Weekly Technical Analysis

Nifty — The index closed positive on the opening session of the week; mid-week it dipped down toward 4344, after which it rallied toward 4514.The index ended the week with gains of 120 points.

Channel — The index has closed above the upper end of the channel from the low of 4136 (low of 19 June 2007). Close above the upper end of the channel suggests the index should test higher levels above 4514 during the current week's trading. Plotting a parallel line to the upper end of the channel gives a projected value around 4600 levels during the current week's trading.

Moving Averages — The index is trading above the 10 dma = 4393 and 20 dma = 4324.The index trading above the moving averages should be considered positive. Intra-week decline should find support around the 10 dma around 4393. [dma = daily simple moving average]

Momentum Oscillators — On the daily charts MACD is in buy mode. Fast Stochastic (5 ,3) is in buy mode but in the overbought zone. RSI (14) - Relative Strength Index is exhibiting a reading of 75 (reading above 70 signifies overbought zone).

Support — The index has support around 4434 (high of 10 July 07). Intra-week dips should find support around these levels. Lower support is around 4363 (high of 4 June 2007).

Conclusion — Expect the index to move toward 4600 levels; support is around 4434.