NIFTY Weekly technicals

Last week we saw NIFTY was in a bullish mode. A good uptrend was seen.
Last week NIFTY closed at 3108 and this week at 3211.05 an increase of 100 points odd. A good one.
The week was followed with good global cues.
NIFTY TRIN at 0.482
Over all Nifty is Bullish.

Support - 2970 and 2820
Resistance - 3325 and 3420
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

Nifty flirted with the 3200-mark on Friday and closed slightly above it. This does not qualify as a break-out. Since this level has been the ceiling for the index over the last five months, we would like to see a close at least 2 per cent above 3240 before we can start celebrating.

Immediate targets for the wave from 2539 trough are 3189 and 3287. To put it in simpler terms, one leg of the up-move from the 2539 trough could be drawing to a close. But a strong move above 3287 will imply a wave extension that makes the index can race towards 3326 or 3450. The 200-day moving average also present at 3450 will be the level that most participants will aim for on a strong move above 3287.

Supports for the week are at 2970 and 2820. Short-term traders can hold their longs as long as Nifty trades above the first support.