Nifty Outlook 26th December

The Nifty began the week on a negative note and tested an intraweek low of 4,531. The index, though, staged a smart recovery and rallied almost 230 points. We stated in the previous weekly report, Intraweek 4,580 and 4,530 is the support zone. The Nifty touched a high of 4,763 on Friday before closing at 4,714, down 20 points. For the week, though, the index gain over 1%. On the daily charts, the Nifty faced resistance near the 38.2% retracement level,  On the charts, the upside seems limited as downward sloping trend line and medium-term moving averages are placed around 4,950. Intraweek, the index is likely to witness resistance around 4,790 and 4,810, (50 per cent retracement of the recent fall). Any close or sustainable move beyond 4,810 may lead Nifty to test 4,880 (61.8% retracement level). Bias in the near-term is positive up to the above said levels. On the other side, Intraweek Nifty could seek support around 4,660 and 4,570.