Daily_Nifty_VP's View-17/07/12

LEADER POST for Tuesday (17/07/12)

1.         Supports are at 5195, 5189/87 and 5139/32 while the previous gap was at about 5149 (29th June). Resistances are at 5227, 5237 and 5270. Two +WW gives about 5257 (once above 5203) and 5272, which is active. The nifty is now poised for a breakdown unless it recovers dramatically. But it may at least go down to fill up the gap on 29th June.

2.         Pre-open high/low 5234.90/5195.30 at and close at 5228.05. Too small range to conclude what the day would bring. But today's range may be 50-80 points.

3.         As per 9.30 strategy sell above 5227NF target 5206 SL 5257 but be careful as today's may be a volatile day and the fact that cmp is above sell level.

4.         Looks like nifty is going down to fill today's gap.

5.         First target met. Today’s gap filled up.

6.         Second target met.

7.         Nifty opened up with a gap but the downtrend was clear soon. Both the targets of 9.30 strategy were met. Nifty made a lower high and low than yesterday, filled up today's gap and finally closed slightly negative. The range was about 60 points i.e. within the range indicated after pre-open. Indicators were slightly oversold at close. Clues from US will decide whether we see a gap up or gap down opening tmrw.

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