Daily_Nifty_VP's View-20/12/12

LEADER POST for Thursday (20/12/12)

1.         Supports are at about 5921, 5907, 5858 and 5809 while resistances are at about 5934 and 5950. Other level to watch is 5965. Two likely +WWs give about 5952 and 5980 (+WWs with higher targets are not mentioned as of now). Three likely -WWs give about 5900, 5870 and 5852 (other -WWs with lower targets are not mentioned presently). Two bullish flags can give about 5966 and more unless killed below 5868.

Nifty finally closed above 5925 and gave a bullish sentiment. However, all is not well yet. The daily candle is an evening star, which can be bearish. Thursday's candle must be green with preferably a gap up opening to defeat it. Also, nifty has to close above 5965 to become bullish again. If nifty opens down with a big gap, it can be tricky. If it closes below 5827, it may become bearish. Nifty may be very choppy as expiry approaches. Hence trade with strict SLs.

2.         PCR at up 1.08 and VIX up at 14.47. Better to trade safely. Pre-open high/low at 5983/5920.40 and close at 5934.45. This is the highest pre-open in a month. But the 10tf candle may indicate a flat to -ve nifty after a slight gap up open.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5959NF, TARGET 5985, SL 5929.

4.         If SL is hit, sell above 5932NF, target 5895/86, SL 5953.

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

6.         9.30 strategy reverse trade target met without giving chance of an entry.

7.         Nifty spot opened up with a small gap while nifty opened down. It couldn't make a higher high and quickly reacted. It then made a lower low than yesterday before closing -ve and also below yesterday's close. It thus filled the gap created yesterday. The target of first -ww of the first post was met but the SL of 9.30 strategy trade was hit. The target of reverse trade was met but without giving a chance of an entry.

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