NIFTY Weekly Technicals.

>> Sunday, May 3, 2009

Last week we saw NIFTY was in a range bounded mode. Volatility was seen. Followed by many holidays n markets.
Last week NIFTY closed at 3480 and this week at 3473 a flat one.
FII's participation was good. This participation can be reduced due to Swine Flu fear.
NIFTY TRIN at 0.42
Over all Nifty is Range Bounded.
NIFTY Nature - Wait.

Support - 3390 and 3341
Resistance - 3510 and 3585
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

Nifty closed marginally in the red after a volatile start to the week. The index could move higher to 3487 or 3517 next week. If there is a close above the second target, it would usher in a rally to 3572. Supports for the week would be at 3300 and 3170. Short-term traders can continue to buy in declines as long as the index trades above the first support.

Medium term view for Nifty stays positive and a close below 3170 is required to signal a medium-term trend reversal.