India's Stock Market Outlook: Nifty 50 and Sensex Performance for February 25 Trade

Indian Stock Market Update

Market Outlook

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, tracking upbeat global market cues. The Gift Nifty is trading around 25,669, a premium of nearly 69 points from the Nifty futures' previous close.

Previous Trading Session

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On Tuesday, the Indian stock market ended sharply lower, weighed down by selling across the board. The Sensex crashed 1,068.74 points, or 1.28%, to close at 82,225.92, while the Nifty 50 settled 288.35 points, or 1.12%, lower at 25,424.65.

Technical Analysis

Sensex: The index formed a long bearish candle on the daily charts and a lower top formation in intraday charts, indicating further weakness from the current levels. A fresh selloff is possible only after the Sensex breaches the 200-day Simple Moving Average (SMA) or 82,000.

Nifty 50: The index formed a bearish candle on the daily chart and slipped below its 21-DMA placed at 25,585 levels. A long bear candle was formed on the daily chart with minor lower shadow, indicating a sharp weakness in the market after a lower top formation.

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Bank Nifty: The index ended 216.95 points, or 0.35%, lower at 61,047.30 on Tuesday, forming a small-bodied bearish candle with a lower shadow on the daily chart, suggesting buying support at lower levels.

Trading Range

The Nifty 50 is trading within the range of 25,200 – 25,800, which is acting as immediate support and resistance respectively. A breach below Tuesday's low of 25,327 will open further downside towards the 200-day EMA and the previous gap area placed around 25,100 – 25,200.

Resistance and Support Levels

Sensex: Immediate resistance is placed at 82,500 – 82,800, while the 200-day SMA or 82,000 is a key support level.

Nifty 50: Immediate resistance is placed at 25,600, while 25,300 is emerging as an immediate support base for the current expiry cycle.

Bank Nifty: Immediate resistance is placed in the 61,400 – 61,500 zone, while the zone of 60,800 – 60,700 is likely to act as an immediate support.