This index gave two daily closes below 4300, the lower range of consolidation. Weekly chart given below also portrays a lacklustre picture as RSI has been trending flat for over many days now. All this implies that traders and investors are still not hopeful of early recovery in this economy. Next earnings season may bring some fireworks if financials come out with some positive news without that “suitable” accounting methodology. Until then there are no significant triggers visible in the near future except economic data reports from time to time.
Immediate resistances are at 4380, 4413 and then 4521. If it manages to close above 4413 then there would be some hope of breaking out on upside. But further, a move above 4521 would be needed to breakout on the upside.
Support at 4110 is very crucial. A close below here would be a signal to prepare for a drift towards previous lows in medium to long term.
