Daily NIFTY & USD/INR Report 29th December, 2011

VIEW ON NIFTY

Nifty: Nifty yesterday after the gap down opening at 4736 failed to trade above 4750 and on lower side it tested the lower level of 4681 and closing was just seen at 4700 where the 10 DMA was there, with the international market news on Euro zone crises where banks are holding the funds gave sharp correction in market. Today as the Asian market is trading downward and nifty is expected to open around 4670 and will take support 10 DMA at 4660 and if trading is seen below 4660 will bring to lower level of 4610 and 4550 in near term. On lower side if sustain trading is seen below 4550 will open the door for 4400 to 4200 in near term, whereas on higher side resistance is seen at 4775 on closing basis. It’s not expected to cross the higher resistance of 4800 and till the time its holding the same selling at rise is advisable, where in medium term 4350 is the target which is 100% expansion of a- b from point c and can also test 3900 which comes to 161.8% in medium term. Stochastic has just nearing the overbought zone and if the resistance is taken at 4800 will turn -ve and will move back to lower zone.

VIEW ON RUPEE

USD/INR: Rupee yesterday closing was seen positive at the level of 53.6 where it tested the higher level of 53.8 and short profit booking at high was seen. Today opening was seen positive around 53.77 per$ where some positive move is expected where on lower side support is seen at 53.5 per$ and on higher side immediate resistance is seen at 54 per$ where till the time support of 53.5 holds buying at dips is advise around 53.65 per$ and will test 54 and above 54.2 and further will move to 54.4 in near term. In short term trading range bound to upside move is expected where it will move slowly to test 54 again and 54.5 in medium terms and long term target of 58 cannot be denied where buying at dips is advice in medium term for positional traders. Stochastic which has given positive intersection near lower zone which indicates price will rise side way to upside and higher target can be tested soon.

Report By
xDirect India