Tech View: Bullish crossover in RSI highlights Nifty’s strength. What traders should do on Thursday

Nifty on Wednesday ended 36 points higher to form a small positive candle with minor upper and long lower shadow on the daily chart.

The short-term trend of Nifty continues to be positive. One may expect further upside in the coming sessions and any dips down to the support of 19,500 is likely to be a buy-on-dips opportunity. The next upside levels to be watched are around 19,800, said Nagaraj Shetti of HDFC Securities.

What should traders do? Here’s what analysts said:

Rupak De, LKP Securities
The bullish crossover of the 21EMA and 55EMA has persisted, signaling an ongoing bullish trend. Additionally, a bullish crossover in the RSI highlights the index’s strength. In the short term, Nifty may target levels of 19,750 or even 20,000. On the downside, key support rests at 19,440, and the market is expected to maintain a buy-on-dips strategy as long as this support level holds.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Technically, Nifty took support near 19,500 and bounced back sharply. A promising intraday reversal formation is indicating a strong possibility of further uptrend from the current levels. For the trend-following traders now, 19,550 would be the trend-decider level, above which the index could rally till 19,650-19,700. On the flip side, fresh selling pressure could be seen after the dismissal of 19,550, and below the same it could slip to 19,500-19,460.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The intraday correction found buying interest at the key hourly moving averages placed around 19,500. We believe that the overall trend is positive, and these dips are likely to be bought into. On the upside we expect the Nifty to target levels of 19,650 – 19,700 from a short-term perspective. In terms of levels, 19,490 – 19,520 shall act as a crucial support and 19650 – 19700 shall act as an immediate hurdle.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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