Nifty: Nifty yesterday after the positive opening at 4623 failed to cross the lower support of 4600 and on the higher side it tested the level of 4721 where the closing was also seen at days high. Today as the Asian market is trading negative it’s expected that Nifty will open gap down around 4680 where on lower side will take immediate support of 4650 and sustain below 4650 will bring to 4580 to 4500 in near term, whereas on higher side its not expected to trade above 4750 and till the time its holding 4750 selling will continue in market. On lower side if sustain trading is seen below 4500 will open the door for 4300 to 4100 in medium term, whereas on higher side resistance is seen at 4750. Stochastic has just popped out above over sold zone and is flat at the level where some range bounce move is expected till the time resistance is holding and may look some selling pressure if trading is seen below 4650 and will reenter in oversold zone.


USD/INR: Rupee yesterday after the gap down opening at 52.92 failed to trade above 53 and on lower side it tested the level of 52.51 where most of the trading was range bound and closing was seen near 52.67 levels. Today opening was seen positive around 52.92 per$ where it’s still taking resistance of 53 and is trading negative at 52.82 where trading range for the day will be 52.5 and 53 where as on lower side buying is expected if support holds at 52.5 and crossover above 53 will bring to 53.5 – 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 where buying at dips is advice in medium term for positional traders. Stochastic which are trading in the mid zone is showing sign of reversal with positive intersecting which indicates if price move above 53 short term bottom is place and can test 45 and 54.5 level and will move beck to enter in over bought zone.

Nifty & Rupee Overview for 21st Dec 2011

Nifty: Nifty yesterday after the positive opening at 4633 failed to cross the higher resistance of 4650 and tested the lower level of 4536 and after range bound move closing was seen at 4564. Today as the Asian market is trading positive and it’s expected that Nifty will open gap up around 4630 where on lower side will take immediate support of 4610 and sustain below 4610 will bring to 4560 to 4520 in near term, whereas on higher side its not expected to trade above 4680 and till the time its holding 4680 selling will continue in market. Today’s trading range will be 4680 resistance and support of 4520 and trading below 4610 will bring to 4560 – 4520 intraday. On lower side if sustain trading is seen below 4500 will open the door for 4300 to 4100 in medium term, whereas on higher side resistance is seen at 4680. Stochastic has drifted below overbought zone and is trading towards lower zone where further selling in the price is expected in near to medium term.


USD/INR: Rupee yesterday after the gap up opening at 53.17 failed to trade above the same and on lower side it tested the level of 53.07 where most of the trading was range bound and closing was seen near 53.07 levels. Today opening was seen negative around 52.92 per$ where it trades above 53 will test 53.5 to 54 in near term where as on lower side will move and test the level of 52.5 and 51.8 before reversal. . For short term rupee is expected to trade in the lower range of 52 per$ support and on higher side immediate resistance is seen at 53.5 and some consolidation move is expected. In short term trading range bound to upside move is expected where it will move slowly to test 54 again and 54.5 in near term where buying at dips is advice in medium term positional traders. Stochastic has reverted from the higher zone with negative intersection and is trading at 70% zone with negative intersection where selling can be expected in near term.

Daily Nifty & Rupee Outlook for 20th Dec 2011

Nifty: Nifty yesterday after the gap down opening at 4590 tested the lower level of 4559 and after range bound move closing was seen at 4612 after testing the higher level of 4631 where the gap was filtered. Today as the Asian market is trading sideways and it’s expected that Nifty will open sideway where on lower side will take immediate support of 4550 and sustain below 4550 will bring to 4480 to 4350 in near term, whereas on higher side its not expected to trade above 4650 and till the time its holding 4650 selling will continue in market. Today’s trading range will be 4650 resistance and support of 4450 and trading below 4580 will bring to 4500 – 4450 intraday. On lower side if sustain trading is seen below 4450 will open the door for 4300 to 4100 in medium term, whereas on higher side resistance is seen at 4650. Stochastic has drifted below overbought zone and is trading towards lower zone where further selling in the price is expected in near to medium term.

USD/INR: Rupee yesterday after the gap down opening at 52.91 failed to trade below the same and on higher side it tested the level of 53.36 where most of the trading was range bound and closing was seen near 53.07 levels. Today opening was seen positive around 53.17 per$ where it trades above 53.1 will test 53.5 to 54 in near term. For short term rupee is expected to trade in the lower range of 52.8 per$ support and on higher side immediate resistance is seen at 54.5 and some consolidation move is expected. In short term trading range bound to upside move is expected where it will move slowly to test 54 again and 54.5 in near term where buying at dips is advice in medium term positional traders. Stochastic has reverted from the higher zone with negative intersection and is trading at 70% zone with negative intersection where selling can be expected in near term.

Nifty & Rupee Overview for 19th Dec 2011

Nifty: Nifty on Friday after testing the level of 4836 days high failed the cross the higher level of 4850 and on lower side it tested the level of 4623 which was 200 points low form the days high, where the sharp selling was seen at the last two hrs. Today as the Asian market is trading sideways to negative and it’s expected that Nifty will open negative where on lower side will take immediate support of 4500 and sustain below 4500 will bring to 4400 to 4300 in near term, whereas on higher side its not expected to trade above 4650 and till the time its holding 4650 selling will continue in market. Today’s trading range will be 4650 resistance and support of 4450 and trading below 4580 will bring to 4500 – 4450 intraday. On lower side if sustain trading is seen below 4450 will open the door for 4300 to 4100 in medium term, whereas on higher side resistance is seen at 4650. Stochastic has drifted below overbought zone and is trading towards lower zone where further selling in the price is expected in near to medium term.



