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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 22,959 in early trades, reflecting a modest decline of 13 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 gauge the market’s further direction.

In the previous session, the Nifty experienced a sharp decline of 156 points but staged a strong recovery from the day's low of 190 points, forming a hammer candlestick pattern on the daily chart. This pattern suggests potential reversal signals, though confirmation is needed. Immediate support is placed at 22,850, and if the index fails to sustain above this level, further downside toward 22,775 and 22,530 is possible. On the upside, key resistance levels are at 23,100 and 23,260, with a decisive close above 23,350 signaling a potential bullish breakout.

Similarly, Bank Nifty witnessed significant volatility, initially declining by nearly 430 points before rebounding sharply by 500 points, also forming a hammer candlestick pattern. While this indicates a possible reversal, confirmation is essential for a clearer trend. A sustained move below the critical support 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 observed at 49,350, and a decisive close above this level could trigger a rally toward 49,652.

On the institutional front, after being net sellers for the past nine sessions, Foreign Institutional Investors (FIIs) turned buyers, purchasing equities worth Rs.4,786 crores on February 18. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying streak for the 10th consecutive session, acquiring equities worth Rs.3,072 crores 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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