The April series has been an outstanding month for the benchmark indices, as huge buying was witnessed across the board. In April we saw nifty crossing its long term 200-DMA which in indeed is a very positive sign for the Indian markets.

Global cues remained mixed as we saw Asian, European and US markets trading lower on fears of the Swine flu and renewed credit concerns.

Financial stocks were also volatile after the Federal Reserve asked biggest bank in the US to conduct stress test to determine how they performed.

Despite such news, the Indian markets continued to show positive sign but the volatility increased as the markets were placed in the overbought zone. The benchmark indices ended the April series with 17.5% gain while the Nifty surged 15%.

Incidentally in the April month FIIs remained net buyers in the cash segment whereas mutual funds were net sellers booking profits at higher levels. Although the benchmark indices were above the overbought area, the undertone remained bullish. Technically the pattern they were forming in April was higher tops and higher bottoms.

In April month we saw markets forming a base at every lower levels and this rally was totally driven by the inflows of FIIs and short-covering in the rate sensitive sectors. Three important levels - 3300 - 3110 - 2965 - acted as a strong area for Nifty in April, from where we saw buying taking place.