Daily_Nifty_VP's View-25/10/12

LEADER POST for Thursday (25/10/12)

1.         The supports are at about 5684, 5678, 5661 and 5657 while the resistances are at about 5712, 5722 and 5733. Three likely +WWs give about 5698, 5714 and 5734 (+WWs with higher targets are not mentioned as of now). A likely -WW gives about 5684 (-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 bearish inside bar. Nifty needs to close above 5730 and then 5800 to continue the uptrend. A daily close below 5630 may take it down to 5500. Thursday being expiry day, trade carefully. Otherwise trade in Nov series fut/options.

2.         Considering the inside bar candle of Tuesday, buy > 5722NS and sell < 5658 (risky sell < 5681). Unfortunately nifty may remain within this range and hence no trade unless you are carrying a trade overnight. In that case, I feel one should cover longs at about 5700 and shorts at about 5660. Best gamble may be to buy 5700pe below 5, which could come after 1.30 pm since I feel expiry may be around 5675.

3.         PCR at 1.03 and VIX at 13.71. Pre-open high/low at 5702.85/5667.95 and close at 5688.80. The 10tf candle is a doji and may indicate an uncertain and volatile nifty after a flattish opening.

4.         AS PER 9.30 STRATEGY, BUY BELOW 5707, TARGET 5730/44 SL 5677.

5.         Target of first +ww met.

6.         Nifty opened flat, went up a bit and then reacted sharply before recovering again. However, in spite of being an expiry day, total range was only about 31. The target of first +ww of the first post was met but neither the target nor the SL of 9.30 strategy was met. The daily candle is once again an inside bar.

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