Markets jittery, but hopeful

THE MARKETS’ VOLATILE behaviour last week had the traders rattled as Nifty yo-yoed between 25,473 and 25,900 as it closed with a miniscule gain of just 11 points, or 0.04%, for the week at 25,694.

- MVK SHARMA

You would recall that for the week ended January 9, once the Nifty had breached trendline number 85 (see chart) on January 8, it could never reach the trendline despite several attempts.

Since this is an upward sloping trendline, the asking rate to resume the uptrend will keep on rising each day. Currently, it is placed at 26,090 for Monday.

But the first resistance is at 25,875 from the 50-day double exponential moving average (Dema). The first support for the Nifty is at 25,473, the low formed on January 12 and then at 25,157, the level of the 200 Dema.