29 Dec, 2015 (9:06AM IST)
Update: Indian rupee is tumbling against dollar in opening trade. That might spell trouble for Nifty also. If Nifty turns negative, that would mean it has failed to cross its 50-Day Moving average. In that case, the index might trade between 7,930- 7,900 range.
Indian markets, especially Nifty, have been continuing their bounce back since three weeks now and yesterday, Nifty closed very near to its major technical resistance of 50-Day’s Moving Average (7,930).
As SGX Nifty is pointing, Nifty is all set to enjoy a gap up opening today which will take the index clear over that resistance level and open chances of a short term uptrend.
Indian markets have been finding support this week as hopes from the Union Budget give markets another chance to speculate. That’s why these markets have been ignoring all negative cues this week and continue to jump over major levels.
Going by the current indications, if this positive cycle continues, which looks quite possible now, then Nifty could try to recapture 8,000 or even 8,028 levels.
For now, 7,908- 7,900 has become major support for the index and as long as Nifty stays above this level, a positive trend will be more possible.
Only if Nifty falls below this level and stays lower, then it can go down to supports of 7,879 or 7,834.
Otherwise, Nifty will most probably keep inching higher and touch 7,953- 7,982- 8000 levels.
Watch how this index trades and follow that trend.
Good luck, enjoy the session.