USD/INR: Rupee on Friday after the gap down opening at 53.2 per$ from the previous closing of 53.82 tested the lower level of 52.28 and closing was seen near the level of 52.8 per$. With the same RBI intervention as expected it test the level of 52.2 once and is expected reversal where again its trading above 53 where trading will move and test 53.5 – 54 again. Today opening was seen positive around 52.8 per$ where it trades above 53.1 will test 53.5 to 54 in near term. For short term rupee is expected to trade in the lower range of 52.5per$ support and on higher side immediate resistance is seen at 54.5 and some consolidation move is expected. Stochastic has reverted from the higher zone with negative intersection and is trading at 70% zone with negative intersection where selling can be expected in near term.

Nifty & Rupee Overview for 16th Dec 2011

Nifty: Nifty yesterday after the gap down opening at 4715 tested the lower support of 4665 and failing to cross the lower level of 4650 reversal in price was seen where on higher side it tested the level of 4780 and closing was seen at 4763 level. Today as the Asian market is trading sideway to positive and it’s expected that Nifty will open positive where on lower side will take immediate support of 4725 and sustain below 4725 will bring to 4680 to 4620 in near term, whereas on higher side its not expected to trade above 4820 and till the time its holding 4820 selling will continue in market. Today’s trading range will be 4820 resistance and support of 4660 and trading below 4770 will bring to 4720 – 4660 intraday. On lower side if sustain trading is seen below 4600 will open the door for 4510 to 4400 in medium term, whereas on higher side resistance is seen at 4800. Stochastic has drifted below overbought zone and is trading towards lower zone where further selling in the price is expected in near to medium term.

USD/INR: Rupee yesterday which open gap up near all time high of 54.4 tested the level of 54.5 as expected the higher was posted and closing was seen at 53.8per$ at day’s low where some RBI intervention was seen in market just below 55 per$ mark. With the same RBI intervention it’s expected to test the level of 52 once and below 51.5 per$ can be tested before fresh trend to commenced where trading range will be 51.5 to 53 for short term. Today opening is expected negative around 53 per$ where it trades below 53 will test 52.5 to 52 in near term. For short term rupee is expected to trade in the lower range of 51per$ support and on higher side immediate resistance is seen at 54.5 and some consolidation move is expected. Stochastic has reverted from the higher zone with negative intersection and is trading at 70% zone with negative intersection where selling can be expected in near term.

Nifty & Rupee Overview for 15th Dec 2011

Nifty: Nifty yesterday after the gap down opening at 4793 tested the previous days high at 484 and reverted form the higher level and the low was posted at 4748 and closing was also seen near the days low. Today as the Asian market is trading negative and it’s expected that Nifty will open negative where on lower side will take immediate support of 4700 and sustain below 4700 will bring to 4550 to 4500 in near term, whereas on higher side its not expected to trade above 4800 and till the time its holding 4800 selling will continue in market. Today’s trading range will be 4750 resistance and support of 4620 and trading below 4700 will bring to 4660 – 4620 intraday. On lower side if sustain trading is seen below 4600 will open the door for 4510 to 4400 in medium term, whereas on higher side resistance is seen at 4800. Stochastic has drifted below overbought zone and is trading towards lower zone where further selling in the price is expected in near to medium term.

USD/INR: Rupee yesterday which open gap up at 53.7 per$ traded positive and tested the high of 54.09per$ but after slight correction at higher level closing was seen at 53.91per$, still above the support level of 53.5per$. Today opening is expected positive around 54.1 per$ where it failed to cross the lower level of 53.8 per$ and is expected to trading at 54.2 per$ to 54.6 per$ intraday and is nearing the resistance of 54.3per$. If sustain trading is seen above 54per$ will bring to higher level of 54.5per$ to 55 per$ which will be just the extension target of the rise what we have been seen in past days. Where on lower side it’s not expected to trade below 53.5 per$ on closing basis and any dip will be buying opportunity where on higher side if sustain trading above 54per$ will spark the higher target of 55 per$ to 56 per$ in near term. Stochastic has reverted from the lower zone with positive intersection and is trading at 60% zone with positive intersection where buying can be seen in near term.

Forex - Dollar firms on Federal Reserve hints of no policy changes

The dollar firmed in Asian trading Wednesday after the Federal Reserve dismissed the possibility of fresh monetary easing, which would have weakened the dollar with the aim of injecting liquidity into the financial system to pump up the economy.

Meanwhile, reports out of Germany that Chancellor Angela Merkel's government opposes strengthening a bailout fund fueled the flight to the safe and liquid greenback as well.

In 2012, a EUR500 billion European Stability Mechanism will become operational yet fears have persisted that while it may be big enough to assist countries like Greece, it won't be large enough to prop up Greece alongside bigger eurozone nations such as Italy and Spain.

Talk that Germany, one of the fund's key contributors, opposes beefing it up fueled fresh fears that the euro may be in trouble.

Furthermore, the Federal Reserve didn't rule out the possibility of snapping up assets such as Treasury bills or mortgage-backed securities from banks, known as quantitative easing, in its quarterly monetary policy statement on Tuesday.

Markets, however, interpreted the language to mean that such a move wouldn't come until well into 2012 if it does comes at all.