NIFTY TECHNICAL OUTLOOK

(Based on Market Closing on Friday, February 21, 2025)

The Nifty closed at 22,795.90, down 117.25 points (-0.51%), extending its downtrend. If the index breaches the 22,770 support level, further declines may follow.

Nifty opened on a weak note at 22,857.20, gradually declined, and hit an intraday low of 22,720.30 before closing at 22,795.90. Most sectors ended in the red, except for metals. The biggest sectoral losers were auto, pharma, PSU banks, and realty. Market breadth remained negative, with 1,065 stocks advancing, 1,686 declining, and 125 unchanged. Among the top gainers were HINDALCO, TATASTEEL, SBILIFE, and EICHERMOT, while M&M, BPCL, ADANIPORTS, and TATAMOTORS were the major losers.

Momentum indicators remain in the oversold region, and the index is trading below both its short-term and long-term moving averages, which, along with the formation of a black candle on the daily chart, signals continued bearish momentum. Key support lies in the 22,770–22,600 range, and if the index falls below these levels, the downtrend could extend. However, if it holds above this support, consolidation may follow. The nearest intraday resistance is at 22,825, and the index must sustain above this level for a potential pullback rally.

  Intraday Levels: Support: 22,720, 22,650, 22,575 Resistance: 22,825, 22,920, 23,000

  Positional Trading: Short-term Support: 22,770 – 22,600 Resistance: 23,250 – 22,800

BANK NIFTY TECHNICAL OUTLOOK

Bank Nifty closed at 48,981.20 in the previous session, down by 353.35 points, signaling a negative market trend. The index continues to trade below both its short-term and long-term moving averages, with a black candle formation on the daily chart that closed below the previous day’s close, suggesting bearish momentum. The nearest short-term support is at 48,750, and if the index closes below this level, the downtrend could persist in the coming days. On the other hand, if the index holds above this level, it may consolidate for a few more days before a potential direction is established. A positive trend will be confirmed only if the index closes above 49,750.

For intraday traders, key support levels are at 48,800, 48,600, and 48,400, with resistance levels at 49,060, 49,250, and 49,450.

For positional traders, short-term support lies between 48,750 and 47,750, while resistance is seen at 49,750 and 50,700.

IN conclusion Bank Nifty remains under pressure, and its future direction largely depends on its ability to maintain support at 48,750. A break below this could lead to further declines, whereas a rise above 49,750 would signal a potential trend reversal.