4 percent, effectively wiping out the gains of the previous three trading sessions. This sharp reversal was primarily attributed to escalating geopolitical tensions between the United States and Iran, which led to a surge in global crude oil prices. By the end of the session, the index had breached several critical moving averages, signaling a shift in market sentiment from bullish to cautious. Market data indicates that the sudden spike in volatility has put the bulls on the defensive as the index struggled to maintain its psychological support levels.
Critical Technical Levels for Nifty 50
On the daily charts, the Nifty 50 formed a 'Long Bearish Candle,' which technically engulfed the previous three days of positive price action. This pattern is often interpreted as a sign of strengthening selling pressure. The index slipped below its 20, 50, and 100-day Exponential Moving Averages (EMA) within a single session, although it managed to stay above the long-term 200-day EMA. According to pivot point analysis, the immediate support levels for the Nifty are identified at 25,386, 25,269, and 25,080. Conversely, if the index attempts a recovery, it's expected to face resistance at 25,766, 25,883, and 26,073.
Bank Nifty Performance and Key Indicators
The Bank Nifty index mirrored the broader market's weakness, forming a large red candle that overshadowed the gains of the preceding two sessions. While the index tested its 10-day EMA during intraday trade, it managed to hold onto most of its major moving averages. 53, moving below its signal line, which indicates a loss in upward momentum. On top of that, the Stochastic RSI has turned bearish. Pivot point data suggests that Bank Nifty faces resistance at 61,419, 61,675, and 62,090, while support is pegged at 60,589, 60,333, and 59,918. Fibonacci retracement levels further highlight support at 60,197 and 59,730.
Put-Call Ratio and Market Sentiment Shift
7 on February 19.7 or lower typically indicates that call writing is outpacing put writing, reflecting a bearish outlook among market participants. 60, falling below the reference line. The Moving Average Convergence Divergence (MACD) is on the verge of a bearish crossover, and the histogram is showing signs of receding momentum, suggesting that the internal strength of the index is currently waning.
Surge in India VIX and Market Volatility
46. This move took the volatility index above its key moving averages and the crucial 13 mark. Historically, a VIX level sustained above 13 indicates heightened anxiety and the potential for continued price swings in the near term. As long as the VIX remains elevated, market participants observe that the environment remains challenging for sustained upward movements. The increase in volatility is directly linked to the uncertainty surrounding global energy supplies and geopolitical stability.
Securities Under F&O Ban Period
In the derivatives segment, certain securities are placed under the F&O ban when their aggregate open interest exceeds 95 percent of the Market Wide Position Limit (MWPL). As of the latest update, SAIL and Samman Capital remain the only two stocks in the F&O ban list. No new stocks were added to the list, and no existing stocks were removed during the February 19 session. Trading in these securities is restricted to the unwinding of existing positions, and any increase in open interest is subject to penalties by the exchanges.
[DISCLAIMER_START] This news report is provided for informational purposes only and is based on market data and technical indicators available at the time of writing. It doesn't constitute investment advice, or a recommendation to buy, sell, or hold any security. Investors are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions.