Daily_Nifty_VP's View-06/11/12

LEADER POST for Tuesday (06/11/12)

1.         The supports are at about 5688, 5675 and 5553 while the resistances are at about 5707 and 5745. A likely +WW gives about 5730 (+WWs with higher targets are not mentioned as of now) while two likely -WWs give about 5687 and 5673 (-WWs with much lower levels are not mentioned presently). A bullish flag can give higher level unless killed below 5693.

Nifty managed to hold 5680 on Monday and also close +ve. The daily candle is an imperfect hanging man, which can be bearish. While it is possible that nifty 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. Nifty now needs to close above 5730 to give hopes of continuation of an uptrend. A daily close below 5680 and then 5630 will take nifty down further.

2.         PCR up at 1.11 and VIX up at 14.63. Pre-open high/low at 5735/5683.05 and close at 5694.10. This may indicate a -ve nifty after a slight gap down open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5740NF, TARGET 5771/91 SL 5710.

4.         A -ww has now developed which gives 5697 once below 5717.

5.         Target of -ww identified earlier met.

6.         Targets of +ww and the bullish flag of the first post as well as that of 9.30 strategy met.

7.         Nifty opened down with a small gap but went up thereafter. It did react again but could not make a new low and then rose sharply again to make a higher high, finally closing +ve and also above yesterday's close. In the process, targets of +ww and the bullish flag mentioned in the first post as well as that of 9.30 strategy trade were met.

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