NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Thursday, February 20, 2025

The Nifty closed at 22,913.15, down 19.75 points (-0.09%), continuing its consolidation phase. If the index holds above the 22,600–22,770 support zone, this consolidation may persist for a few more sessions.

The index opened with a negative bias at 22,821.10, gradually climbed to an intraday high of 22,923.80, and settled at 22,913.15. Metal, PSU Banks, Auto, and Media sectors led the gains, while Financial Services, Banks, and IT were the top laggards. Market breadth remained positive, with 1,995 stocks advancing, 831 declining, and 78 unchanged. The top gainers included SHRIRAMFIN, NTPC, M&M, and BEL, while HDFCBANK, MARUTI, TECHM, and HCLTECH were the biggest losers.

Technically, momentum indicators signal a negative trend, with the index trading below key short-term and long-term moving averages. The Nifty formed a white candle on the daily chart but remained within a consolidation range. Key support lies at 22,770–22,600, and as long as the index holds above this zone, the consolidation may persist. However, a decisive close below 22,600 could resume the recent downtrend. On the upside, immediate resistance is at 22,950, and the index must sustain above this level to trigger a potential pullback rally.

Intraday support levels are at 22,860, 22,800, and 22,720, while resistance is at 22,950 and 23,150.

For positional trading, key levels to watch are support at 22,770–22,600 and resistance at 23,250–22,800.

BANK NIFTY TECHNICAL OUTLOOK

In the previous session, Bank Nifty closed at 49,334.55, declining 235.55 points, signaling continued weakness. Technical indicators suggest a negative trend, as the index remains below its short-term and long-term moving averages. A Doji candlestick formed on the daily chart, indicating market indecision. The immediate resistance is at 49,750, while key support lies at 48,750. A breakout beyond this range is necessary for the index to establish its next directional move; otherwise, it may continue consolidating within the 48,750–49,750 zone.

For intraday trading, support levels are at 49,150, 48,935, and 48,750, while resistance is seen at 49,400, 49,600, and 49,800.

Positional traders should watch for short-term support between 48,750–47,750, with resistance at 49,750–50,700.

In conclusion, Bank Nifty remains in a consolidation phase, and a decisive breakout beyond 49,750 or a breakdown below 48,750 will determine the next trend. Until then, traders should focus on key intraday levels for short-term opportunities.