Citigroup - Weekly Technicals

Citigroup in their weekly technical research report,

Nifty — The index ended in negative territory on the opening session of the week, it rallied towards 4278 towards the remaining part of the week. The index ended the week up 81 points.

Confined in a Range — The index has been confined in a trading range of 4072 on the downside and 4363 on the upside for the last six weeks.

Momentum Oscillators — The Stochastic (5,3) on the daily chart is in overbought zone and is in sell mode in the weekly chart. The RSI (14) – Relative Strength Index on the daily chart is exhibiting a reading of 58(reading of 70 signifies overbought). MACD on daily chart is in buy mode and around the “0” line. Momentum study suggests index can see intra-week volatility.

Moving Averages — The daily moving averages are around -10dma = 4199; 20dma = 4218; 50dma = 4164. Intra week dips should find support around the averages. [dma = daily simple moving average].
Resistance — The index faces resistance around 4300 and 4325. Intra week rise should face stiff resistance around these levels.

Support — The index has support around 4199, break below 4199 could see index decline towards 50dma at 4154 levels.

Conclusion — Range bound movement can be expected with support around 4200 levels.