NIFTY has breached 4610 level, but failed to close above this because of overbought situation. The 5 day RSI is above 87 and 5 week RSI is 97, suggesting higher level profit booking. The ongoing rally may be terminated, but it can resume its upward movements on Wednesday. The key support level for Nifty will be at 4518, 4456 and 4416. Resistance will be at 4650 and 4686.
US dollar is getting strength against major currencies and it will adversely affect the precious metals and Indian Rupee. Pharma and large cap IT stocks may get renewed buying interest because of weak rupee and oversold situation of these sectors too.
