Daily_Nifty_VP's View-03/10/12

LEADER POST for Wednesday (03/10/12)

1.         The supports are at about 5717, 5690/88, 5665, 5619 and 5604. Resistances are at about 5722, 5726, 5742, 5828 and 5864. I feel two important levels among these are 5828 and 5690. One likely +WW gives about 5738 (+WWs with higher targets are not mentioned as of now). Four likely -WWs give about 5712/5706/5689/5652 (-WWs with much lower levels are not mentioned presently). A bullish flag on daily chart give much higher levels unless killed below about 5467. A likely AT gives about 5887 or 5519 in case of a BO or BD. The daily chart still shows -ve div.

Though Nifty did not make a higher high on Monday than that on Friday, it has closed at a new high. The bearishness indicated by the formation of Topping Tails on daily chart along with a -ve div and previous weekly star candle also seems to be vanishing slowly. However, this week's candle will only decide whether it becomes a weekly evening star. The trend is thus still uncertain but the only certain thing is strong liquidity.

2.         PCR at 1.06 and VIX at 16.34. Pre-open high/low at 6156.40/5457.50 and close at 5727.70. The 10tf candle is the largest (700 high) in a long time and is a doji. It may indicate a -ve nifty after a slightly gap up open with volatility.

3.         AS PER 9.30 STRATEGY, SELL AT/ABOVE 5751NF TARGET 5720/04 SL 5781.

4.         Target of +ww met at open itself.

5.         Two small +WWs give 5730/38.

6.         First +ww target met. One more +ww gives 5750.

7.         Nifty opened up with a small gap, made a higher high and a higher low than those on Monday and, in the process, made a new high and closed at a new high too, a mildly +ve close. However, the total range being only about 26, neither the target nor the SL of 9.30 strategy was hit. The target of +ww mentioned in the first post as well that of first +ww identified during the day were met. Today's candle is doji star and threatens to become an evening star depending upon Thursday's open/candle.

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