Daily Technical Analysis

Nifty — The index opened on a positive note, but was unable to hold onto the opening session’s gains. It declined throughout the session with high intra-day volatility.

Resistance — The index is facing stiff resistance around the 4263 level (high of 20 August 07). Yesterday’s trading session saw a strong opening and index posted a
high around 4250 in opening trade, it failed to sustain higher levels. This suggests a level of 4263 is a stiff resistance level. Intra-day resistance is around 4166.

Support — The index has support around the 200dma at 4075, breaking below the 200dma could see the index exhibit weakness and decline to lower levels around 3971.The level of 3971 is [62% retracement level from the low of 3555 (5 March 07) to
the recent high of 4648 (24 July 07)].

Conclusion — Intra-day weakness can be expected below 4075, whereas a break above 4166 could see the index test 4250 levels.