LEADER POST for Friday (05/10/12)
1. The
supports are at about 5785, 5775/72, 5755, 5746 and 5727. Resistances are at
about 5791, 5799, 5815 and 5825. +WWs with higher targets are not mentioned as
of now. Four likely -WWs give about 5722/5709/5700/5679 (-WWs with much lower
levels are not mentioned presently). A bullish flag on daily chart give much
higher levels unless killed below about 5400. A likely AT gives about 5855 in
case of a BO while two likely rising wedges give about 5640/5557 in case of a
BD.
Nifty made a new
high and closed at a new high on Thursday and seems to have nullified the
bearishness indicated by the -ve div on daily chart, previous weekly star
candle and Wednesday's Doji Star unless Friday closes well below 5691. The -ve
div visible on daily chart has also vanished. However, since most if not all
reforms have been announced, I feel it is wise to hedge, if not short upon
opening, to begin with and decide next course of action based on Friday's and
next Monday's market.
2. PCR at 1.09 and VIX at 16.44. Pre-open
high/low at 5816.80/5757.90 and close at 5815. 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, SELL AT/ABOVE 5876NF TARGET 5811/5792
SL 5906. Note that first target is already met hence trade carefully.
4. Second target also almost met.
5. Considering today's "crash", all -ww targets of
first post met as also those not mentioned.
6. Nifty opened up with a gap as indicated in the first post
but the high reached in first five min. was never crossed. Then an erroneous
trade took nifty down by about 15% and then, though it recovered a great deal,
it closed -ve and also below Thursday's close as indicated by pre-open data.
The targets of all -WWs stated in the first post were met as also both the
first target of 9.30 strategy. The daily candle is now a hanging man.
The intraday chart of nifty spot values
with 5 min candles is shown below.
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