The Nifty 50 formed a red candle on both daily and weekly charts, signalling a lack of strength in the upside recovery, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Intermediates Ltd.

The Nifty had formed a triple bottom around 22,780 on the daily scale, which indicates strong support according to Hrishikesh Yedve.

“The 21-Day Simple Moving Average is placed around 23,260, making the 23,260-23,300 zone an immediate hurdle,” Yedve said.

A decisive move above 23,300 could confirm a near-term bottom reversal pattern, according to the analyst.

The Bank Nifty had formed a red candle on both daily and weekly charts, indicating weakness, Yedve said. “Sustaining below 48,700 could trigger further downside towards 48,000, while 50,000 remains a key resistance,” Yedve said.

He recommended to traders to closely monitor the aforementioned levels for potential trading opportunities.

Market Recap 

The Indian equity benchmark indices closed lower on Friday, registering the longest losing streak in two years, as Sun Pharmaceutical Industries Ltd. and Bharat Electronics Ltd. stocks dragged.

The NSE Nifty 50 ended 102.15 points, or 0.44% lower at 22,929.25, and the 30-stock BSE Sensex closed 199.76 points, or 0.26% down at 75,939.21.

The NSE Nifty Bank also closed 260.40 points, or 0.53%, lower at 49,099.45.

For the weekly overview, Nifty fell 2.8% during the week, marking this the worst week in this year. Nifty Realty emerged as the top sectoral loser for the week, falling more than 9% for the week.

Further, Nifty Midcap 150 registered the worst week since Covid. Nifty Realty logged its worst week since March 2024. Nifty Oil and Gas fell nearly 6% for the week, marking the worst weekly fall in the last three months.

F&O Cues

The Nifty February futures were down 0.59% to 22,995 at a premium of 66 points, with the open interest up by 0.65%.

The open interest distribution for the Nifty 50 Feb. 20 expiry series indicated most activity at 25,500 call strikes, with the 22,000 put strikes having maximum open interest.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the eighth straight session on Friday as they offloaded stocks worth approximately Rs 4,294.7 crore.

Domestic institutional investors stayed net buyers for the eighth straight session as they mopped up equities worth Rs 4,363.9 crore, according to provisional data from the National Stock Exchange

Major Stocks In The News

  • Bharat Heavy Electricals: The company received an order worth Rs 6,700 crore from Singareni Collieries Company for the engineering, procurement, and construction package for the Singareni Thermal Power Project.

  • JSW Energy: The National Company Law Tribunal approved the company’s resolution plan for the KSK Mahanadi Power Company.

  • Zydus Lifesciences: The United States Food and Drug Administration closed its inspection at company’s API manufacturing plant at Ambernath, Maharashtra.

  • Vodafone Idea: All AGR related matters related to telecoms at the Supreme Court has been closed.

Global Cues 

Stocks in the Asia-Pacific region traded with caution as trade tensions loomed between the US and European Union, following Donald Trump’s threat to impose global reciprocal tariffs.

Japan’s Nikkei was down 85 points, or 0.22% at 39,063, while South Korea’s Kospi rose 0.49%, or 12 points to 2,604 as of 6:45 a.m. Future contracts in China hinted at a positive start, while those in Hong Kong were poised to open lower.

The US President cited barriers in the EU as an example of the unfair trading rules that the US is looking to respond to. However, European Commission President Ursula von der Leyen called the latest threat a “step in the wrong direction”.

“The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies,” Leyen said.  

The FOMC meeting minutes, US initial jobless claims, crude oil inventories, manufacturing PMI, and services PMI are among some of the important data that investors will look out for in the coming week.

On Wall Street, the stocks ended mixed after retail sales revived bets on Federal Reserve rate cuts. The S&P 500 and The Dow Jones Industrial Average fell 0.01% and 0.37%, respectively. The tech-heavy Nasdaq Composite rose 0.41%.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.2% up at 106.73.

On the commodity front, crude oil prices fell as Trump pushes to end the three-year-old war in Ukraine. The Brent crude fell 0.20% at $74.59 a barrel as of 6:55 a.m. IST, and the West Texas Intermediate was down 0.33% at $70.51.

Currency Update

The Indian rupee strengthened by six paise, closing at 86.83 against the US dollar on Friday. This marks an improvement from Thursday’s close of 86.896. The rupee’s performance reflects positive market sentiment and potential support from the Reserve Bank of India.

At market open on Friday, the domestic currency strengthened by 5 paise against the US dollar, opening at 86.84.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision

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