Daily_Nifty_VP's View-05/12/12

LEADER POST for Wednesday (05/12/12)

1.         Supports are at about 5861 and 5850 while resistances are at about 5896, 5905 and 5920. The next important level is 5945. A likely +ww gives about 5905 (+WWs with higher targets are not mentioned as of now). Four likely -WWs give about 5850, 5840, 5835 and 5808 (other -WWs with lower targets are not mentioned presently).

Nifty closed +ve but did not make a new high. The daily candle is an Insider Bar, which can be bearish unless nifty goes and remains above 5900. If nifty goes below 5854, one needs to be cautious but if it closes below 5827, it may be worrisome. I feel it may react a bit to consolidate and will be a "buy on dips" story. Much higher levels are expected.

2.         PCR at 1.07 and VIX at 15.91. Pre-open high/low at 5906.60/5662.40 and close at 5906.60. This the largest pre-open candle since 5th Nov. The 10tf candle is a hammer and may indicate a -ve nifty after a gap up open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5965NF, TARGET 5990/6007 SL 5935.

4.         If SL is hit, SELL ABOVE 5927NF, TARGET 5900/5890, SL 5957.

5.         +ww target met in the open itself.

6.         SL hit.

7.         Nifty opened up with a gap, made a higher high (also a new high) and low than those yesterday and closed at a new high. However, it closed -ve as indicated by the pre-open data though above yesterday's close. The target of +ww was met in the open itself. However, as on earlier days, the SL of 9.30 strategy was hit but target of reverse trade was not met. The daily candle is an evening doji star.

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