NIFTY OUTLOOK 11 JAN 2012

After having opened positive, the Nifty continued to inch higher and extended the gains during the day. Firm cues from European market led the pull back rally. It ended the day 107 points, or 2.25 %, higher at 4,849.55. The markets strengthened further post Moody's upgraded India's rating to investment grade.  In our earlier report, we stated any sustainable move above 4,780 and 4,810 would extend the pullback up to 4,880 and 4,920 levels.  Intraday, the Nifty tested a high of 4,855.90.  On the daily charts, it ended in long bullish candle, suggesting optimism among traders. However, on hourly charts, RSI is approaching the overbought territory. Hence, intraday correction from current levels cannot be ruled out. During the next trading session, 4,810 and 4,780 could act as support levels for the day. On the flips side, 4,880 and 4,920 are the immediate resistance levels.