Nifty opened on a positive note and continued to move up for whole part of the day and then corrected towards the end of the day and closed at nearly at the low of the day. In the mean time it made a two day low indicating that bulls might have tired out and that bears might have gained upper hand atleast for the short time. Nifty is still maintaining above the 15 day EMA which is signifying that bulls are still having upper hand, it is still maintaining above all the short term moving avarages indicating that bulls are still having upper hand. 5 day EMA is placed at 5095 so tomorrow it is going to offer resistance after which 15 day EMA at 5050 is going to give good support.
If you see the EOD chart of the nifty below, it clearly shows a clear heavy -ve divergence between the nifty and the RSI. There is huge -ve divergence and generally these type of heavy divergences occur when extreme bullish or bearish sentiments come into the market. These are clearly indicating that we are going to getting correction soon. It can also be seen that nifty has once again failed to pass above the 5180 and 5200 levels and this is the third time which it has failed in the last two months which is clearly suggesting that there are the curcial levels to be kept in mind in the days to come.
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