LEADER POST for Thursday (04/10/12)
1. The
supports are at about 5725/23, 5712 and 5707. Resistances are at about 5737,
5743, 5748, 5759 and 5831. Three likely small +WWs give about 5737/43/63 (+WWs
with higher targets are not mentioned as of now). Five likely -WWs give about
5724/5711/5705/5687/5650 (-WWs with much lower levels are not mentioned
presently). A bullish flag on daily chart give much higher levels unless killed
below about 5400. Two likely ATs (or slightly rising wedges) give 5800+ or
5640/5557 in case of a BO or BD. The daily chart still shows -ve div though one
more green daily candle with a new high/close may kill it.
Nifty made a new
high and closed at a new high on Wednesday. The bearishness indicated by the
-ve div on daily chart and previous weekly star candle seems to be vanishing
slowly. However, this week's candle will only decide whether it becomes a
weekly evening star. What's more, Wednesday's candle is also a Doji Star and
can become an Evening Star if Thursday opens below 5727 and gives a Red candle.
The trend is thus still uncertain but the only thing certain is strong
liquidity. Trade with a good SL. I feel this is a good time to hedge to begin
with and decide next course of action based on Thursday's and Friday's market.
2. PCR at 1.06 and VIX at 16.50. Pre-open
high/low at 5751.55/5680.50 and close at 5751.55. The 10tf candle is a hanging
man and may indicate a -ve nifty after a slightly gap up open, accompanied with
volatility.
3. AS PER 9.30 STRATEGY, BUY AT/BELOW 5782NF TARGET 5828/44 SL
5752.
4. First target met without giving a chance to enter a trade.
All the +ww targets met soon upon open.
5. Nifty opened up with a gap of about 20 and did not look
back. But, though it made a new high and also closed at a new high, it could
not rise much, the total range being about 55.The
targets of all the +WWs mentioned in the first post were met during open
itself. The first target of 9.30 strategy was also met while the second target
was missed by just 2. One of the ATs also stated in the first post gave its target
upon BO.
The intraday chart of nifty spot values
with 5 min candles is shown below.
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