NIFTY OUTLOOK & TRADING FOR 21 FEB TO 25 FEB 2022

WEEKLY RESISTANCE FOR NIFTY: 17300, 17500, 177000

PIVOT POINT: 17200

WEEKLY SUPPORT FOR NIFTY:  17000, 16800, 16600

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 17300, 17400, 17500

PIVOT POINT: 17250

DAILY SUPPORT FOR NIFTY:  17200, 17100, 17000

DAILY CHART FOR NIFTY

The Indian stock market started the week gapping lower amid the slowdown in global markets. The stock markets saw a sharp sell-off, with the broader indices plummeting in early trading and Nifty breaking the psychological support at 17000 marks. Gradually, selling intensified and the index continued to fall to hit a new calendar year low. Finally, the benchmark index settled in red slightly below 16850 with a massive drop of over 3%. On Tuesday, the market halted free fall and gained some momentum in early trading amid a strong recovery in the fallen stocks. The domestic market shrugged through the mixed global signals and advanced with authority. The benchmark Nifty50 index was up over 3% to end the day at a level of 17352. On Wednesday, our market started the session on a volatile front despite positive global cues, but quickly found its feet to shoot higher. Some corrections were triggered in the second half, erasing any gains in the benchmark Nifty50 index. After an intense tug-of-war between bulls and bears, Nifty ended the day muted down just 0.17% at 17322. On Thursday, our domestic market endured a lackluster day of trading amidst the weekly schedule that echoed the mixed global signals. The benchmark index remained range-bound throughout the session with no clear direction. Finally, the lackluster session ended on a negative note just above the 17300 level. On Friday, the market ended lower for the third straight day on February 18, dragged by pharmaceutical, real estate, oil and gas stocks. Finally, the Sensex was up 59 points at 57832 and the Nifty was up 28 points at 17276.

NIFTY: A STRONG SUPPORT WILL BE @ 17000; STRONG RESISTANCE LEVEL SEEN @ 17800

The index resisted breaching the 17500 level and saw some correction, suggesting a stable wall. On the downside, 17100 is expected to provide crucial support for the index and until the mentioned zone is not breached, a range bound move is expected. Looking ahead, indecisiveness was felt among market participants looking at the technical structure and moods.

TECHNICALLY SPEAKING

Nifty remains in a medium-term uptrend while consolidation is expected in the short-term. The trading range is between 17000 and 17500. Expect limited upside potential for February series with reversal only seen above 17500. An inverted hammer pattern has formed on the daily chart of Nifty, often indicating a bullish reversal. On the downside, 17200 could serve as support for the falling market. Trend should remain bullish for the coming days as long as 17200 holds. On the top end there is a key resistance at 17500. The market is stuck in a range between 17200 and 17600. Until we cross either level, we won't see any meaningful movement. A break on one side results in a 300-400 point move.