Daily_Nifty_VP's View-19/12/12

LEADER POST for Wednesday (19/12/12)

1.         Supports are at about 5886, 5843, 5822, 5817 and 5799 while resistances are at about 5901 and 5917. Other levels to watch are 5925 and 5965. Four likely +WWs give about 5925, 5940, 5970 and 6010 (once above 5859) (+WWs with higher targets are not mentioned as of now). A likely -ww gives about 5873 (other -WWs with lower targets are not mentioned presently). Two bullish flags can give about 5944 and more unless killed below 5847.

Nifty closed above 5888 again and gave a bullish sentiment. However, it is not out of the woods yet. The daily candle is an imperfect hanging man, which can be bearish. Nifty must close above 5925 first and then 5965 to become bullish again. If nifty closes below 5827, it may be worrisome. Nifty may be very choppy for a few more days. Hence trade with strict SLs.

2.         PCR up at 1.07 and VIX down at 14.44. Pre-open high/low at 5917.30/5896.80 and close at 5917.30. The Marubuzo 10tf candle may indicate a +ve nifty after a small gap up open.

3.         Target of first +ww met within two min of open.

4.         AS PER 9.30 STRATEGY, BUY BELOW 5970NF, TARGET 5996/6010, SL 5940. BUT TREAT 5944 AS ANOTHER TIGHT SL ALSO.

5.         If SL is hit, sell above 5933NF, target 5906/5897, SL 5963.

6.         Nifty opened up with a small gap, made a higher high and low than those yesterday and closed +ve as indicated by pre-open data and also above yesterday's close. However, nifty fut closed -ve. In the process, target of first +ww of the first post was met while that of second +ww was just missed by 0.6. However, SL of 9.30 strategy trade was hit but target of reverse trade was not met. The daily candle is an evening star.

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