Daily_Nifty_VP's View-30/10/12

LEADER POST for Tuesday (29/10/12)

1.         The supports are at about 5644, 5630 and 5609 while the resistances are at about 5680, 5701 and 5717. A number of likely +WWs give about 5675, 5688, 5700, 5706 and 5743 (+WWs with higher targets are not mentioned as of now) while one likely -WW gives about 5576 (-WWs with much lower levels are not mentioned presently).

The daily candle is a doji, which seems to imply that nifty is on the verge of a BO/BD. Nifty has remained in a narrow channel with height of about 85 since 8th Oct and a BO/BD is overdue. It needs to close above 5730 to continue the uptrend while a daily close below 5630 may take it down to 5500. RBI policy review on Tuesday will mean likelyhood of a high volatility and hence trade carefully.

2.         PCR at 1.1 and VIX at 15.12. Pre-open high/low at 5665.60/5578.10 and close at 5656.35. This may indicate an uncertain nifty after a flat opening, perhaps a -ve nifty.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5676NF, TARGET 5652 SL 5706.

4.         IF SL IS HIT, BUY BELOW 5713NF, TARGET 5738/48, SL 5683.

5.         SL hit. Target of first +ww met.

6.         Target of second +ww also met. Now to see whether target of -ww will be met.

7.         SL of 9.30 strategy hit again.

8.         Nifty opened down with a slight gap, tried to go up but the moment credit policy was announced, it tanked and could not recover. It closed -ve and also below yesterday's close as suggested by the pre-open data. In the process it gave targets of two +WWs of the first post. The SLs of 9.30 strategy and its reverse trade were hit and finally the target of original trade was met.

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