Daily_Nifty_VP's View-28/06/13

LEADER POST for Friday (28/06/13)

1.         Supports are at about 5608, 5589 and 5568 while resistances are at about 5713, 5724, 5775 and 5816. The unfilled gap on upside is at 5823 and the previous lows to watch are 5566 and 5477. A +WW gives about 5740 (+WWs with higher targets are not mentioned as of now). Four -WWs give about 5671, 5669, 5628 (once below 5693) and 5555 (once below 5707) (-WWs with lower targets are not mentioned presently). A bullish flag can give higher level unless killed below 5655.

Nifty rose sharply but could not close above 5700. The weekly and monthly charts are bearish. However, daily chart has +ve divergence. If this week closes below about 5625, further fall looks certain. Bulls can hope for some recovery only if this week closes above about 5625 but close above 5705 is preferable, psychologically. VIX and PCR are still high and can cause sharp volatility. Only global cues and/or liquidity can take nifty up.

2.         Immediate trend up, target 5804NF, SL 5742. Wait for 9.30 data.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5766NF, TARGET 5804, SL 5736.

4.         Target of +ww met in the open itself.

5.         Target met.

6.         Gap at 5823 filled up.

7.         Target of bullish flag of the first post met.

8.         Encouraged by the gas price hike by the govt., which would reduce subsidy, nifty opened up with a big gap, didn't look back and kept rising sharply. It made a new high since 19/06 and closed strongly +ve and at a new high since 17/06. Targets of +WW and bullish flag of the first post were met easily as also the target of 9.30 strategy trade. In the process, the gap created on 20/06 was also filled. The daily candle is a bullish Marubuzo while monthly candle is an imperfect hammer.