Markets are Overbought !!!! Trade with caution

Well as I posted yesterday that RSI indicates that markets may move up a lil bit today...and they will reach in overbought territory..this xactly happened today..markets opened weak...went high and then went low..Finally closed at almost the yesterday's close levels....Now this has created a pattern called Doji..which i have already explained earlier..for more on Doji click here... Doji is generally considered as reversal pattern...This we see that formation of Doji indicates that markets might fall on Monday..i.e. a correction may occur...this is also confirmed by RSI which indicates overbought condition....

Base Chart Source: http://www.icharts.in/charts.html

Both Doji and Overbought conditions are depicted in above chart..marked by blue circles.....

Now, The markets may move up on monday and then move down to close at lower levels...or they may move a bit for couple of day then move down...

Also possible is that the down trend may be very small and markets again move up..and reach a new high till diwali...and then correction may take place towards October end....but for all these ...we have to wait and see how markets behave in next 2 days...