Daily_Nifty_VP's View-23/10/12

LEADER POST for Tuesday (23/10/12)

1.         The supports are at about 5711, 5693, 5669 and 5627 while the resistances are at about 5726 and 5784. Three likely +WWs give about 5726, 5739 and 5758 (+WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5703, 5684 and 5638 (-WWs with much lower levels are not mentioned presently). A DT seems to have broken out and can give 5800+ if nifty doesn't go below 5634.

The daily candle is a bullish engulfing one. What's more, it seems to have formed a "Last engulfing Bottom", which is bullish, though it is not exactly at the bottom of a downtrend. Hence bulls still seem to be in some control.

Nifty closed above 5713 but needs to close above 5730 and then 5800 to continue the uptrend. A daily close below 5630 may take it down to 5500. Expiry being 2 days away, trade carefully. Otherwise trade in Nov series fut/options.

2.         PCR up at 1.03 and VIX down at 13.04. Pre-open high/low at 5777.90/5713.85 and close at 5715.65. The 10tf candle is an inverted hammer (topping tail) and may indicate a flat to -ve nifty after a flat opening, accompanied by volatility.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5694, TARGET 5672/56 SL 5724. BE CAREFUL AS SL MAY BE HIT DUE TO VOLATILITY. BEST TO ENTER CLOSER TO SL THAN USUAL 30 DIFFERENCE.

4.         Target of first -ww of first post met.

5.         Target of second -ww considered met.

6.         Nifty opened flat, barely made a lower high and higher low than those yesterday but closed -ve and also below yesterday's close as was indicated by the pre-open data. The targets of first two -WWs of the first post were met. However, target of 9.30 strategy trade was not met. The daily candle is an inside bar.

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