Indian Stock Market Outlook for February 26
The Indian stock market is set to experience a positive opening on February 26, as benchmark indices like Sensex and Nifty 50 are aligned with upbeat global cues. The Gift Nifty also indicates a favorable start, trading at around 25,667, which presents a premium of nearly 39 points compared to the previous close of Nifty futures.
On the previous day, the market closed slightly higher, with Sensex gaining 50.15 points or 0.06% to finish at 82,276.07, and Nifty 50 rising by 57.85 points or 0.23% to settle at 25,482.50. However, profit booking was noted at higher levels, a signal that may lead to a cautious trading environment.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the immediate resistance for the Sensex is at 82,500. If it stays below this level, further downside towards 82,000 seems likely. Conversely, if it surpasses 82,500, it could potentially reach between 82,800 and 83,000.
Market analyst Mayank Jain highlights that the immediate support for Sensex is 82,000 - 81,800, and trading below 82,000 could prompt further corrections towards 81,200. For Nifty 50, a small red candle was formed, indicating a lack of strength in market recovery, with immediate support at 25,400 - 25,350.
The derivatives segment reveals heavy put writing at 25,500 and call writing at 25,600, suggesting a tight range-bound structure for Nifty 50. Hitesh Tailor from Choice Equity Broking advises traders to remain cautious near support zones and wait for clear breakout signals before taking positions.
The outlook for Bank Nifty also remains cautious, closing slightly lower at 61,043.35. The immediate resistance is found in the 61,400 - 61,500 range. If Bank Nifty breaks above this level, it could see further upward movement towards 62,000.
In conclusion, while the Indian stock market shows signs of positivity, traders and investors must remain vigilant and informed. Keeping an eye on key resistance and support levels is essential for making strategic trading decisions amidst the current market volatility.
