Daily_Nifty_VP's View-18/06/13

LEADER POST for Tuesday (18/06/13)

1.         Supports are at about 5841, 5818 and 5763 while resistances are at about 5886, 5907, 5940 and 5968. The unfilled gap on upside is at 5878. Three likely +WWs can give about 5935 (once above 5815) and 5972/5997 (once above 5802) (+WWs with higher targets are not mentioned as of now). Four likely -WWs can give about 5836 (once below 5858), 5826 (once below 5852), 5792 (once below 5835) and 5763 (once below 5840) (-WWs with lower targets are not mentioned presently). Two falling channels seem to have broken out and can give 5972/6130 unless nifty goes down again. A bullish flag gives higher level unless killed below 5795.

Nifty rose again to close just above 5850 and thus first condition of Monday closing above 5815 (as mentioned in Monday's thread) was fulfilled. However, weekly chart still shows bearishness. Further strength will be indicated if this week closes above 5840. Also, if June closes above 5893, monthly candle will be a hammer, which may counter May's inverted hammer. However, bullishness may come only if three consecutive days close above 5860 as it may negate the large and complex HnS, which has caused the severe fall in recent past and which is threatening much lower levels. VIX and PCR are still high and can cause sharp volatility. Only global cues and/or liquidity can take nifty further up.

2.         Pre-open data suggests a -ve nifty after a slight gap down open unless it remains above 5842 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5837NF, TARGET 5796, SL 5867.

4.         Targets of first two -WWs of the first post met.

5.         If SL is hit, buy below 5842NF, target 5884, SL 5812.

6.         SL hit.

7.         SL of reverse trade also hit.

8.         Nifty opened down with a small gap and reacted immediately before rising only to fall again. It then rose sharply again to make a higher high before tanking. Finally it closed -ve and also below yesterday's close. The targets of first two -WWs of the first post were met. However, SLs on either side of 9.30 strategy trade were hit but neither side targets were met though target of original trade was narrowly missed.

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