Citigroup - Weekly Technicals

Citigroup in their weekly technical report,

Nifty — The index closed on a positive note in the opening session of the week; it consolidated in the 4,296-4,250 band mid-week. It closed on a strong note in the last session of the week. The index ended the week up 66 points.

Breakout from double inside day bar — In the last trading session of the week, the index moved past the 4,296 high of the double inside day bar formation. This suggests the index can push upwards.

Momentum Oscillators — The RSI (14) on the daily chart is 63.43 (reading of 70 signifies overbought). The MACD on the daily chart is in buy mode.

Moving Averages — The 10dma = 4,253; 20dma = 4,218. The 10&20dma crossover is positive (i.e. the 10dma has cut the 20dma from below). 10 wma = 4,192. Intra-week decline should find support around the moving averages.

Support — The support level for the weeks’ trade is around 4,250-4,253. 4,250 is the lower end of the mid-week consolidation band.

Resistance — The resistance level is around the all-time high at 4,363.

Conclusion — Stay focused on the upside till we maintain above 4,250 on a closing basis.