Daily_Nifty_VP's View-05/11/12

LEADER POST for Monday (05/11/12)

1.         The supports are at about 5684, 5649 and 5568 while the resistances are at about 5702, 5706, 5714 and 5720. Two likely +WWs give about 5751 and 5780 (+WWs with higher targets are not mentioned as of now) while a number of likely -WWs give about 5690/86/84, 5678 and 5634 (-WWs with much lower levels are not mentioned presently). An apparent rising channel seems to have broken down and can about 5600 unless nifty goes above 5800.

Nifty managed to close above 5680 both on daily and weekly basis and thereby gave a bullish undertone. However, daily candle is an Evening Doji Star which is a bearish sign and nifty may go down further if it opens gap down on Monday and also closes well below 5645. In such a case supports of 34 ema and 55 ema/50 sma are at about 5621/5557 and they may hold. Weekly candle is a hammer, which is a bullish sign.

While it is possible that nifty may revisit 5432, which is the gap created on 13/14 Sept, it may have a few surprises up its sleeve and hence one must trade with proper SLs. Nifty now needs to close above 5730 to give hopes of continuation of an uptrend. I feel that next week may be very volatile as bears try to seize control from the bulls. In other words both the evening doji star and the hammer will succeed in that order.

2.         PCR up at 1.09 and VIX down at 13.66. Pre-open high/low at 5945.85/5693.05 and close at 5693.05. The 10tf candle is huge inverted hammer and may indicate a -ve nifty after a flat to slight gap down open.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5766NF, TARGET 5716 SL 5796.

4.         Target of first -ww met. Target of 9.30 strategy met without giving entry, thanks to weird O/H values.

5.         Targets of first 3 -WWs met.

6.         Nifty opened 4 points down, remained flat for a while and then reacted. It made a lower high and low than those on Friday before closing slightly +ve and also slightly above Friday's close. On the other hand, nifty fut opened 20 points up, made a higher high and low than those on Friday and closed -ve but flat as compared to Friday's close. In the process, the targets of first three -WWs of the first post were met as also the target of 9.30 strategy trade. The daily candle is an imperfect hanging man, which can be bearish in immediate term.

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