Daily_Nifty_VP's View-22/11/12

LEADER POST for Thursday (22/11/12)

1.         Supports are at about 5596, 5577 and 5548 while resistances are at about 5627 and 5652. Two likely +WWs give about 5660 and 5751 (once above 5650) (+WWs with higher targets are not mentioned as of now). Four likely -WWs give about 5599, 5586 (once below 5599), 5571 (once below 5596) and 5550 (once below 5600) (other -WWs with lower targets are not mentioned presently). A falling channel mentioned yesterday seems to have broken out and can give about 5750/75 unless nifty goes below 5557 again.

Nifty finally closed above 5600 again after some down day but is not out of the woods yet. Nifty should take out the resistance zone of 5633-5643 first, above which it could be bullish. However, a daily close below 5520 may take it down further to as low as 5400.

2.         PCR at 1.03 and VIX at 15.46. Pre-open high/low at 5648.05/5614.45 and close at 5628.60. It may indicate an uncertain nifty after a gap up opening.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5646NF TARGET 5669/90 SL 5616.

4.         A +ww gives 5630.

5.         SL of 9.30 strategy is hit. Now sell above 5611NF target 5584 SL 5641.

6.         +ww target mentioned above met.

7.         Nifty opened up with a small gap and made a higher high and low than those yesterday. But it remained within a 35 point range, finally closing flat. The SL of 9.30 strategy trade was hit but target of reverse trade was not met. The target of a +ww identified during the day was met. The daily candle is an imperfect evening doji star. However, the same is not true with nifty fut candle.

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