse trade was met.

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