StockEdge's Morning Market Analysis - 17th Feb
The Nifty lost 102 points on Friday, closing at 22,929, as selling pressure intensified. The entire 1,000-point pre-budgetrecovery was erased, dragging the index back to its 22,800 support zone. Large-caps held up, but midcaps and smallcaps took a beating, with smallcaps down 10% and real estate down 9% for the week. Bank Nifty and Metals outperformed, while IT remained stable.
Market breadth was extremely negative, with most stocks trading below their 200DMA. The Nifty 500 market breadth is in the extreme oversold zone. Meanwhile, FIIs remained heavy sellers, offloading โน4,300+ crore worth of equities on Friday.
Technical View: ๐
The 22,800 level has been tested 3 - 4 times in the last 1 month, making it a crucial support. Multiple technical studies coincide at this support zone. 22,775-22,800. The past few days - all rallies were sold into and the minor resistances also faced bear pressure. On the upside, immediate resistance lies at 23250, with a stronger hurdle at 23,400-23,500.
The indicators are heavily oversold, The dollar index has dipped to 106+ levels, The market breadth is also signalling extreme oversold levelsโraising the chances of a short-term bounce ๐. If 22,775 - 800 holds, a rebound toward 23,500-24,000 is possible.
Conclusion & Trading Insight ๐ฏ
The market is at a make-or-break level, and the coming sessions will decide whether Nifty holds 22,800 or breaks lower. Given the studies, chances of rebounce is high. In case 22800 breaks on a closing basis, we may see a deeper cut to 21800 levels.
Levels -
Nifty
Support 22800, 22600
Resistance 23250, 23400
To view Nifty 50, click here https://sedg.in/4t3dnhcq
Bank Nifty
Support 49000, 48700
Resistance 49350, 49500
To view Nifty Bank, click here https://sedg.in/es5ixrjg