Citigroup - Weekly Technicals

Citigroup in their weekly technical report,

Nifty — The index traded flat on the opening session of the week; mid-week it consolidated around the “All-Time High at 4363.” On the last trading session it
closed on a strong note above 4363.The index ended the week with gains of 67 points.

Perfect Upwards Bar Reversal — The last trading session of the week saw the index posting a “Perfect Upwards Bar Reversal” on the daily bar chart (i.e., index traded below the previous day's low and closed above the previous day's high and close). This indicates it should move up from the current level.

Moving Averages — The index is trading above the 10 dma = 4318 and 20 dma = 4253; the 10 & 20 dma crossover is positive .The 10 wma is at 4223. The index trading above the averages should be considered positive. [dma = daily simple moving average; wma = weekly simple moving average]

Channel — The index is moving in an upward sloping channel from the low of 4136 (low of 19 June 07). Support and resistance during the current week’s trading can be expected within the channel. Weekly projection on the upside of the channel is around the 4450 level.

Support — The index has multiple support around the 4300 levels. The lower end of the channel is at 4320; the low of Friday’s (6 July 07) Perfect Upwards Bar Reversal is at 4304; the 10 dma is at 4318. Intra-week dips should find support around the 4300 level.

Conclusion — Expect the index to move toward 4450 levels during the week’s trading; support can be expected around 4300 levels.