Today’s stock market: Sensex and Nifty 50 maintain their positions above important supports. Are bears on the verge of extinction?

Today’s stock market: Despite recent declines on Dalal Street, the Nifty 50 index has maintained above its critical 22,750 to 22,800 support.

 

Today’s stock market: On Wednesday, the Indian stock market saw some early morning purchasing after nine consecutive sessions of lackluster activity. After starting the day lower at 22,847, the Nifty 50 index quickly gained strength and reached an intraday high of 23,049. The 50-stock index went green and reclaimed the psychological 23,000 level as it rose to its peak this Wednesday. The 30-stock index quickly turned green and reached an intraday high of 76,338 after the BSE Sensex opened marginally lower.At 48,895, the Nifty Bank index opened weakly as well. But the bulls took notice of the frontline index, which at the Opening Bell reached an intraday high of 49,628.

Frontline indices are holding above their respective critical supports, according to stock market analysts. Every time the 50-stock index tested this critical level, bulls started purchasing, and the Nifty 50 index has held above the 22,750 to 22,800 support despite Dalal Street’s poor trends over the past nine sessions.Additionally, the BSE Sensex held above the 74,800 support level. According to them, if buying occurs across segments and indexes, a further rebound in the frontline indices might herald the start or finish of the Indian bear market. Once the BSE Sensex closes above 76,600 and the Nifty 50 index closes above 23,050, they claimed, the participative surge might improve the market tilt.

 

Bottom-out forecast for the stock market :
“Bulls are accumulating at lower levels, and we are witnessing the Nifty 50 and Sensex rebound from their current crucial support at 22,750 to 22,800 and 74,800, respectively,” Mahesh M. Ojha, AVP — Research at Hensex Securities, spoke on whether the Indian stock market is bottoming out. Between 76,550 and 76,600, or 23,050 in Nifty 50 values, the BSE Sensex is encountering a barrier.

 

Also Read : The Sensex and Nifty have a rocky start; mid- and small-cap stocks are down up to 1%, while financial, oil, and gas equities are down.

Dalal Street’s mood might improve once these frontline indices decisively break over this obstacle, according to the Hensex Securities specialist. It won’t, however, be sufficient to prove that the Indian market has collapsed. Until the BSE Sensex surpasses 77,400 and the Nifty 50 index makes a new breakout at 23,800, this rise will continue to be a relief rally.

 

Focus on the US Fed rate decrease :
“Investors’ attention now shifts to the FOMC minutes set for release on Thursday, February 20,” stated Siddhartha Khemka, Head of Research — Wealth Management at Motilal Oswal, pointing to the FOMC meeting that is set for this Thursday. Expectations of a US Fed rate drop in 2025 could be jeopardized by a hawkish Fed approach, which could lead to additional foreign outflows from Indian markets.

“Technically, not much has changed, but consistent buying at lower levels over the past two sessions bodes well for the bulls,” said Rajesh Bhosale, Technical Analyst at Angel One, urging investors to continue to be alert about the sustained buying. Additionally, following the recent decline, selective stock participation helps to stabilize sentiment.

Despite these encouraging signs, the Angel One analyst stated that bulls are ambiguous. The sustainability of follow-up purchases is an important consideration. Last Thursday’s high of about 23200, which is in line with the 20-DEMA, provides immediate resistance. The upper limit of the Falling Wedge, a crucial barrier, is located above 23400.