Daily_Nifty_VP's View-12/10/12

LEADER POST for Friday (12/10/12)

1.         The supports are at about 5703, 5656, 5646, 5624 and 5582. Resistances are at about 5711, 5720/23, 5728, 5772 and 5812. A likely +WW gives about 5757 (+WWs with higher targets are not mentioned as of now). Four small -WWs give about 5695 (once below 5715), 5668 (once below 5682), 5664 (once below 5676) and 5638 (once below 5666) (-WWs with much lower levels are not mentioned presently). A mild +ve div has developed on daily chart.

A rising channel seems to have broken down and now threatens to give about 5000 unless nifty crosses and remains above about 5871. Also, a rising wedge too seems to have broken down and can give about 5542 unless nifty crosses and remains above about 5871. A falling wedges also seems to have broken out and can give about 5815 unless nifty crosses and remains below about 5615. A 74 high bullish flag promises higher levels unless killed below 5669.

Nifty gave a surprise on Thursday and rose sharply to close +ve. However, it neither opened above 5672 nor closed above 5709 as mentioned in the post for Thursday. The daily candle, therefore, still does not give confidence about continuation of uptrend. 5630-40 and 5725-35 remain crucial zones and a daily close above/below them may give clear indication of short term trend. If Friday closes well below 5691, weekly evening star gets confirmed and bearish undertone may continue.

2.         PCR at 1.00 and VIX at 16.49. Pre-open high/low at 5842.60/5650.95 and close at 5681.70. This indicates a flat to mildly +ve nifty after a small gap down open.

3.         Targets of first two -WWs met in open itself.

4.         AS PER 9.30 STRATEGY, SELL ABOVE 5702NF, TARGET 5675/58 SL 5732.

5.         if SL is hit buy below 5734NF target 5760/68 SL 5704.

6.         Nifty opened down with a small gap but made a higher high (though nifty fut made a lower high) and higher low than that yesterday. However, it closed -ve and well below yesterday's close. The targets of first two -WWs of the first post were met at open itself. However, SL of 9.30 strategy was hit but target of reverse trade was not met. The daily candle is a Doji. Friday's close didn't convincingly confirm a weekly evening star.

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