An analysis of movements in prices of Nifty index, using relative strength index indicator

Abstract

Technical analysis is conducted to predict the price movements in stocks in future. There are so many technical analysis tools which help the investors to pick the right stock at right time. Such analysis is based on different charts and indicators. Historical data of 249 days for the period of1 June 2021 to 31 May 2022was collected from the website of NSE India for conducting the research. Relative strength index indicator which indicates under price, overprice or optimum price of shares was applied on this data. In this research, we used Microsoft Excel in finding the values of RSI. The result shows that RSI indicators is trustworthy to understand the future predictions of Nifty Index. This study indicates that RSI indicator is helpful for the investors to categorize the current movements and risks connected with the stock market. Traders and investors can use this indicator for better trading.