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Trading as per the support and resistance levels may be quite useful for intraday and Positional trading in stocks and index. Resistance is termed as the level where the stock generally gets some opposite force before it can go further up. A support is the level where a stock get buying interest before it can fall further. Under the normal market conditions or in the absence of some extremely panic news the support and the resistance levels can act as good levels for initiating the buying / selling. In general it’s advisable to buy the stocks at support levels and sell at the resistance levels. In Intraday trading there are few support and resistance levels known as Support1 Support2, Resistance1 Resistance2 etc.
The support and the resistance levels for Nifty can be in color coded form can be seen in the table below.
Nifty Levels for (7 july 2011) are as follow

Pivot Level = 5640 Support1 = 5613 Resistance1 = 5663 Support2 = 5590 Resistance2 = 5690 Support3 = 5563 Resistance3 = 5713

the basic formula’s used for calculating the support and resistance is:-
Pivot point (P) = (H + L + C) / 3
First resistance level (R1) = (2 * P) L
First support level (S1) = (2 * P) H
Second resistance level (R2) = P + (R1 S1)
Second support level (S2) = P (R1 S1)

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