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Below the Quote on Pre-Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking

Indian equity markets are expected to open on a flat to bearish note today, as indicated by GIFT Nifty, which was trading around 22,992 in early trades, reflecting a modest decline of 33 points. This suggests subdued market sentiment, influenced by global cues and the absence of strong domestic triggers. Investors will closely monitor global trends, crude oil prices, and institutional flows to assess the market’s further direction.

The Nifty opened with a 62-point gap down but staged a strong recovery from the day’s low of 22,725.45, forming higher lows on the daily chart. The price action resulted in a bullish piercing pattern with significant volume, indicating a potential reversal. Immediate support is placed at 22,800, and if the index fails to sustain above this level, further downside toward 22,600 and 22,400 is possible. On the upside, key resistance levels are at 23,000 and 23,200, with a strong close above 23,200 signaling a bullish breakout.

Similarly, Bank Nifty experienced significant volatility, initially declining by nearly 560 points before rebounding sharply by 795 points, forming a bullish candlestick in the previous session. While this pattern indicates a potential reversal, confirmation is required to establish a clear trend. A sustained move below the critical level of 49,000 could lead to further downside, with immediate support at 48,850 and 48,500. Conversely, a reversal from these levels may present buying opportunities. On the upside, resistance is seen at 49,350, and a decisive close above this level could trigger a rally toward 49,652.

On the institutional front, foreign institutional investors (FIIs) continued their selling streak for the eighth consecutive session, offloading equities worth Rs.3,937.8 crore on February 17. In contrast, domestic institutional investors (DIIs) remained net buyers, purchasing equities worth Rs.4,759.8 crore  on the same day. Given the prevailing market dynamics, traders are advised to exercise caution and wait for confirmation of price action at critical levels before initiating fresh positions.

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