Daily_Nifty_VP's View-16/10/12

LEADER POST for Tuesday (16/10/12)

1.         The supports are at about 5683, 5657/55, 5633 and 5596. Resistances are at about 5691, 5695, 5709, 5722 and 5746. Five likely +WWs give about 5703/12, 5737, 5742 and 5760 (+WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5669 and 5615 (-WWs with much lower levels are not mentioned presently). A bullish flag can give higher target unless killed below about 5667. An imperfect IHnS can give 5757 and 5815 once nifty remains above 5720.

A rising channel seems to have broken down and can give about 5530 unless nifty recovers and remains above about 5900. A rising wedge seems to have broken down and can give about 5537 unless nifty recovers and remains above about 5900. A falling wedge seems to have broken out and can give about 5815 unless nifty falls and remains below about 5600.

5630 to 5735 remain crucial zones and a daily close above/below them may give indication of the short term trend. Market looks nervous and may not show clear direction till major corporate results are out. For a clear uptrend to emerge, nifty should give a daily close above about 5800. A daily close below 5630 may take it down to 5500.

2.         PCR at 0.97 and VIX at 15.90. Pre-open high/low at 5714.75/5687.25 and close at 5705.60. This may indicate a +ve nifty after a small gap up open.

3.         Targets of first two +WWs as well as that of flag.

4.         AS PER 9.30 STRATEGY, BUY BELOW 5747NF, TARGET 5767/82 SL 5717. However, chart data gives opposite trend, so be careful.

5.         If SL is hit, sell above 5704NF, target 5682, SL 5734.

6.         SL is hit.

7.         Target of first -ww met. Target of 9.30 strategy almost met.

8.         Nifty opened up with a gap but made a higher high and lower low than those yesterday and closed -ve and also below yesterday's close. In the process, targets of the first two +WWs, first -ww and the flag of the first post were met. The SL of 9.30 strategy was triggered and target of reverse trade was met. The daily candle is bearish engulfing.

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