Daily_Nifty_VP's View-16/11/12

LEADER POST for Friday (16/11/12)

1.         Supports are at about 5626, 5604, 5586 and 5580 while Resistances are at about 5644, 5682 and 5690. Three likely +WWs give about 5719, 5726 and 5736 (+WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5622 and 5605 (-WWs with much lower levels are not mentioned presently).

Nifty managed to close above 5630 but below 34 ema and the overall mood seems to be bearish. The daily candle is a hammer, which is a possible sign of reversal. To give sign of a possible reversal, nifty should preferably open gap up on Friday i.e. above 5651, thereby taking out resistance zone of 5633-5643, and also close well above 5667. A daily close below 5630 and then 5580 may take it down further.

2.         PCR down at 1.01 and VIX up at 15.53. Pre-open high/low at 5689.85/5582.40 and close at 5624.80. The 10tf candle is a doji and may indicate an uncertain market after a slight gap down open.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5630NF, TARGET 5605 SL 5660.

4.         IF SL IS HIT, BUY BELOW 5665NF, TARGET 5690 SL 5630.

5.         Target of first -ww met.

6.         SL of 9.30 strategy trade hit.

7.         A bearish flag gives 5693 unless killed above 5638.

8.         Target of second -ww met. Target of bearish flag met.

9.         Target of 9.30 strategy trade met.

10.       Nifty opened down with a small gap, remained flat within a range of about 25 till afternoon before suddenly tanking. The targets of both the -WWs of the first post were met. Also met was target of a bearish flag identified in the afternoon. Nifty made a lower high and low than those yesterday (but nifty fut made a higher high) before finally closing -ve and also below yesterday's close. In view of different behaviour of nifty fut, SL of 9.30 strategy trade was first hit and then SL of reverse trade was also hit and then target of the original trade was met.

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