Daily_Nifty_VP's View-26/10/12

LEADER POST for Friday (26/10/12)

1.         The supports are at about 5688 and 5627 while the resistances are at about 5714, 5718 and 5722. Two likely +WWs give about 5733 and 5767 (+WWs with higher targets are not mentioned as of now). Two likely -WWs give about 5653 and 5611 (-WWs with much lower levels are not mentioned presently).

The daily candle is once again an inside bar. Nifty has remained in a narrow range for too long and has to break out or down soon. It needs to close above 5730 and then 5800 to continue the uptrend while a daily close below 5630 may take it down to 5500.

2.         PCR at 1.02 and VIX at 13.52. Pre-open high/low at 5704.60/5670.40 and close at 5681.85. This may indicate a flat nifty after a gap down open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5723, TARGET 5754/72 SL 5693.

4.         IF SL IS HIT, SELL ABOVE 5699 TARGET 5668/65 SL 5729.

5.         Yesterday NF made a high at magic no. of 5757 but did not cross it. So short term trend may be down.

6.         Target of first -ww met.

7.         Nifty opened gap down and kept on going down. It made a lower high and low than those yesterday and finally closed -ve and also below yesterday's close. The target of first -ww of the first post was met. The SL of 9.30 strategy triggered but the target of reverse trade was not met. The daily candle is an imperfect hammer while the weekly candle is an inside doji bar once again.

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