Daily_Nifty_VP's View-31/10/12

LEADER POST for Wednesday (31/10/12)

1.         The supports are at about 5589, 5580, 5566 and 5533 while the resistances are at about 5603, 5612, 5674, 5682 and 5693. Three likely +WWs give about 5632, 5689 and 5719 (+WWs with higher targets are not mentioned as of now). One likely -WW gives about 5562 (-WWs with much lower levels are not mentioned presently).

Nifty closed below 34 ema and is expected to take support at 55 ema, which is at about 5542. Nifty also broke down from the narrow range it was in for many days. While it is possible that it may revisit 5432, which is the gap created on 13/14 Sept, it may have a few surprises up its sleeve and hence one must trade with proper SLs. To begin with, nifty now needs to close above 5680 to give hopes of an uptrend.

2.         PCR down at 1.03 and VIX at 15.17. Pre-open high/low at 5606.10/5573 and close at 5596.75. This may indicate a flat to +ve nifty after a flat open.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5609NF, TARGET 5587/73 SL 5639.

4.         IF SL IS HIT, BUY BELOW 5648, TARGET 5671/87 SL 5618.

5.         SL HIT.

6.         Nifty opened flat, went down to make lower low and then rose to close +ve and also above yesterday's close as was suggested by the pre-open data. The total range was about 41. The SL of 9.30 strategy trade was hit but the target of reverse trade was not met.

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