NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 22 FEB 2023

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Nifty ended flat after a volatile trading session. Benchmark indices ended marginally lower in the volatile February 21st session. At the close the Sensex was down 18 points to 60,672 and the Nifty down 18 points to 17826. The bias remains negative as it dips back into the descending channel on the intraday chart. Also, the momentum oscillator RSI has entered a bearish crossover. However, the Nifty opened with gains, however selling pressure built up at higher levels as the day progressed and the Nifty closed down 18 points. Looking at the hourly charts, we can observe that the key hourly moving averages acted as stiff resistance in the 17900-17950 area and the morning rally fizzled out after hitting this resistance area. On the hourly momentum indicator, we can observe that positive divergence is developing, which is a sign that the selling pressure is easing. Therefore, the price and momentum indicators provide divergent signals and in such a scenario, consolidation is very likely. Consolidation range is likely to be around 18,150 to 17700. In terms of levels, 17900-18000 will serve as the immediate hurdle, while on the downside, the 17675-17625 coinciding with the 61.82% Fibonacci retracement level will serve as crucial support to watch out of short-term perspective. On the downside, immediate support is visible at 17600 , below which selling pressures may increase.

Resistance: 18200, 18300, 18400   

Support: 18100, 18000, 17900