>> Sunday, March 15, 2009
Last week we saw NIFTY was in a rangebounded mode.
Last week NIFTY closed at 2620.15 and this week at 2719 an increase of 100 points.
The week was volatile.
NIFTY TRIN at 0.538
Over all Nifty is rangebounded.
Pivot - 2720
Support - 2645 and 2590
Resistance - 2800 and 2845
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)
Over all mode "Volatile"
Nifty held above the support at 2502 last week and rebounded strongly on Friday to end the week up 3.7 per cent. Nifty needs to make a little more headway before the short-term outlook turns positive. Key near-term resistance for the index is at 2800. Presence of the 50-day moving average at this level adds to its significance.
Failure to move above 2800 will imply that the near-term outlook for Nifty stays negative and the index can reverse down to decline to 2500 or 2252. However, a close above 2800 will make the near-term view positive for Nifty. Such a move will indicate that the index can move higher to 3000 or 3250 over the medium-term.