Nifty Outlook 27 December

After opening flat, the Nifty rallied in the initial hour of the trade. Finally, the Nifty ended higher by 65 points, or 1.38%, at 4, 779.


 On daily charts, for the fourth consecutive day, it held above the previous session’s low and posted higher high, suggesting pull back to continue in the near-term. 


The Nifty may consolidate with positive bias in the near term ahead of New Year and derivative expiry. According to the Fibonacci retracement theory, the Nifty could face resistance at the 4,810 (50 per cent of its recent fall).  On hourly chart, the Nifty is approaching the overbought territory, hence intraday correction cannot be ruled out. Any sustainable move beyond 4,810 may lead Nifty to test 4,880 (61.8% retracement level) and the downward sloping trend line. On daily charts, MACD line has crossed the signal line from below, indicating that further gains are likely. On the flip side, 4,715 and 4,690 could act as the support in the near-term.