Market cues: There was a sharp recovery in Nifty 50 a day after a huge fall. It closed yesterday with a gain of 0.83 percent. This marked a good start to the week on 16th February. The benchmark index also formed a bullish reversal pattern and climbed above important moving averages, accompanied by a positive crossover in the RSI. However, India VIX is signaling caution for bulls. The index needs to cross 25,750 and remain above it to close the bearish gap of February 13 to move towards 26,000. Experts say that until this happens, consolidation may continue with range-bound trading. There is important support for Nifty at 25,500–25,470.
Here we are giving you some such figures on the basis of which it will be easy for you to catch profitable deals.
Key support and resistance levels for Nifty
Support based on pivot point: 25,460, 25,384 and 25,260
Resistance based on Pivot Point: 25,708, 25,785 and 25,908
Nifty 50 formed a long bullish engulfing candlestick pattern on the daily charts. This is a bullish reversal formation that appeared after a downtrend, indicating a possible trend reversal. The index climbed above all important moving averages (20-, 50-, and 100-day EMAs) as well as the midline of Bollinger Bands in the same session, although it is still inside the bearish gap of February 13. The RSI moved above the reference line at 50.87, but the Stochastic RSI maintained a bearish crossover. MACD maintained its positive crossover. However, the histogram indicated losing momentum. All this suggests improving sentiment, although confirmation through follow-up buying is needed.
bank nifty
Resistance based on pivot points: 61,047, 61,318, and 61,757
Support based on pivot points: 60,168, 59,896, and 59,457
Resistance based on Fibonacci retracement: 61,160, 62,075
Support based on Fibonacci retracement: 60,000, 59,452
Bank Nifty followed a similar pattern to Nifty 50 and closed well above all important moving averages. It rose 1.27 percent and indicated a healthy bullish move after recent consolidation. The index also closed above 60,900, which is the upper end of its consolidation range. Also, it remained above the falling support trendline. RSI rose to 60.4, while MACD maintained its uptrend with a healthy signal from the histogram. All this shows strengthening momentum and scope for further upside, provided broader market conditions remain supportive.
Stock Market Live Update: Gift Nifty is giving signals, Indian market may start flat
FII and DII fund flows
Nifty Put-Call Ratio
The Nifty Put-Call Ratio (PCR), which indicates the mood of the market, increased to 1.11 on February 16, whereas it was 0.65 in the previous session. A PCR increase or greater than 0.7 or crossing 1 means that traders are selling more put options than call options, which generally indicates strong bullish sentiment in the market. If the ratio falls below 0.7 or rises towards 0.5, it indicates that selling in calls exceeds selling in puts, indicating a bearish mood in the market.
India VIX, which measures market fluctuations, remained at a high level. It remained well above all important moving averages, prompting caution for bulls. Yesterday it increased by 0.28 percent to reach 13.33. Experts say that as long as VIX remains above the zone of 12, there will be a risk for the bulls.
Stocks covered under F&O ban
Restricted securities under the F&O segment include those companies whose derivative contracts exceed 95 per cent of the market wide position limit.
Newly included stocks in F&O ban: None
Stocks already included in F&O ban: SAIL, Samman Capital
Stocks removed from F&O ban: None
Disclaimer: The views expressed on Moneycontrol.com are the personal views of the experts. The website or management is not responsible for this. Money Control advises users to seek the advice of a certified expert before taking any investment decision.