India Weekly Technicals

Nifty — The index closed on a strong note on the opening session of the week after which it saw a steady rise for the remaining part of the week. It ended the week with a gain of 313 points.

Moving Averages — The 50 dma = 5786, 20 dma = 5928, 10 dma = 5935. The index is trading above the averages; declines during the week should find support around the averages.

Momentum Oscillators — On the daily chart, MACD is in buy mode but showing signs of negative divergence. RSI(14)- Relative Strength Index is exhibiting a reading of 60.92 (reading above 70 signifies overbought and below 30 signifies oversold). Stochastic (5,3) is in buy mode but in overbought zone. Momentum oscillators suggest index can see choppy movement for the current week’s trading.

Support — The index has support around the 10 dma & 20 dma around 5928- 5935 band. Intra-week declines should find support around the 10 & 20 dma levels. Lower support is around 5830.

Resistance — The index faces resistance around 6111-6185 levels. Index is likely to test resistance around 6185. Close above 6185 levels would likely see index exhibit further strength.

Conclusion — Index has support around 5928. On the upside, we believe it can test 6185 levels.