Citigroup - Weekly Technicals

Citigroup in their weekly technicals report,

Nifty — The index declined on the opening session of the week and traded sideways for a day (Tuesday’s session) after which it declined toward the later part of the week. The index ended the week down 152 points.

Moving Averages — The daily moving averages are at 10 dma = 4247 and 20 dma = 4228, and the 10-week moving average is at 4094. Intra-week bounce toward the 10 & 20 dma in the 4228-4247 range can be expected. Support can be expected around the 10 wma at 4094. [dma = daily simple moving average and wma= simple weekly moving average]

Momentum Oscillators — The RSI (14)-Relative Strength Index on the daily chart is exhibiting a reading of 45.79 (reading of 30 signifies oversold). MACD (Daily) is in sell mode and is exhibiting Negative Divergence. Stochastic Daily (5,3) is in oversold territory. Momentum Study suggests Nifty can see intra-week volatility.

Fibonacci Retracement — The 62% retracement level of the rise from low of 3981 (11 May 07) to the recent high at 4363 is at 4127 (approximate). The index tested the 4127 level in the previous week's trading and witnessed intra-day bounce. Support can be seen around 4127.

Support — The support levels for the current week's trading are at 4127 and 4094 (10wma).

Resistance — Resistance should be expected around the 10 & 20 dma in the 4228-4247, intra-week pullback should face stiff resistance around the averages.

Conclusion — Pullback toward 4228-4247 can be expected in the current week; intra-week decline should find support around 4127-4094.