The Nifty managed a decent expiry close last Thursday, ending at 7,868.50. Global markets too seemed to have settled down after a bout of volatility. All eyes are now on the Reserve Bank's monetary policy review meeting scheduled for Tuesday.
Technically, the shorter term setups (as shown on the daily chart) suggest 8,055 as the levels to watch out this week.
8,055 is the previous swing top and also coincides with the yellow resistance/supply lines drawn across last few months' price action.
Daily Momentum indicators too have had bullish crossovers after registering bullish divergences. This indicates that an upward shift can happen once 8,055 is decisively broken on the Nifty.
Expect prices to scale back till 8,250-8,300 resistance zone if Nifty breaks 8,055. Till then, expect a range between 7,539 and 8,055.
(Sarvendra Srivastava is the head of technical research at www.phisense.com)