Citigroup - Weekly Technicals

Citigroup in their weekly technical report,

Nifty — The index traded flat on the opening session of the week; it dipped down toward 4100 levels and saw a rise toward the latter part of the week's trading. It
ended the week up 26 points.

Daily Simple Moving Averages — The index is trading around the averages, witnessing support and resistance around the averages. The 10 dma = 4183; 20 dma = 4223; 50 dma = 4112. The 10 & 20 dma crossover is negative, suggesting pullback will face resistance at higher levels. [dma = daily simple moving averages; negative crossover – 10 dma has crossed the 20 dma from above.]

Momentum Oscillators — The RSI (14) - Relative Strength Index on the daily chart is exhibiting a reading of 49.79 (reading of 30 signifies oversold). MACD on the daily chart is in sell mode. Stochastic Daily (5,3) is in buy mode. Momentum study suggests Nifty can see intra-week volatility.

Fibonacci Retracement — The retracement levels of the decline from high of 4363 (4 June 07) to the low of 4100 (12 June 07) are: 50% = 4232 (approx.) and 62% = 4263 (approx.). Index can see test of retracement levels during the current week.

Support — The index has support around 4112 (50 dma) – 4100 & 4052. Intraweek dips should find support around 4100 levels.

Resistance — The index has resistance in the 4223 (20 dma)-4232 band.

Conclusion — We expect range-bound movement with rise toward 4232; intra-week
volatility can be expected.