Nifty Overview for 15th April 2010

Yesterday, on the daily charts, NIFTY formed a Short Black Candlestick, which was a confirmation of the starting of consolidation phase in the market. This candlestick also signifies presence of indecision in the markets. Markets saw weak selling pressure with a very range bound of about 40-50 points. With RSI (Relative Strength Index) giving a SELL signal, along with a spurt in Volumes makes cautious about the future move of the market.

As result season has commenced, more and more stock specific and sector specific movements will be seen in the coming days. The last two candlesticks may turn as a consolidation or reversal, hence traders are suggestedf to trade with Strict Stop Losses in intraday and to Book almost 75% profits in their holdings.

Now, the next Intraday Resistance for NIFTY comes at 5330/5350/5380 levels. At the same time, 5300/5285/5260 will act as major Intraday Support levels.