Weekly Technical Analysis

Support Around 5676

Nifty — The index closed on a negative note on the opening session of the week after which it saw a sharp decline towards 5676 towards the closing session of the week. It ended the week with a loss of 281 points.

Moving Averages — The 50 dma = 5748, 20 dma = 5850 and 10 dma = 5933. The index is facing price congestion from 20 & 50 dma, close above the 20 dma at 5850 should see the index exhibit strength for the current week’s trading.

Momentum Oscillators — On the daily charts MACD is in sell mode but in positive territory. RSI (14) - Relative Strength Index is exhibiting a reading of 47 (reading above 70 signifies overbought and reading below 30 signifies oversold). Stochastic (5,3) on daily chart is in oversold zone.

Support — The index has support around the 5676-5595 band. Lower support around 5517 (low of 28 November 07). Declines during the week should find support around the 5676-5595 band.

Resistance — The index faces resistance around the 20 dma at 5850, close above the 20 dma could see the index exhibit strength during the week’s trading. Higher resistance can be expected around 5933 (10 dma) and 6012 levels.

Conclusion — Expect strength above 5850 during the current week’s trading.