Nifty future closed lower by 3.91% to 4882.25.During the week, Nifty has failed to cross its important resistance of 5150. It has closed below its short term EMA of 3 weeks, which depicts fresh weakness at the current level. On the down side, level of 4824 will act as a support for the short term traders. Downward trend will continue below 4824 for the next target of 4756 and 4700.On higher side, level of 4950 and 5022 will act as a strong resistance for the next week. On the option front High put option open interest build up of around 5.9 Mn and 8.2 Mn is seen at 4800 and 4700 strikes which indicating that they will act as strong supports. High call option open interest build up of around 5.9 mn and 7.8 mn is seen at 5000 and 5100 strikes which indicate that they will act as strong resistances. The PCR for Nifty based on open interest is down at 1.08 as compared to 1.31 which indicates some negative for the market.
• The market is likely to remain volatile as investors react to a slew of economic data and the Reserve Bank of India's monetary policy review.
• Investors will keenly watch data on third quarter December 2011 corporate advance tax payment due on
• Thursday, 15 December 2011, which may provide cues on Q3 December 2011 results of the individual companies.
• Interest rate sensitive banking, auto and realty shares will be focus next week ahead of the RBI's monetary policy review on Friday. With the liquidity situation becoming tighter and inflation on the decline, the financial markets are expecting a reduction in the cash reserve ratio (CRR) -- portion of bank deposits kept with the RBI -- to ease the money crunch in the banking system. The CRR has been left unchanged at 6% since May 2010.
• Important data to be announced in India next week are IIP data for October 2011 on Monday 12th Dec and headline inflation for November 2011 on Wednesday.
• Important data to be announced next week in the US are FOMC Meeting Announcement, Jobless Claims and Industrial Production.
Nifty Level
R1-4970
R2-5170
S1-4830
S2-4750
