Daily_Nifty_VP's View-19/07/12

LEADER POST for Thursday (19/07/12)

1.         Supports are closely spaced at 5214, 5200, 5177/75/72, 5157/56/53, 5148 and 5136 while the previous gap was at about 5149 (29th June). Resistances are at 5219/20, 5233 and 5241. Two +WWs give about 5272 and 5292, both being active. These are same +WWs posted earlier but targets have increased. As mentioned elsewhere, nifty bounced off lower TL of falling wedge and then gave a BO. Nifty has formed a bullish hammer on daily chart and indicates reversal. It now appears that the downtrend may have ended unless next two days see successive lower lows and, more importantly, -ve closes.

2.         PCR at 1.09 and VIX at 17.44. Pre-open high/low at 5252.35/5160.90 and close at 5249.85. While this indicates an uptrend, since nifty will open up with a good gap, long holders need to keep a TSL, particularly because 10tf pre-open candle is a hammer.

3.         AS PER 9.30 STRATEGY SELL ABOVE 5240NF TARGET 5221 AND SL 5270. HOWEVER, FIRST 5TF CANDLE IS A DOJI AND SHOWS HIGHER LOW THAN ODIN DATA AND IMPLIES UPTREND. HENCE, BE CAREFUL.

4.         As stated in the first post, nifty continued its bullish trend started from yesterday afternoon and opened up with a gap. However, in spite of making a higher high and higher low than yesterday, it remained flat in a narrow range of about 23 points and actually closed negative, although above previous close. Neither the target of 9.30 strategy was met nor was its SL hit, due to its narrow range.

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