Gift Nifty 50 is in a strong uptrend, but technical indicators suggest the rally may be stretched. The Relative Strength Index stood at 80.53 at USD 24,364, a level described in the analysis as severely overbought. A Doji candle at the same price and declining volume during the final five-hour pushes higher were also flagged as possible signs of fading momentum.
Several measures still support the bullish trend. The ADX was 53.32, with the positive directional indicator well above the negative one, and the price remained above its 20-, 50- and 200-period simple moving averages. The SuperTrend level was USD 23,840.99, while the 20-period average was around USD 23,680. The analysis places a potential support zone between USD 23,680 and USD 23,840.
On the upside, the price was testing the upper Bollinger Band near USD 24,504. The analysis identifies USD 24,752 as historical all-time-high resistance, with USD 24,390 marked as a recent swing high. It also lists a possible extension to USD 25,000 if the advance continues.
The risk assessment highlights a bearish divergence in the Money Flow Index, which was 38.18 as price made higher highs. It warns that a sharp pullback could catch late buyers, while noting that short positions would be counter to the strong trend. The report therefore marks USD 24,000–24,500 as a no-trade zone, describing both new longs and shorts there as carrying significant risks.
If the price retreats, the analysis lists Fibonacci retracement levels at USD 23,555.52, USD 23,297.75 and USD 23,040.18. It notes that the 38.2% retracement near USD 23,555 aligns with the Kijun-sen around USD 23,516. The report says traders should monitor whether the RSI cools without the price structure breaking, as well as whether the MACD histogram turns negative and the MFI falls further.
Sources: Investing.com News.