Daily_Nifty_VP's View-02/07/12

1.         For Monday (02/07/12), supports are at 5272/70, 5264/63, 5259, 5185, 5145 and 5123 while resistances are at 5291/92, 5299, 5305/06 and 5325. An upper zone to watch is 5370-90. Actually 5320-5400 has been a supply zone in the past one year. There is a +ww that gives 5375 but point 5 at 5010 was never reached. Sgxnifty closed at 5328 and we may see a small gap up. Thereafter, it is crucial to see how market behaves.

2.         Pre-open high/low at 5284.95/5252.60 and close at 5283.85. The range is one of the smallest and while it may indicate that there is still an upmove possible, difficult to say upto what or how would be the overall movement in the day.

3.         As per 9.30 strategy, sell above 5311NF target 5271/5251 SL 5341

4.         In general, it is futile to sell when a market is bullish and vice versa. If you sell NF, you must know when to sell and cover, which is difficult. If you buy PE, it is worse. PE doesn't always make a new high when NF makes a new low but even when NF comes near previous high, PE can make a new low. Hence, waiting for dips to buy is better.

5.         I feel we may see at least 5260/50......may be tmrw.