Daily_Nifty_VP's View-16/07/12

LEADER POST for Monday (16/07/12)

1.         Supports are at 5217, 5211, 5206/05, 5197, 5171 and 5155 while the previous gap was at about 5149. Resistances are at 5239/42/46, 5252, 5274, 5292 and 5325. A +WW gives about 5271 once above 5242. As mentioned yesterday on another thread, lower TL from 18th june has supported nifty so far. Hence, about 5217 (low of last 2 days) is crucial now. If it is not broken in next 2 days then it means nifty may have made a double bottom on 13/07/12 and is headed up. Also, 50% retracement of fall from Feb is at about 5200.

2.         Pre-open high/low at 5333.50/5172.55 and close at 5232.35. This probably shows a flat to +ve market.

3.         Very misleading opening at 5175NF unlike NS at about 5232. Be careful and wait. ‎9.30 strategy is confusing since H-O is 78. But if I take NS values, one can buy now with target 5271NS and SL 5217NS.

4.         While NS opened mildly +ve, NF showed a freak open of 5175 and that proved to be a bad omen as nifty finally ended down after making a lower high than Friday. The mildly +ve trend indicated by pre-open also reversed after a while. It could not break second resistance and then broke through four support levels. Any further fall will sound alarm bells. 9.30 strategy had to be tried with NS for a change but its SL was triggered. A disappointing day indeed. The only hope is that indicators were at oversold levels when nifty closed.

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