Daily Technical Analysis

Nifty — The index opened on a positive note but was unable to hold on to its opening gains. It declined through the day’s session, ending down 124 points.

200 Day Moving Average — The index has closed around the 200dma (4,071); high intra-day volatility can be expected around this level. A break through 4,071 could take the index toward 3,971 [a 62% retracement level from the low of 3,555 (5 March 07) to the recent high of 4,648 (24 July 07)].

Resistance — Intra-day resistance is 4,140-4,189. Intra-day bounce should face stiff resistance around the 4,140 levels.

Conclusion — Expect intra-day weakness below 4,071.