The Nifty 50 index closed flat with a slight negative bias after rangebound trading on February 25. Despite a six-day downward trend, the index stayed above the 22,500 zone. The formation of an Inverted Hammer candlestick pattern on the daily charts, along with a sharp fall in India VIX below 14, suggests a potential rebound in the upcoming sessions.
The Nifty 50 opened lower at 22,516 and traded within the range of 22,625 and 22,514 during the day. It finished at 22,548, down 6 points, forming a small bullish candle with a long upper shadow, resembling an Inverted Hammer. This pattern, along with the momentum indicator RSI in the oversold zone, signals a high chance of an upside bounce.
Experts believe that the index may face resistance at 22,700-22,800, with immediate support at 22,500 and key support at 22,400. The monthly options data indicates that the Nifty 50 is likely to see support at 22,500 in the upcoming monthly F&O expiry session on February 27.
