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* Equity benchmark indices recovered into positive territory in the last hour of trading after experiencing eight consecutive sessions of losses. Nifty ended slightly higher, rebounding over 1% or 250 points from its intraday low, while the Sensex bounced back 702 points from its low.

* This recovery was driven by a turnaround in major stocks like HDFC Bank, Coal India, and Reliance Industries (RIL). However, the market experienced intraday volatility due to global trade uncertainties, concerns over the US imposing reciprocal tariffs, moderating earnings, and persistent foreign outflows.

* Nifty gained 30 points or 0.1%, closing at 22,959, after hitting an intraday low of 22,725. Sensex rose by 57 points or 0.10%, closing at 75,996, after touching an intraday low of 75,294. Both Nifty mid-cap and small-cap indices bounced back into positive territory, recovering nearly 3% from their intraday lows.

* The Nifty 500 stocks' advance-decline ratio was 1:1, indicating short covering at lower levels after both the Nifty mid-cap and small-cap indices had fallen by nearly 10% in recent sessions. Finance Minister Nirmala Sitharaman addressed investor concerns regarding foreign institutional investors (FIIs) selling, assuring that India continues to deliver strong returns to investors who are booking profits.

* Globally, both Asian and European markets showed mixed trends as investors evaluated the global economic outlook, with US President Donald Trump pressing on with his trade war. The US market is closed today due to Presidents' Day.

Technical Outlook

* Nifty index opened negative and after the initial drop to 22725 zones, it recovered for the rest of the day. Wild swings were seen on either sides but the overall undertone remained that of support based buying. It managed to close near its day’s high with marginal gains.

* It formed a bullish candle on daily frame with longer lower shadow indicating bulls awakening at lower levels. Now if it manages to cross and hold above 23000 zones then bounce could be seen towards 23150 then 23250 zones while supports are intact at 22800 then 22725 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.21% at 23043 levels. Positive setup seen in Manappuram Finance, Ashok Leyland, Nykaa, SBI Life, Bajaj Finance, MGL, Bajaj FinServ, HDFC Bank, CIPLA and Berger Paints while weakness in PB Fintech, Supreme Industries, LTTS, AU Bank, Siemens, VBL, Birla Soft, TVS Motors, Naukri, HAL, OFSS and Colgate.

* On option front, Maximum Call OI is at 24000 then 23500 strike while Maximum Put OI is at 22000 then 22500 strike. Call writing is seen at 23500 then 23700 strike while Put writing is seen at 22700 then 22900 strike. Option data suggests a broader trading range in between 22500 to 23500 zones while an immediate range between 22800 to 23300 levels.

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