nifty 50 faces critical support test

Nifty 50 prediction for tomorrow, Feb 25 (Tuesday): Bearish flag and pole pattern on chart; support, resistance levelshttps://t.co/rrQvUUJEzX

— ET NOW (@ETNOWlive) February 24, 2025

The Nifty 50 index is facing a critical juncture as it moves closer to the 22,700 level during the week. If the index decisively breaks this immediate support, the fall may extend down to 22,600, which is the trendline support. Experts warn that a steep correction cannot be ruled out if the index falls below this level.

Nifty 50 Crash: Index on verge of breaking 28-year-old record – Will Bulls roar to maul bears?https://t.co/ccLXlrcoQ7

— ET NOW (@ETNOWlive) February 24, 2025

The sentiment has weakened further on Friday, with the Nifty 50 hitting a new low for the current year, 2025, on February 21. The index closed half a percent lower, extending its downtrend for the fourth consecutive session. However, if the index rebounds in the near term, the 23,000–23,100 range may act as a key hurdle. Sustaining above 23,200 could signal the beginning of a new uptrend.

After a nearly five-month correction, the BSE Sensex and the NSE Nifty are set to record their longest monthly losing streak since 1996.#Nifty50 #Sensex #BusinessNews #Investments https://t.co/vG1zkqEK76

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The Nifty 50 formed a bearish candle with shadows on both ends, resembling a high-wave candlestick pattern on the daily charts. This indicates volatility in the market.

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nifty 50 movement signals caution

The index sustained below all key moving averages, signaling weakness with a negative crossover in momentum indicators such as MACD and RSI. The Bank Nifty also exhibited a similar pattern on the daily charts, moving closer to the lower end of the Bollinger Bands. The index sustained below all key moving averages with a negative bias in momentum indicators, suggesting bearish control. Options data suggests that the 23,000 strike, with 1.04 crore contracts, can act as a key resistance level, followed by the 23,500 and 23,100 strikes. The 22,000 strike, with 92.89 lakh contracts, can act as key support, followed by 22,500 and 22,300 strikes. The Put-Call Ratio (PCR) fell to 0.82 on February 21, down from 0.9 in the previous session, indicating a bearish sentiment. The India VIX extended its downtrend to the 14.53 zone and needs to sustain below the 14 mark for the bulls to regain strength. Investors are advised to remain cautious and avoid making hasty decisions in this volatile period. Staying informed and potentially reallocating investments to more stable options or emerging opportunities might be prudent strategies. Consulting certified experts before making investment decisions is recommended. Image Credits: Photo by George Morina on Pexels