Technical analysis is a mechanism to identify trading opportunities in the stock market by evaluating statistical data. The statistical data comprises price movement, trading volume, moving average, historical data, charts, breakouts, correct buy points, proper buy zones. This strategy is based on the assumption that the past trading activity of a stock can be an indicator of its future price movements when analysed with suitable rules of trading. This method analyses the ways supply and demand for a stock may drive changes in price, volume, and implied volatility. First time investors often get confused between fundamental and technical analysis. While both methods are used to research and forecast future movement in stock prices, both are different in nature. Like the name suggests, fundamental analysis evaluates a stock on its inherent value i.e. fundamentals. This method involves evaluating a company’s financial statements to estimate the fair value of the business. On the other hand, technical analysis is based on statistical trends and assumes that the stock price has already factored-in all publicly available information. More
If the Nifty 50 fails to defend the previous day's low (around 25,600), a fall toward 25,500–25,400 can be seen. However, on the higher side, 25,800 is crucial for a further uptrend toward 26,000.
The market may consolidate after two days of gains, as the VIX signals caution for bulls. Below are some short-term trading ideas to consider.
The immediate key hurdle for Nifty 50 is placed at 25,800. Surpassing and sustaining this level could prepare the index for a move toward the 25,900–26,000 zone, which may open the door to a record high. Until then, range-bound trading may continue.
The monthly options data suggest that the Nifty may remain in the 25,500–26,000 range in the short term, as a decisive close on either side of the range can provide firm direction to the Nifty 50.
After the initial gap-up opening on Monday, a short-term dip cannot be ruled out. Any decline toward the 25,750–25,780 zone could present a buying opportunity for a near-term target of 26,002, Ashish Kyal advised. Among stocks, he believes Granules India appears strong from a short-term perspective, having delivered a decisive breakout from a triangle pattern in the previous session. KEI Industries has also witnessed a strong breakout from a multi-resistance zone around Rs 4,600, supported by healthy volumes in the prior trading session, he said in an interview to Moneycontrol.
Bulls are likely to gain more strength on Monday, especially after the Supreme Court ruled against Trump’s tariffs. Hence, the Nifty 50 is expected to march toward 25,900, which is the pivot point, as only sustaining above it can take the index toward the next key resistance at 26,000.
The market is expected to maintain its uptrend if it sustains above the midline of the Bollinger Bands. Below are some short-term trading ideas to consider.
As long as the index holds above this level, along with the positive signal from the US Supreme Court striking down Trump’s tariffs with a 6–3 vote—though Trump later announced an increase in global tariffs to 15 percent from 10 percent—a possible move toward the 25,900–26,000 levels (which also coincide with recent swing highs) may occur in the upcoming sessions.
On the upside, the 25,950–26,000 band stands as an immediate resistance zone. How the index reacts around these key levels will determine the next meaningful directional move, said Sudeep Shah.
Theta decay is the silent killer of option buyers. It's the daily erosion of option premium, and it doesn't move at a steady pace.
The benchmark Nifty 50 needs to surpass and sustain above the 25,650–25,700 zone for a further upward journey toward 25,800, followed by 25,900.
If the Nifty 50 fails to defend the 25,400–25,350 zone, the 25,300–25,200 range cannot be ruled out in the next few sessions. However, holding above this zone could possibly take the index toward the 25,500–25,600 range.
The market is expected to consolidate with a negative bias. Below are some short-term trading ideas to consider.
If the Nifty 50 decisively breaks 25,400 in the upcoming sessions, a fall toward the 25,300–25,200 zone cannot be ruled out. However, holding above 25,400 could take the index toward the 25,500–25,600 zone.
Technically, the day’s market action indicates the formation of a ‘Bearish Engulfing’ pattern and a faster retracement of the previous three sessions’ range on the downside within a single session. This is not a good sign for the Nifty.
If the Nifty 50 sustains above 25,800, a further upmove toward 25,900–26,000 can be seen in the upcoming sessions. However, below this level, the index may consolidate with range-bound trading, with 25,650 acting as support.
The market needs to sustain above the downward-sloping trendline for a further upmove. Below are some short-term trading ideas to consider.
The continuation of the higher high–higher low formation, falling VIX, decisive breakout of the downward-sloping resistance trendline, and improving momentum indicators signalled a positive mood in the market.
The India VIX, which measures expected market volatility, cooled down further to 12.22, down 3.55 percent, signalling comfort for bulls. A decisive fall below the 12 zone can bring major comfort for bulls.
The Nifty 50 needs to surpass and sustain above the 25,750–25,800 zone for a move toward the 25,900–26,000 levels; however, the immediate key support is placed at 25,600.
The market may remain in positive territory amid volatility. Below are some short-term trading ideas to consider.
If Nifty 50 manages to close and sustain above 25,750, a rally toward the 25,900–26,000 levels cannot be ruled out in the upcoming sessions. However, 25,600 is expected to act as immediate support, followed by 25,500 as a crucial support level, according to experts.
The Bank Nifty continued to outperform, ending near the 61,200 mark with a gain of 0.37 percent, added Shah.
The Nifty 50 may see consolidation as long as it trades below 25,750, with support placed at 25,600–25,500. Climbing and sustaining above 25,750 could open the door for a sharp rally.
The market may see consolidation until it closes above the bearish gap of February 13. Below are some short-term trading ideas to consider.