Weekly Technical Analysis

Nifty — The index closed on a negative note on the opening session of the week, after which it rallied toward 5717 for the remaining part of the week. It ended the week with gains of 487 points.

Moving Averages — The 50 dma = 4846, 20 dma = 5233, 10 dma = 5489. The index has closed above the 10 dma. Support during the week’s trading can be expected around the 10 & 20 dma.

Momentum Oscillators — On the daily chart , MACD is in sell mode but in positive territory. RSI (14) – Relative Strength Index is around 68.25 (reading above 70 signifies overbought). Stochastic (5,3) is in buy mode.

Resistance — The index faces resistance around the recent high around 5737 (high of 18 October 07). Close above the 5737 level will see the index exhibit further strength.

Support — The index has support around the 10 dma around 5489 .Intra-week declines should find support around the 10 dma level. Close below the 10 dma around 5489 can see the index decline toward 5300 levels.

Conclusion — Stay focused on the upside for the current week’s trading with support around 5489.