Nifty too trudged sideways between 2550 and 2850 last week. A spurt in the early part of next week will take the index up to 2958 or to the 50-day moving average at 3150. A reversal below the first resistance would provide the opportunity to initiate fresh shorts in the index.
However, if the Nifty declines below 2500, it would imply that the down move from the 3240 peak has resumed and the downward targets in this case are at 2365 and 2083. The preferred view is that the index moves sideways between 2500 and 3500 over the medium-term.
RSI-2
