Nifty ended with sharp gains on Wednesday, ending its two-session fall after the US President hinted at de-escalation in the Iran-Israel war. A positive divergence on the daily RSI indicates the possibility of short-term bullish momentum.
Rupak De, Senior Technical Analyst at LKP Securities, said the sharp rebound found support near the rising trendline on the daily chart, drawn from the June 2024 and April 2025 lows. The recent price action shows signs of fatigue, which is typical after a sharp move, as markets often consolidate before deciding the next direction, he said. “Although the broader trend still appears weak and tilted in favour of the bears, the index’s closeness to key support, along with the RSI divergence points to early signs of a potential recovery. On the upside, resistance is placed at 22,800, above which the index could move towards 23,000 and higher. On the downside, a decisive fall below 22,200 may revive bearish momentum,” De said.
