Daily_Nifty_VP's View-01/07/13

LEADER POST for Monday (01/07/13)

1.         Supports are at about 5809, 5800, 5782 and 5763 while resistances are at about 5858, 5877, 5887 and 5907. The unfilled gap on the lower side is at about 5700. Four +WW gives about 5864, 5883, 5939 and 6004 (+WWs with higher targets are not mentioned as of now). A -WW gives about 5758 (once below 5825) (-WWs with lower targets are not mentioned presently). A bullish flag can give higher level unless killed below 5807.

Nifty opened up with a big gap and rose sharply thereafter to close above 5800. The weekly and monthly charts are still bearish though the week closed above 34 ema/50 sma and month closed above 5 sma. The rally of last two days looks more due to short covering than fresh buying. The daily candle is a bullish Marubozo while the monthly candle is an imperfect hammer. Also, weekly chart has developed +ve divergence. If 5864 is crossed, 5900 is possible and if 5932 is crossed, 6000 is possible. At the same time, if about 5571 is crossed on downside, further fall is possible. VIX and PCR are still high and can cause sharp volatility. Only global cues and/or liquidity can take nifty further up.

2.         PCR up at 1.15 and VIX at 17.95. Pre-open data suggests a -ve nifty after a slight gap down open unless it remains above 5835 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5835NF, TARGET 5874, SL 5805.

4.         Target of first +ww of the first post met.

5.         Target of 9.30 strategy met but without getting chance of an entry.

6.         Target of second +ww of the first post met.

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

8.         Nifty opened down with a slight gap and remained in a narrow for a while before taking off again. It made a higher high and low than those on Friday before closing +ve and also above Friday's close. The targets of first two +WWs and the bullish flag of the first post were met. Also met was target of 9.30 strategy trade but without giving chance of an entry. The daily candle is once again a bullish Marubuzo.

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