Daily_Nifty_VP's View-19/06/13

LEADER POST for Wednesday (19/06/13)

1.         Supports are at about 5801, 5789, 5764 and 5732 while resistances are at about 5824, 5867, 5892 and 5909. The unfilled gap on upside is at 5878. Four likely +WWs can give about 5837 (once above 5798), 5857, 5934 (once above 5808) and 5943 (once above 5829) (+WWs with higher targets are not mentioned as of now). Two likely -WWs can give about 5760 and 5753 (-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 bearish flag gives lower level unless killed above 5841.

Nifty fell again but managed to close above 5800. The 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.         PCR down at 0.93 and VIX up at 18.29. Pre-open data suggests a +ve nifty after a slight gap down open unless it remains below 5806 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5787NF, TARGET 5759, SL 5817.

4.         If SL is hit, buy below 5817NF, target 5846, SL 5787.

5.         Target of bearish flag of the first post met. I feel risk takers can buy around 5770 NS with SL a bit below 5750. Actually 5777 is the level but I am just banking on a brief visit to 5770 though it may not happen.

6.         SL is hit.

7.         Nifty opened down with a slight gap and quickly reacted to make a lower low. However, it then rose slowly, albeit with whipsaws, but could not make a higher high. Finally it closed +ve and also above yesterday's close. SL of 9.30 strategy trade was hit but target of reverse trade was not met.

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