The Indian stock market is likely to begin trading on a guarded note on, February 19, as suggested by Gift Nifty trends. The index was trading at about the 22,960 level, just shy of 12 points of the Nifty futures' last close, which forecast a flat beginning for benchmark indices—Sensex and Nifty 50.
Market Recap & Expectations
The domestic markets declined marginally on Tuesday,
February 18, with the Nifty 50 remaining above the 22,900 mark. The Sensex fell
marginally by 0.04% to close at 75,967.39, while the Nifty 50 closed 14.20
points down at 22,945.30.
Sensex Outlook
Sensex found support close to the 75,500 level before it
recovered to close close to 76,000. Experts feel that the near-term market
trend is unclear, but 75,500 will be a very important support area.
If the index holds above this level, a pullback to 76,000 -
76,300 can happen.
A breakdown below 75,500 will turn sentiment weak, with
chances of a further fall to 75,200 - 75,000.
Nifty 50 Analysis
Nifty 50 remains confused about the direction, and traders remain watchful due to volatility.
Principal Resistance: 23,000 - 23,150
Current Support: 22,800 - 22,900
Breakout Point: Nifty 50 should convincingly breach 23,140
(which is the 38.2% Fibonacci retracement point) to fortify bullish forces.
In spite of Tuesday's flat close, the development of a
Dragonfly Doji on the daily chart hints at a potential reversal of the trend.
The daily RSI also shows a bullish divergence, which indicates higher chances
of a rise.
Bank Nifty Outlook
Bank Nifty fell 171.60 points (0.35%) to close at 49,087.30, registering a Bullish Harami candlestick around its support area.
Key Support: 49,000 - 48,500
Immediate Resistance: 49,800 (20-day moving average)
Market Sentiment: While Bank Nifty has not yet established a clear bottom, the base building indicates weakening selling pressure. A breakout above 49,800 would indicate a bullish reversal.
Market Strategy & Investor Sentiment
Based on the prevailing market structure, professionals recommend that:
The "sell on rise" strategy will remain valid as long as Nifty 50 holds below 23,150.
If market breadth and major supports stand firm, this
strategy can be switched over to a "buy on dip" strategy.
Market participants need to observe worldwide market trends,
FII activity, and local indicators closely.
Disclaimer: The opinions expressed are based on trends in
the market and specialist views. Investors must consult qualified financial
advisors prior to making any investment decisions.
