Nifty Overview for 16th April 2010

Yesterday, on the daily charts, NIFTY formed a Black Candlestick, which was a confirmation of the presence of weakness in the market. The last two indecisive candlesticks got their confirmation of a reversal of the trend from yesterday’s candlestick formation. NIFTY broke its very important support levels of 5300 and 5285, and made a low of 5265.60. Market opened strong and reached till the levels of 5373.15, but in the later half of the trading session, weakness crept in, and after breaching the important support levels, it managed to close at 5273.60.

With RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) giving SELL signals, along with a spurt in Volumes alerts about the weakness knocking at the doors. NIFTY made a low nearest to its 20-Days EMA (Exponential Moving Average) of 5268.17, which if breaches, a sure sign of weakness in the markets will be there.

Now, the next intraday resistance for NIFTY comes at 5285 / 5300 levels. At the same time, 5260 / 5185 will act as major intraday support levels.

What does Indicators say:

1. MACD (26 days): Its value is 64.50, which is above 0 signaling upward movement, as Short Term Moving Average is above the Long Term Moving Average.
2. RSI (14 Days): It is at 54.28, which is above the levels of 50, indicating strong Bull Trend.
3. Simple Moving Average (50 Days): It is at 5070.69 and NIFTY is trading above it.
4. Exponential Moving Average (20 Days): Its value is 5268.17, and NIFTY is trading
   above it, hence giving Bullish Indication.