NIFTY OUTLOOK 12TH JAN 2012

The Nifty tested an intraday high of 4,877 and traded in a narrow range during the day. As stated in the previous report, the Nifty tested the 61.8% retracement level. On daily charts, the Nifty faced resistance at its 50-day SMA. It ended in a doji candlestick formation near the 61.8% retracement level, indicating resistance there. On hourly charts, RSI is in the overbought territory. Hence, intraday correction from current levels cannot be ruled out. On the upside, it may face resistance at 4,880 and 4,920. On the downside if Nifty fails to sustain above Wednesday’s low (4,840), it may test 4,800 and 4,780.