Trade setup for Feb 21: NIFTY50 sustains below 23,000, all eyes on weekly close

Asian markets @ 7 am

GIFT NIFTY: 22,852 (-0.24%)

Nikkei 225: 38,694 (+0.39%)

Hang Seng: 22,939 (+1.55%)

U.S. market update

Dow Jones: 44,176 (▼1.0%)

S&P 500: 6,117 (▼0.4%)

Nasdaq Composite: 19,962 (▼0.4%)

U.S. indices closed lower on Thursday as investors reacted to Walmart’s tepid sales forecast for fiscal year 2026. The retail giant’s shares tumbled over 6% after projecting sales growth of just 3% to 4%, falling short of market expectations. The weak guidance overshadowed Walmart’s stronger-than-expected fiscal fourth-quarter earnings, weighing on the broader market.

NIFTY50

February Futures: 22,942 (▼0.1%) Open interest: 2,18,557 (▼1.6%)

The NIFTY50 index extended the consolidation around the 23,000 mark for the fifth day in a row and closed the February 20th session on a flat note. This was the fourth consecutive flat close of the index as it protected the 22,700 support zone for the fifth time in last one week.

The technical structure of the index as per the weekly chart indicates a formation of a pause candle after a sharp drop of over 2% last week. Meanwhile, the broader structure of the index still remains weak with resistance around 23,400 zone. As per the daily chart, the index protected the immediate support zone of 22,700 for the fifth consecutive session. If the index slips below this zone on closing basis, then it may extend the weakness towards 22,500 zone. Conversely, immediate resistance for the index remains around the 23,300 zone.

SENSEX:

Max call OI: 76,000 Max put OI: 76,000 (20 Strikes from ATM, Expiry: 25 Feb)

The technical structure fof the SENSEX as per the weekly chart remains rangebound as the index is currently forming a doji candlestick pattern. Traders should closely monitor the weekly close of the index. A close below the crucial support zone of 75,200, will indicate weakness. On the other hand, the resistance of the index remains around 77,100 zone.

On the daily chart, the index took support in the zone of 75,200 for the fifth session in a row and protected it on the closing basis. If the index closes below this zone, then it may extend the weakness. Meanwhile, the immediate resistance for the index is around the 77,100 zone.

FII-DII activity

Stock scanner

In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with an increase in price, and short build-up means an increase in Open Interest(OI) along with a decrease in price. Source: Upstox and NSE.

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