Daily_Nifty_VP's View-06/07/12

1.         For Friday (06/07/12), supports are at 5325/22, 5315/10, 5287/86, 5244 and 5214 while resistances are at 5335, 5358, 5385, 5398 and 5405. A likely flag gives about 5345 unless nullified below about 5316. As mentioned elsewhere, indicators closed at medium level and hence either side move is possible tmrw. But four -WWs threaten 5282 once below 5316, 5269 once below 5309, 5257 once below 5307 and 5231 once below 5319. Also, nifty seems to be in a rising wedge with a possible break down level of 5322 and is also in channel with a possible break down level of 5316. It then transpires that if nifty goes below the crucial zone of 5320-10, it may have a break down. Hence, I feel next two days will be important as well as turbulent.

2.         Pre-open high/low at 5567.75/5308.15 and close at 5324.70. The only time market went up on such days in recent past was last friday and once in May. I feel market may react first and then go up

3.         As per 9.30 strategy, sell above 5323.50 target 5295/73 SL 5353.50

4.         NF made a low of 5302 i.e. within 7 points of target. If it goes above 5323.50 from here or from whatever lower level, it's risky to take sell trade later

5.         If target is not met by 10.30/35, it's difficult

6.         I think last friday NS/NF closed at 5278/97 (pl confirm). Monday closed -ve and as per old sentiment it means week should close -ve. But this year has seen major sentiments being thrown out. Let's hope it closes +ve today and give a green weekly candle.

7.         Nifty opened lower than yesterday's close, broke yesterday's low, could not break yesterday's high and also closed -ve. Today it almost went upto 3rd support and could not break first resistance. This as well as the apparent rising wedge, channel and the -WWs mentioned in my first post above suggest a -ve to flat bias for monday and perhaps for next week on account of consolidation, unless it breaks above 5342 and continues its journey up. The medium trend is, however, +ve since this week closed +ve.

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