Nifty & USD/INR Report 8th December, 2011

VIEW ON NIFTY

Nifty:
Nifty yesterday which gave a gap down opening at 5058 and taking the support of 5050 tested the higher level above 5100 and tested the level of 5132 where on closing basis sharp correction was seen where closing was seen at 5063 level. The most awaited news and meeting for the euro zone will be deciding factor for the further trend in market, if fails to support the euro sharp correction can be expected. Today as the Asian market is trading downward and it’s expected that Nifty will open side way and will be trading in the range of 5120 as resistance and support of 5000 and is trading below 5050 will bring 5010 on lower side. Whereas on higher side resistance is seen at 5120 level and closing above the same will only bring further uptrend in market. On lower side if sustain trading is seen below 5010 will open the door for 4850 to 4600 in medium term, whereas on higher side resistance is seen at 5150. Stochastic has entered in overbought zone and is till moving up where if the resistance is crossed will give some more pull back in price where as if price sustain below the level of 5090 will give some profit booking.

VIEW ON RUPEE

USD/INR: Rupee yesterday which gave a gap down opening at 51.53 per$ faled to trade further lower and reversal in price was seen in market where on higher side it gave a closing at 51.92 per$ which was just near the resistance level of 52 per$. Today opening is seen gap up at 51.95per$ where it failed to cross the lower level of 51.85per$ and is trading at 52.025per$ nearing the support of 52per$. If sustain trading is seen above 52.1 will bring to higher level of 52.4per$ to 52.6per$ which will be just the retracement of the rise what we have been seen in past days. Where on lower side it’s not expected to trade below 51.8 per$ on closing basis and any dip will be buying opportunity where on higher side if sustain trading above 52.4 will spark the higher target of 52.8 per$ to 53 per$ in near term. Stochastic has reverted from the lower zone with positive intersection and is trading at 35% zone with positive intersection where buying can be seen in near term if trade above 20% zone where some buying can be expected.

Report By
xDirect India