LEADER POST for Friday (07/12/12)
1. Supports are at about 5893,
5887, 5868 and 5840 while resistances are at about 5939, 5943 and 5950. The
next important level is 5945. A likely +ww gives about 5960 (+WWs with higher
targets are not mentioned as of now). Three likely -WWs give about 5927, 5918
and 5888 (other -WWs with lower targets are not mentioned presently). A big
bullish flag gives much higher levels unless killed below about 5888.
Nifty closed at a new high again. By
opening gap up and closing +ve, it also defeated the Evening Doji Star formed
on Wednesday. However, Thursday's candle is a long legged Doji which is
considered "top caling" or a bearish sign and gets defeated only if
nifty closes above 5943NS (Thursday' high) for a couple of days. If nifty goes
below 5844, one needs to be cautious but if it closes below 5827, it may be
worrisome. I feel Nifty is now at a make or break level and hence it may be
very choppy as it was on Thursday. Hence trade with strict SLs.
2. PCR flat
at 1.07 and VIX down at 15.24. Pre-open high/low at
5938.80/5850.60 and close at 5934. The 10tf candle is also a long legged doji
and may indicate flat to -ve nifty after a slight gap up open.
3. AS PER
9.30 STRATEGY, SELL ABOVE 5971NF, TARGET 5934/16, SL 6001.
4. Target of
first -ww met while that of second -ww almost met.
5. A new -ww
gives 5920.
6. It
appears like distribution going on unless it goes well past today's high later.
7. -ww
target above met.
8. Second
-ww target met.
9. Target of
9.30 strategy met.
10. Target of
third -ww met.
11. Nifty
opened up with a slight gap and made a new high since 10 Jan '11 but quickly
reacted to make a higher low than yesterday before closing -ve and also below
yesterday's close. In the process targets of all the three -WWs and the 9.30
strategy trade were met. Also met was target of a -ww identified during the day.
The intraday chart of nifty spot values with 5 min candles is shown below.
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