Tech View: Nifty moves closer to 21,500 hurdle point. What traders should do on Wednesday

NEW DELHI: Nifty on Tuesday ended 92 points higher on the third day of the rally and formed a small green-bodied candle on the daily charts.

“The short-term trend nevertheless remains down. Momentum readings like the 14-day RSI too remain in decline mode after dropping sharply from overbought levels last Wednesday. This calls for caution in the near term. Nifty would need to cross the recent highs of 21,593 to reverse the current downtrend. Crucial supports to watch for re-emergence of weakness are at 21,329-21,232,” Subash Gangadharan of HDFC Securities said.