Weekly Technical Analysis

Nifty — The index traded positive during the opening sessions of the week after which it rallied toward 6300 toward the closing session of the week. It ended the week with gains of 194 points.

Moving Averages — The 50 dma = 5870, 20 dma = 6021 and 10 dma = 6089. The index is trading above its averages; declines during the week should find support around the averages.

Momentum Oscillators — On the daily chart, MACD is in buy mode. RSI (14) - Relative Strength Index is exhibiting a reading of 68.82 (reading above 70 signifiesoverbought and below 30 signifies oversold). Stochastic (5,3) is in sell mode and in overbought zone. Momentum Oscillators suggest the index can see intra-week choppy movement.

Support — The index has support around 6185-6089 band. The level of 6185 (high of 13 December 2007) and 6089 is the 10 dma. Lower support during the week is around 6021. Intra-week declines should find support around 6185-6089
band.

Resistance — The index faces resistance around 6300 levels.

Conclusion — Intra-week declines should find support around 6185-6089 band