Daily_Nifty_VP's View-25/07/12

LEADER POST for Wednesday (25/07/12)

1.         Supports are at 5104, 5100 and 5086/84 while about 5095 was previous low on 26/6/12. Resistances are at 5134/35, 5140, 5146, 5156 and 5208. Three likely +WWs give about 5145 (once above 5129), 5159, and 5177 while a -ww gives 5073. Hence, tight SL is name of the game, particularly because expiry is 2 days away. It was a slightly good sign that nifty closed above 5120 but if it closes below 5080 then we may see a further slide. I feel market may be flat on Wednesday.

2.         Tuesday's NS candle has formed a Harami Cross showing strong possibility of a reversal. However, alas, NF doesn't show such a harami. May be this is because expiry is round the corner. The only consolation is that rsi shows mild +ve div on daily chart.

3.         Nifty may open a bit weak. It may also go down to 5090/80 but I intend to buy as I feel it may surprise us by a big upmove today.

4.         Pre-open high/low at 5192.20/4895.70 and close at 5118.40. This is the lowest low and highest range in pre-open in a long time. Also, pre-open's 10tf candle is a long legged doji. So I feel that nifty may go up today even though it opens -ve and goes down further initially, as stated earlier.

5.         AS PER 9.30 STRATEGY, SELL ABOVE 5109NF, TARGET 5086 SL 5139.

‎6.         9.30 strategy target met.

7.         A new +ww gives about 5112NS. +ww target met. (post by LLK - Anyway " -ww gives 5073" was fulfilled).

8.         Nifty opened slightly up but closed -ve after making a lower high and low than yesterday. A big upmove did not come as I had felt although it did rise sharply by about 48 points from the low. It did go down first and then rose as was stated... after pre-open but finally it only flattered to deceive. The target of 9.30 strategy was met. The target of a -ww stated in the first post was also met. A buy call given near the lows yielded a whopping 40 point gain.

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