Citigroup - India Technicals

Citigroup in their report on India Technicals,

Nifty — The index exhibited high intra-day volatility. It opened on a flat note, traded sideways in the morning session, dipped down towards 4100 in the afternoon session, and saw a rally towards the close. The index ended the day up 9 points.

10&20dma crossover — The moving average crossover in the daily chart is negative
(i.e. the 10dma has crossed the 20dma from above); 10dma=4222 and 20dma=4231. Intra-day pullback will likely face stiff resistance around the averages. [dma = daily simple moving average]

Support — The index has support around 4126 (intra-day it whipsawed 4126 but closed above it) and 4072 (low of 14 May 07). Intra-day volatility can be expected if Nifty breaks the 4126 level.

Conclusion — Intra-day pullback will face resistance around 4200 levels.