As expected the market witnessed a smart rally on last Friday. Since the morning till now the market is trading in a very small range. The Nifty (Spot) is holding the 5870-- 5900 range today till now, which only points that the US lawmakers are probably close to any meaningful solution to the Fiscal Cliff. On the Chartical Front, the market remains strong as long as it traded above 5800 level. Profit booking at higher level and correction remains the basic characteristic of an uptrend, and this can be witnessed from time to time. As mentioned earlier, the up trend remains intact till Nifty_Spot trades above 5800.
Today, many of the Asian markets are shut for New Year's holiday and hence nothing much inference can be taken. The European Markets have opened more or less in the flat territory.
On the other hand the US stocks fell over 1% on last Friday, as lawmakers failed to arrive at a consensus to avert FISCAL CLIFF. The Republicans and Democrats need to reach a deal before January to avert some tax hikes and spending cuts. However, the both the ruling and the opposition party will find some solution, which will be beneficial for the US. Hence, we need to use too much of our brains on the same. I find this is simply a no-brainer, where the media is making us, think too much.
Domestic share indices are seen to trade flat today, as investors remain jittery ahead of the Dec 31 deadline for US lawmakers to reach a budget deal. However the prudent investors should use this opportunity to buy Nifty_Futures now at 5900 (Spot) for a target of 5940 (spot), with a SL 58 65.