Citigroup - Daily Technicals

Citigroup in their daily technical report,

Nifty — The index opened on a flat note and traded sideways in negative territory till the afternoon session, post which it saw a sharp decline towards 4190. It ended the day down 87points.

Breaks below the Trading Range — The index violated the lower end of the 4307-4241 trading band and closed below it on a weak note, suggesting it should decline from current levels.

Support — The index has support around 4141 (low of 25 May 2007) and 4127 (approx.). The level of 4127 is a 62% retracement of the rise from a low of 3981(11 May 07) to the recent high at 4363. Nifty is likely to decline towards the 4141-4127 levels.

Resistance — The index will face resistance around 4241 (Role Reversal- Earlier 4241 was a support, now will act as a resistance) and 10dma at 4261.Intra day bounce will face stiff resistance around 4241-4261 levels.

Conclusion — Expect declines towards 4141-4127 levels.