Nifty Overview for 20 April 2010

Yesterday, on the daily charts, NIFTY made a Black Opening Marubozu Candlestick (it is formed when Opening is equal to the High made by the prices in a day and at the same time formed a higher low and made managed to close above th day's low, but not above the day's opening or high) , which signals an initial phase of a bearish continuation pattern. It again breached its very important support of 5185, by making a low of 5160.90. Market opened flat at 5279.05, breached its intraday supports of 5235 and 5210, but at the end of the trading session managed to close at 5203.65.

With RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) giving SELL signals, along with a spurt in Volumes alerts about the weakness in the markets. Even RSI (Relative Strength Index) is now below 50, which is a Strong SELL Signal. NIFTY broke its 20-Days EMA (Exponential Moving Average) of 5267.64, and is falling towards its 50-Days SMA of 5085.42.

Now, the next intraday resistance for NIFTY comes at 5235 / 5350 / 5272 levels. At the same time, 5185 / 5160 / 5135 will act as major intraday support levels.

What does Indicators Say?

1. RSI (14 Days & 9 Days): The Values are 46.46 and 58.16, respectively, RSI's Value below 50 is a strong SELL Signal.
2. MACD (26 Days & 12 Days): Their Values are 44.66 and 71.81, respectively. a negative crossover is indicated by both the Moving Averages.
3. +DI: 16.72, -DI: 24.14, ADX: 31.48. A negative crossover is seen, as Negative Directional Index (-DI) has crossed Positive Direction Index (-DI) and has moved above it.
4. SMA (50-Days) & EMA (20 Days): The values of these two indicators are 5085.42 and 5261.55. 20-Days EMA has already generated a SELL Signal, whereas 50-Days SMA is still in positive territory, and as the EMA has moved above the SMA it is an altogether SELL Signal.