Nifty & Rupee Overview for 6th Jan 2011

Nifty: Nifty yesterday after the positive opening at the level of 4761 tested the higher level of 4790 but failed to hold the higher level and in the later part of trading session it traded negative where the low was tested at 4738 and closing was seen negative at 4750 level similar to the previous trading session move. Today as the Asian market trading negative we expect flat opening in Nifty too, where on higher side 4800 is the immediate resistance level which is 40 DMA and if fails to trade above the same selling may continue from the higher level where as on lower side 4720 is the support and today’s trading range will be 4820 to 4660 level and selling is advise at higher level. On lower side if sustain trading is seen below 4750 will open the door for 4680 to 4620 immediately, where as further 4200 can be expected in near term, whereas on higher side resistance is seen at 4850 on closing basis. It’s not expected to cross the higher resistance of 4850 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 are trading in the mid zone and if the resistance is holding selling may be seen at higher level.


USD/INR: Rupee last trading session closing was seen at 53.20 and on higher side 53.25 was the resistance taken and was trading negative as some buying pressure is seen at the level of 52 around. Today opening was seen flat around 53.2 per$ where some negative move is expected where on lower side support is seen at 53 per$ and on higher side immediate resistance is seen at 53.55 per$ where till the time support of 53 holds buying at dips is advise around 53.05 per$ and will test 53.25 and above 53.5 per$ will further move to 54 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 move side way to upside and higher target can be tested soon.