Will Nifty 50 Break 22700? Can Bank Nifty Slip Below 48,500?
Nifty 50 Break 22700 : The Indian stock market has been under significant selling pressure, with the Nifty 50 and Bank Nifty struggling at crucial support levels. The benchmark Nifty 50 index fell for four consecutive days, registering a fresh low for 2025 on February 21. Meanwhile, Bank Nifty also declined, keeping traders and investors on edge.
The big question now is whether Nifty 50 will break the 22,700 support level and whether Bank Nifty will fall below 48,500. If these levels fail to hold, further downside pressure could be triggered, taking the indices to even lower levels.
Nifty 50 Analysis: Will 22,700 Hold?
Current Market Condition
On February 21, Nifty 50 closed at 22,796, down 117 points (0.51%). The market sentiment was bearish, as seen in the advance-decline ratio, with 1,621 shares declining against 993 advancing on the NSE.
The index is currently trading below all key moving averages, with negative crossovers seen in momentum indicators. Experts suggest that 22,700 is a critical level to watch. If broken decisively, the next supports are at 22,600 and 22,400.
Key Resistance and Support Levels
- Key Resistance: 23,000, 23,150, 23,300, 23,350
- Key Support: 22,700, 22,600, 22,400
Market Strategy
Bullish View: If Nifty crosses 23,000, traders can look for buying opportunities targeting 23,300. A breakout above 23,350 could indicate a potential trend reversal.
Bearish View: A break below 22,700 may trigger further selling, leading to 22,500-22,400 levels.
Trading Strategy:
- Buy Nifty Futures above 23,000, with a stop-loss at 22,800, targeting 23,300.
- Sell Nifty Futures around 22,900, with a stop-loss at 23,000, targeting 22,600-22,500.
Bank Nifty Outlook: Will 48,500 Be Breached?
Current Market Condition
On February 21, Bank Nifty fell 353 points (0.72%) to 48,981. The index continues to trade in a sideways range, showing uncertainty. If 48,500 is broken, the selling pressure could extend towards 48,300. A more decisive break below 48,300 could even push the index to 47,800.
Key Resistance and Support Levels
- Key Resistance: 49,100, 49,300, 49,800, 49,900
- Key Support: 48,500, 48,300, 47,800
Market Strategy
Bullish View: If Bank Nifty moves above 49,200, buying interest could push it towards 49,900.
Bearish View: A fall below 48,500 could bring in heavy selling, targeting 48,300-47,800.
Trading Strategy:
- Buy Bank Nifty above 49,200, with a stop-loss at 48,800, targeting 49,900.
- Sell Bank Nifty near 49,100, with a stop-loss at 49,300, targeting 48,600-48,500.
Expert Opinions on Nifty and Bank Nifty Trends
1. Osho Krishan (Angel One) on Nifty 50
- Nifty remains under selling pressure despite a brief rebound last week.
- 22,700 is the critical level – if broken, markets could see higher volatility.
- The first resistance lies at 23,000, and a breakout above 23,150-23,350 is needed for a trend reversal.
2. Rajesh Palviya (Axis Securities) on Nifty 50
- Weekly chart shows a bearish candle, indicating selling pressure at higher levels.
- Sustaining above 23,000 could trigger a rally towards 23,500, but a break below 22,700 could extend the downside to 22,300.
- Expect rangebound movement between 22,300-23,500 this week.
3. Ameya Ranadive (StoxBox) on Nifty 50
- Nifty has strong Call writing at 23,000, making it a stiff resistance.
- Put writing at 22,000 indicates a key support level.
- The Put-Call Ratio (PCR) dropped to 0.73, favoring sellers.
4. Osho Krishan (Angel One) on Bank Nifty
- Bank Nifty is trading sideways, waiting for a clear breakout.
- Resistance remains at 49,850-49,900, while support lies at 48,800-48,700.
- A breakout in either direction will define the next major move.
5. Rajesh Palviya (Axis Securities) on Bank Nifty
- Extreme volatility has kept the index rangebound.
- A break above 49,300 could push Bank Nifty towards 50,000, but a fall below 48,750 may drive it down to 48,350-48,000.
Nifty & Bank Nifty: Key Financial Ratios
| Index | Current Value | P/E Ratio | P/B Ratio | Dividend Yield |
|---|---|---|---|---|
| Nifty 50 | 22,796 | 22.1 | 4.1 | 1.2% |
| Bank Nifty | 48,981 | 14.6 | 2.7 | 1.5% |
Conclusion: Should You Buy, Sell, or Wait?
With Nifty 50 and Bank Nifty at critical levels, the upcoming week is crucial. Market participants should watch 22,700 on Nifty and 48,500 on Bank Nifty. A decisive break below these levels could accelerate selling, while a strong rebound could lead to a relief rally.
What Should Traders Do?
Bullish traders should wait for a break above resistance levels before taking long positions. Bearish traders should watch for a breakdown below 22,700 (Nifty) and 48,500 (Bank Nifty) for fresh short trades. Wait-and-watch approach is advisable until the market gives a clear direction.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.