Daily_Nifty_VP's View-22/10/12

LEADER POST for Monday (22/10/12)

1.         The supports are at about 5678, 5662/60, 5650, 5647 and 5632 while the resistances are at about 5687/89, 5697, 5708/09 and 5755. Four likely +WWs give about 5700, 5753, 5764 and 5835 (+WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5672, 5655 and 5615 (-WWs with much lower levels are not mentioned presently). A bullish flag can give 5708 unless killed below 5670.

A rising channel seems to have broken down and can give about 5530 unless nifty recovers and remains above about 5770. A DT can give 5800+ if it breaks out and remains above 5708.

 

The daily candle is an Inside Bar, which could be bullish. The weekly candle is a bullish Doji. However, while daily charts shows hints of a rounded bottom, the weekly charts shows hints of a rounded top. The +ve sign in favour of an uptrend is that daily candles consecutive three days have longer lower wicks, which may mean that bulls are still in some control.

 

Nifty closed just below 5686 and needs to close baove higher levels to confirm end of the recent downtrend. To start an uptrend, to begin with, nifty must close above 5730 and then 5800 to continue uptrend. A daily close below 5630 may take it down to 5500.wever, while daily chart shows hints of a rounded bottom, the weekly chart shows hints of a rounded top. The +ve sign in favour of an uptrend is that daily candles of consecutive three days have longer lower wicks, which may mean that bulls are still in some control.  may take it down to 5500 H

The daily candle is an Inside Bar, which could be bullish. The weekly candle is a bullish Doji. However, while daily chart shows hints of a rounded bottom, the weekly chart shows hints of a rounded top. The +ve sign in favour of an uptrend is that daily candles of consecutive three days have longer lower wicks, which may mean that bulls are still in some control.

Nifty closed just below 5686 and needs to close above higher levels to confirm end of the recent downtrend. To start an uptrend, to begin with, nifty must close above 5730 and then 5800 to continue uptrend. A daily close below 5630 may take it down to 5500.

2.         PCR at 1.01 and VIX at 14.54. Pre-open high/low at 5948/5658.80 and close at 5667.60. The 10tf candle is an inverted hammer and may indicate a +ve nifty after a small gap down open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5694, TARGET 5712/29 SL 5664.

4.         First target of 9.30 strategy met. Targets of first +ww and first -ww also met.

5.         Second target of 9.30 strategy considered met.

6.         At last NS made a new high and closed above 5713.

7.         Nifty opened down with a small gap, made a higher high and lower low than those on Friday (though nifty fut made a slightly higher low) and closed +ve and also above Friday's close as was indicated by pre-open data. In the process, targets of first +ww, first -ww and bullish flag of the first post were met. Both the targets of 9.30 strategy were also met.

The bullish close also obeyed hints given by Friday's inside bar and last week's doji confirming that bulls are still in control. The daily candle is not only bullish engulfing but its close is also above Friday's high.

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