Daily_Nifty_VP's View-10/07/12

LEADER POST for Tuesday (10/07/12)

1.         Supports are at 5261, 5242/40, 5220 and 5184 while resistances are at 5277/78, 5285, 5316, 5348, 5353 and 5383. A small -WW gives about 5268 (very close) while an older one gives 5225. One +ww gives 5301 while another one gives 5357 once above 5285. However, I don't expect the latter to materialise tmrw. I feel that market will be flat to +ve tmrw. Volatility is to be watched.

2.         Reminder to those who went long at the end of day today - sell immediately after open tmrw if NS/NF opens below today's close i.e. about 5275/5279 or less.

3.         Pre-open high/low at 5575.90/5272.30 and close at 5286.60. It indicates a flat or mildly +ve opening. Also, market has gone up only twice with such a pre-open in the past. I am hoping today to be the third such an up day.

4.         As per 9.30 strategy, buy below 5306NF target 5325/5341 SL 5276. The opening candle was a doji and so caution needed as SL on either side can be triggered. Also take half the normal qty for trading. Note that cmp is attractive and looks an easy bait.

5.         Long holders should watch SL. A number of small -WWs give 5282NF (inside SL so no problem), 5272/68 and 5255. Also sgxnifty made a low of 5257 yesterday and nifty normally visits that.

6.         Nifty opened above yesterday's close as I stated in the first post. However, after remaining in a flat range of 25 points for over 4 hours, it broke out. It not only made a higher low and a higher high but also a new high. In the process it met both +ww targets. What's more, it also more than met both the targets of 9.30 strategy. So, yesterday's decision to carry longs was a wise one. However, nifty could not close above the resistance level of 5348 (made a high of 5348.05). Luckily, it did not go down to visit yesterday's low of sgxnifty and thereby giving targets of all three -WWs mentioned earlier.

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