Nifty Weekly Technical Levels for Week 3 Jan 2011

Wishing All Readers a Happy and Prosperous New Year 2011.

Nifty Daily Chart

Nifty is highly overbought on Hourly Charts and a correction till 6060 can be seen in coming week as it is fibo levels from low of 5690 to high of 6147 we have witnessed in recent rally. Risk to Reward ratio is not in favor of entering new longs as of now.

MACD is coming in positive region and RSI is showing negative divergence on Daily chart as marked in above chart.

Traders holding Long position should keep a SL of 6060 on all Longs as seen in below chart 6060 is the level to be watched.

On Upside above 6155 we can see levels of 6194 and 6253 on Weekly Levels.

Nifty Weekly Pivot:6088

Nifty Weekly Resistance:6194 and 6253

Nifty Weekly Support:6060 and 5923

For 3 Jan 2011 trading

Long above 6172 Tgt 6194  and

Short Below 6128 Tgt 6109 and 6089