Citigroup - India Technicals

Citigroup in their daily technical report,

Nifty — The index opened on a positive note and posted an intra-day high of 4,363 in opening trades, after which it drifted down for the rest of the day’s trading session. The index closed with a loss of 40 points.

Perfect Downward Bar Reversal — The index has posted a perfect downward bar reversal on the daily bar chart (i.e. the index traded above the previous day’s high and closed below the previous day’s low and close), which suggests the index can decline from current levels.

Resistance — The index is facing stiff resistance around 4,307 levels; it is unable to hold above 4,307 on a closing basis.

Support — The index has support around 4,235 (lower end of the channel) and 4,202 (20dma). Expect test of support during the day’s trading.

Conclusion — Expect an intra-day decline towards 4,235.