Nifty Futures Expert Advice

Nifty Futures Expert Advice for week commencing 26 Dec 2011

Nifty on the weekly chart has formed a small bullish candle with a long lower shadow and a small upper wick suggesting some supportive activity at the lower levels. Nifty sustaining above the 4700-4630 mark in the coming sessions can see the current pullback effort getting extended towards the 50% and 61.8% Fibonacci retracements of the recent decline from 5099 to 4531 which are placed at 4820 and 4880 levels respectively.

It would be important to monitor the time consumed to retrace the recent decline in order to find out the magnitude of upsides in the near term.

In the absence of a faster retracement the current pullback could terminate near the 4880-4920, region being the confluence of multiple resistances (Gap down area of 9th December and also the 61.8% retracement of the recent decline).

In the month of December (December 21) FIIs have been net sellers to the tune of 1450 crores while DIIs have bought shares worth 498 crores.   

Key data to watch globally would be Personal spending, Initial Jobless claims and new home sales

In India, for the next week the key data to watch would be weekly inflation and current account balance (Q3)

You can check out Nifty Future Prediction and can make decision accordingly for investment or day trading in the stock market or you can check daily Nifty Futures to have a daily unbiased opinion on the subject.