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The Nifty 50 index showed a strong recovery from its intraday low on February 12, but despite this bounce-back, the index closed 27 points lower, marking its sixth consecutive session of decline. Market analysts suggest that while the overall sentiment remains bearish, certain chart patterns indicate a potential bullish reversal in the near term.
If Nifty 50 manages to stay above 23,000 on a closing basis, it could find immediate resistance at 23,200-23,300. However, if it fails to hold this level, the index may retest its recent low of 22,800, which could act as a crucial support level.
Key Support and Resistance Levels for Nifty 50
Here are the pivot-based support and resistance levels for traders to watch:
Nifty 50 Support Levels (Pivot Points)
22,864
22,782
22,650
Nifty 50 Resistance Levels (Pivot Points)
23,128
23,210
23,342
Key Levels for Bank Nifty
The Bank Nifty index also saw some volatility, and traders should keep an eye on the following levels:
Bank Nifty Resistance Levels (Pivot Points)
49,675
49,904
50,273
Bank Nifty Support Levels (Pivot Points)
48,936
48,707
48,337
Bank Nifty Resistance Levels (Fibonacci Retracement)
50,367
51,148
Bank Nifty Support Levels (Fibonacci Retracement)
49,278
47,880
Options Data Analysis
Nifty Call Option Data
Highest Call Open Interest (OI): 1.36 crore contracts at 24,000 strike (Key resistance level).
Nifty Put Option Data
Highest Put Open Interest (OI): 1.15 crore contracts at 22,500 strike (Strong support level).
Bank Nifty Call Option Data
Highest Call Open Interest (OI): 16.23 lakh contracts at 51,000 strike (Key resistance level).
Bank Nifty Put Option Data
Highest Put Open Interest (OI): 13.66 lakh contracts at 49,000 strike (Key support level).
Market Expert Views: Bearish Trend Persists, but Strong Support at 22,800
Market experts believe that the overall trend remains weak, but Nifty 50 has strong support at 22,800. If the index breaks below this level, further downside may be triggered. On the upside, Nifty must cross 23,200 to gain momentum toward 23,300 and beyond.
FII and DII Fund Flows
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) continue to influence market movements. Tracking their buying and selling activity can provide insights into market trends.
India VIX: Market Volatility Remains Elevated
The India VIX, which measures market volatility, rose 0.17% to 14.9, marking its third consecutive session of increase. This rise in volatility suggests that market uncertainty remains high, and traders should exercise caution.
Put-Call Ratio (PCR): Signs of Market Mood Shifting
Nifty PCR rose to 0.75 (from 0.69 in the previous session).
A PCR above 0.7 indicates bullish sentiment, while a PCR below 0.7 suggests bearishness.
While the ratio is still below 1, its rise indicates that the market may be preparing for a potential short-term rebound.
Stocks Under F&O Ban
Stocks in the Futures & Options (F&O) ban list are those where derivative contracts exceed 95% of the market-wide position limit (MWPL).
New Additions to the F&O Ban List:
None
Stocks Already in F&O Ban:
Manappuram Finance
Stocks Removed from F&O Ban:
None
Final Outlook: Nifty at a Crucial Crossroad
Immediate Support: 22,800
Immediate Resistance: 23,200
Market Trend: Weak but showing early signs of recovery
Volatility: High, as reflected in India VIX rise
Traders should watch for breakouts above resistance levels or breakdowns below key supports to make informed trading decisions.
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