Nifty has formed a rising wedge in Daily graph which is a bearish pattern to develop. Trades near resistance line around 5500. Breakdown below 5350 would signal a downtrend ahead, at least for short-term.
RSI is showing negative divergence –
14-Day RSI shows lower highs against higher tops in Sensex which is a bearish divergence. Any time such divergence is seen Caution is advised as prices may reverse their trend. In such formations a breakdown is normally awaited and 5330-5350 is a support area below which Sell signal would be clear.