Is Dalal Street nearing its bottom? Key Nifty 50 and Sensex levels to watch

The Indian stock market continued its downward trend on Tuesday, February 18, 2025, following a slight pullback on Monday. The Nifty 50 saw a rebound of 137 points during the day, ultimately closing at 22,945, down by 0.06% from the previous close. Similarly, the Sensex recovered 491 points from its intraday low, ending with a marginal gain of 0.04% at 75,967.

Market sentiment remained cautious, driven by concerns over weak corporate earnings, continued foreign outflows, and uncertainties in global trade. Meanwhile, small-cap and mid-cap stocks faced declines due to valuation worries.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, pointed out that the Nifty formed a hammer candlestick pattern near a significant support zone, suggesting strength. He indicated that as long as the index holds its recent low of 22,725, a buy-on-dips strategy remains favorable. However, for a confirmed reversal of the downtrend, Nifty must surpass the 21-Day Simple Moving Average (DSMA) of 23,240.

Key Nifty 50 and Sensex Levels to Watch:

Mahesh M Ojha, AVP of Research at Hensex Securities, highlighted that bulls are buying at lower levels, with the Nifty 50 and Sensex rebounding from critical support zones of 22,750-22,800 and 74,800, respectively. The Sensex faces resistance around 76,550 to 76,600, which corresponds to 23,050 for the Nifty. A decisive break above these levels could signal an improvement in sentiment, but it would only be considered a relief rally unless the Sensex breaks 77,400 and the Nifty hits a new high at 23,800.

Sumeet Bagadia, Executive Director at Choice Broking, shared that the Nifty has established strong support at 22,800. If this level holds, the Nifty could test 23,300, and a breakout above 23,800 could lead the index to target 24,800 or 25,000 in the short term.

Given the current market conditions, investors are advised to focus on stock-specific opportunities and consult certified experts to assess individual risk tolerance before making any decisions.

Disclaimer: The views and recommendations presented are those of individual analysts or brokerage firms. Investors should conduct their own research and consult certified experts, as market conditions and individual circumstances may vary.