Daily_Nifty_VP's View-14/12/12

LEADER POST for Friday (14/12/12)

1.         Supports are at about 5848, 5839 and 5797 while other level to watch is 5838. Resistances are at about 5853, 5880/84/87 and 5900. Other levels to watch are 5925 and 5965. Three likely +WWs give about 5867, 5900 (once above 5872) and 5960 (once above 5862) (+WWs with higher targets are not mentioned as of now). Two imperfect -WWs give about 5830 and 5806 (other -WWs with lower targets are not mentioned presently). Two bearish flags can give 5819 and 5800 unless killed above 5876.

Nifty went down and barely managed to close above 5850 and hence lower levels are likely. Nifty must cross above 5925 first and then 5965 to become bullish again. If nifty closes below 5827, it may be worrisome. Nifty may be very choppy for a few more days. Hence trade with strict SLs.

2.         PCR flat at 1.04 and VIX slightly up at 14.71. Pre-open high/low 5851.50/5810.65 and close at 5846.90. This may indicate a +ve nifty after a slight gap down open.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5868NS, TARGET 5841/26, SL 5898.

4.         If SL is hit, buy below 5901NF, target 5929/37, SL 5871.

5.         Target of first +ww met.

6.         SL of 9.30 strategy was triggered and reverse trade activated. SL of 9.30 strategy was triggered and reverse trade activated.

7.         Nifty opened up with a slight gap, made a lower high and low than those yesterday before rising again to close +ve and also above yesterday's close. In the process, target of first +ww of the first post. However, SL of 9.30 strategy trade was hit but target of reverse trade was not met.

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