Daily_Nifty_VP's View-11/10/12

LEADER POST for Thursday (11/10/12)

1.         The supports are at about 5646/43 and 5607. Resistances are at about 5657, 5674, 5717 and 5727. Three likely +WWs give about 5702 (once above 5654), 5713 (once above 5665) and 5744 (once above 5690). +WWs with higher targets are not mentioned as of now. A likely -WW gives about 5604 (-WWs with much lower levels are not mentioned presently). A rising channel mentioned in Wednesday's post seems to have broken down and now threatens to give about 5000. Also, a rising wedge can give about 5557 in case of a BD while two falling wedges give about 5715 and 5808 in case of a BO.

Nifty closed -ve on Wednesday and now indicates that lower levels are possible. The Harami Cross mentioned yesterday failed. Now, 5630-40 and 5725-35 are crucial zones and a daily close above/below them will give clear indication of the future trend. First sign of reversal and continuation of an uptrend would be if nifty opens above 5672 (preferably 5687) and closes above 5709 (preferably 5729).

2.         PCR down at 0.99 and VIX at 16.83. Pre-open high/low at 5666.35/5622.50 and close at 5663.50. This may indicate a +ve nifty after a slight gap up opening.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5679NF, TARGET 5711.50 SL 5649.

4.         Target of first +ww met.

5.         Forgot to mention that 9.30 strategy target met.

6.         Target of second +ww met.

7.         Nifty opened up with a small gap (though nifty fut opened a bit down), made a lower low than that yesterday thereby giving hint of a bearish tone and remained in a horizontal channel of height 27 before suddenly breaking out. It made a higher high than that yesterday before closing +ve and also above yesterday's close as was indicated by the pre-open data. The targets of first two +WWs and the first falling wedge mentioned in the first post were met as also the target of 9.30 strategy trade. Today's candle, though large and green, doesn't give confidence about continuation of uptrend yet.

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