Technical View: Nifty has formed a bullish candlestick pattern, know what will be the mood of the market on February 21

Technical View: Nifty50 traded in a range with a negative bias throughout the session today. It closed marginally lower on February 20. While India VIX declined sharply in the wake of minutes published by Federal Reserve officials last night. The index defended 22,900 levels on a closing basis for the fifth consecutive session. According to experts, if the index sustains above this level, then the chances of an uptrend in the upcoming sessions are high. If it crosses the first resistance of 23,000, a rally towards 23,200-23,400 cannot be ruled out. However, on the downside, 22,700 is expected to be a crucial support level for the index from here onwards.

Nifty opened over 100 points lower at 22,821. The index gradually recouped those losses amid rangebound trading. It closed 20 points lower at 22,913, forming a bullish candlestick pattern on the daily chart.

How can Nifty move on Friday, February 21

On the daily chart, Nifty has been stuck in the range of 22,700-23,050 for the last four trading sessions. According to Jatin Gedia of Mirae Asset Sharekhan , a decisive breakout from this range will set the trend for the upcoming sessions.

His outlook on the index remains positive. He expects this consolidation to continue upwards.

He believes that the broader market has improved. The market sentiment has been positive in the last few trading sessions. This suggests that the market is likely to continue rising.

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According to Nagaraj Shetti of HDFC Securities , a sustainable move above the initial resistance of 23,100 levels could confirm a short-term bottom reversal for the market. This could pull the Nifty to greater heights. Therefore, an uptrend is likely in the next 1-2 sessions, he said.

How can Bank Nifty move on Friday, February 21

Bank Nifty saw some profit booking after a day of sharp rally. The index fell half a percent to 49,335. It formed a doji candlestick pattern on the daily chart. This pattern is indicating indecision between bulls and bears.

For fresh gains, the index needs to sustain above 49,400. If this happens, the index can move towards 49,800. According to Anshul Jain of Lakshmishree Investments , a further breakout from this level can open the doors for a rally up to 50,600.

Until then, dips near support will create good buying opportunities, he said. He advised that traders should watch for a decisive move above resistance to confirm further upside.

Meanwhile, India VIX, the volatility index, fell 4.78 per cent to 14.68. This is a crucial level for further direction. If the VIX falls further, the bulls may get some relief.

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