Sensex, Nifty fall over sombre global cues; markets stay indecisive amid lack of triggers

The Nifty's daily chart reveals the formation of a neutral candlestick pattern, signaling indecisiveness between bulls and bears, said analysts

Benchmark indices Sensex and Nifty 50 started February 20 trade on a negative note amid subdued global cues. After Nifty reached an all-time high of 22,186 in the previous session, analysts indicate that sustained levels above 22,150 could trigger further upward movement towards the 22,400 mark in the near future.

Sensex and Nifty declined 0.2 percent each to 72,569 and 22,069, respectively on February 20 opening deals.

"The Nifty's daily chart reveals the formation of a neutral candlestick pattern, signaling indecisiveness between bulls and bears. If Nifty sustained levels above 22,150, it could pave the way for an upward movement towards 22,400 in the short run," said Mandar Bhojane, Research Analyst at Choice Broking.

India VIX, which measures market volatility in the near-term, was up by a percent to trade above 16.

Sacchitanand Uttekar, Vice-President – Research & Data Analytics TradeBulls Securities said that unless India VIX breached the tight zone of 15-16, one cannot see any directional move in Nifty.

"The stance for the day is neutral-to-positive. If Nifty breached below 21,980, it may edge lower but if it sustained above 22,140 level, we may see Nifty reclaim 22,300-340 itself this week," he told Moneycontrol.

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Meanwhile, broader markets were mixed within the first hour of trade as Nifty Midcap 100 slipped 0.1 percent and Nifty Smallcap 100 index gained 0.2 percent.

Sectorally, Nifty Media and Realty indices gained the most - over 1 percent, whereas Nifty Auto and Pharma indices were top laggards.

Majority of markets in Asia-Pacific region traded on a subuded note this morning. Japan's Nikkei 225 index inched mildly lower, while South Korea's Kospi and Australia's S&P 200 indices gained up to 1 percent.

On the other hand, futures tied to US markets fell overnight. This move follows losing week on Wall Street after economic data raised concerns that the Federal Reserve may not begin reducing rates as market participants had expected.