Resistance @ 4350

The market has opened on a negative note but has bounced
back. The Nifty on the daily chart is trading in a channel,
which is in the downward direction. The Nifty is at the
lower end of the channel with a support at 4235 and a
resistance at 4350, which is the upper end of the channel.
We expect the momentum to be negative and volatility on
intraday basis. Market breadth is negative with 495
advances and 649 declines. Daily KST has given a negative
crossover and is trading above the zero line. On the daily
charts, support at 4159 and strong resistance are indicated
at 4523.


On the hourly charts, KST, a momentum indicator, has given
a negative crossover and is trading below the zero line.
Strong support at 4316 and a very strong resistance at
4400 are indicated on the hourly charts.


Aban Offshore has gained momentum and is likely to test
Rs2,800 on the upside. Reliance seems to be having
resistance around Rs2,260 and on the downside is likely to
test Rs1,850. Banking sector has gained momentum and is
expected to move downward.