Trade Setup For Feb 23: Domestic equity benchmarks Sensex and Nifty 50 India's nded the previous session and the week on a higher note driven by gains in financial and energy stocks amid optimism over trade deal progresses and India's participation in Pax Silica. This outweighed continued losses in information technology. The BSE Sensex added 316.57 points or 0.38% to settle at 82,814.71 and Nifty 50 gained 0.5% to close at 25,571.25. Intraday, both blue-chip indices gained 0.8%.
IT stocks posted fourth week of losses, on advances in artificial intelligence platforms like Anthropic's Claude. The Indian rupee ended 31 paise weaker at 90.986 against the dollar. INR worst performer today among Asian peers. For the week, the local currency depreciated 0.4%, after two weeks of strength. The broader markets were mixed with midcaps remaining in the green zone and smallcaps falling.
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Nifty 50 Outlook
The index formed a decent bullish candle with an upper shadow on the daily chart, indicating a bounce from lower levels while also highlighting supply at higher zones. It is currently trading below its 21, 50, and 100-day EMAs, with the next strong and reliable support placed near the long-term 200-day EMA around 25,250. In the near term, the index is expected to consolidate within a broad range of 25,000-26,000, maintaining a sideways bias, according to Bajaj Broking.
''Volatility remained elevated, with India VIX witnessing a spike amid lingering geopolitical concerns. On the downside, immediate support is seen at 25,350, followed by 25,200, which aligns closely with the 200-day EMA and could act as a key cushion. On the upside, resistance is placed at 25,650 and 25,720, where any pullback towards higher levels is likely to face selling pressure,'' said the brokerage.
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Bank Nifty Outlook
Bank Nifty displayed relative strength, pulling back from the lows while holding above its 21-day EMA near 60,380. This was mainly lead by PSU bank basket. The index formed a bullish candlestick that recovered nearly half of the previous session's losses, indicating active buying at key levels, though some profit booking was visible at higher zones, as per analysts.
''In the near term, the index is likely to trade within a broad range of 60,000-61,750, as long as it sustains above its key short-term averages. A decisive move beyond this range could trigger fresh directional momentum. On the upside, immediate resistance is placed at 61,400 followed by 61,750, while supports are seen at 60,800 and 60,500,'' said Bajaj Broking.
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