Weekly Technical Analysis

Nifty — The index closed on a positive note on the opening session of the week, after which it rallied toward 5261. It exhibited range-bound movement toward the closing session of the week. It ended the week with gains of 165 points.

Momentum Oscillators — On the daily chart, MACD is in buy mode. RSI (14) – Relative Strength Index is exhibiting a reading of 83.71 (reading above 70 signifies overbought). Stochastic (5, 3) is in sell mode and in overbought zone. Momentum oscillators are exhibiting overbought reading on daily charts.

Moving Averages — The 50 dma = 4531, 20 dma = 4796, 10 dma = 5035. The index is trading above the averages. Rising moving averages act as a support during declines. Support during the week's trading can be expected around 10 dma around 5035.

Support — The index has support around 5126 (low of 4 October 07) and 10 dma around 5035. Intra-week declines should find support around these levels. Lower
support is around 5000 levels.

Resistance — The index faces resistance around the recent high at 5261 (3 October 07), close above the 5261 levels can see the index exhibit strength during the week's trading.

Conclusion — Upswing can continue with support around 5035; close below 5035
can see intra-week declines.