Nifty RSI Suggests Strong Momentum, Potential to Move Towards 19,450 in Short-Term
By Malvika Gurung
Investing.com — The domestic market witnessed stellar gains in the last week of June 2023, with benchmark indices hitting record highs for two consecutive sessions towards the end of the week amid positive global economic surprises and continued inflow of foreign investors in Indian equities, among other supporting factors.
Headline indices recorded its life peak of 19,201.7 points, surpassing the 19,200 mark on Friday, while scaled a record high of 64,768.58 points in the trading session on June 30, 2023, led by strong gains posted by auto, PSU banks and IT sectors.
The gauge of the top 50 Indian companies extended a bull ride for the fourth straight session on Friday, surging 2.9% in the period, and ended the session 1.14% higher.
The surge in the Nifty index followed a breakout from a period of consolidation, indicating a strong bullish reversal, stated Rupak De, Senior Technical analyst at LKP Securities, in a note provided to Investing.com.
The analyst notes that the overall trend appears positive in the near term as the index has consistently remained above its moving average.
Further, the momentum indicator Relative Strength Index (RSI) has shown a bullish crossover on the daily timeframe, suggesting strong momentum. Going ahead, Nifty prohibits a potential to move towards the 19450 mark in the short-term, indicating a further upward movement despite recent record highs.
However, on the downside, De sees support at 19000.
“Overall, the market is currently exhibiting bullish characteristics, with the Nifty reaching new highs as long as it sustains above 19000,” he added.
