Daily_Nifty_VP's View-05/07/12

1.         For Thursday (05/07/12), supports are close to each other at 5297/94, 5285, 5278/76, 5268 and 5193 while resistances are at 5305/06, 5318, 5348, 5369/70 and 5376. A small +ww gives 5320 while a likely flag gives 5333 unless killed below 5290. I feel, nifty is on the verge of a break-out and it is only a question of how much more market tries our patience.

2.         Pre-open high/low at 5314.40/5294.80 and close at 5297.05. This is a very narrow range and is inconclusive for day's trend. May be listless since there were no clues from US and Asian markets are lacklustre.

3.         As per 9.30 strategy, buy below 5333NF target 5351 SL 5303. first 5tf candle is a doji. Such days are generally volatile and may take out SLs on either side, so trade with half of your normal qty.

4.         NS must cross above 5305/6, 5310 and 5318 and not go below 5295 and 5289.

5.         Nifty did not breach second support of 5285 nor did it cross third resistance of 5348. Once it crossed today's previous high of about 5312, it gave a mini break-out and went up by 21 point. It thus made a new high today and in the process gave targets of +ww and flag mentioned in the first post. As mentioned above 5319-5336 has acted as supply zone so far. Indicators are at medium levels and hence either way move is possible tmrw considering that a number of -WWs threaten much lower levels once nifty is below 5316. So, one needs to be cautious now.