(Ni,Cu) co-doped ZnO nanocrystals have been prepared through wet chemical route using nitrate based precursors and have been characterized thoroughly. Phase purity of the samples has been investigated by X-ray diffraction (XRD) and Transmission Electron Microscopy (TEM) measurements. To have further micro structural insight, the samples have subsequently been subjected to synchrotron radiation based Xray absorption spectroscopy (XAS) measurements comprising of both X-ray near edge structure (XANES) and Extended X-ray Absorption Fine Structure (EXAFS) techniques. The results of the above measurements have been used to explain the magnetic properties of the samples which have further been corroborated by density functional theory (DFT) based electronic structure calculations.