Weekly Market Outlook for 26th December to 29th December

In the week gone by, our markets witnessed some profit booking during mid-week where the broader markets corrected sharply along with the benchmark index, but we witnessed a pullback move from the lows to end the week above 21300. 

Nifty Today:

During last week, Nifty tested 21500-21600 mark from where we witnessed some profit booking as the RSI readings were quite overbought post the recent run up. The momentum oscillator is hinting at a probable short term corrective phase, but since the important supports are intact so far, it may be a time-wise corrective phase. The 20 DEMA at 20850-20900 zone will be seen as the important support, which if broken then only one should expect a price wise retracement phase. Till this support is intact, 20850-21500 will be the broad trading range for the Nifty. FIIs have consistently formed long positions in the derivatives segment in this series which is a positive sign. It would be crucial to see the quantum of long rollover by them to the January series in the coming week. Certain sectors such IT and selective pharma stocks can buck the trend and provide good trading opportunities for the short term. Hence, traders are advised to trade with a stock specific approach and trade with proper risk management.

Index expected to consolidate in a broad range; IT stocks bucking the trend 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: