Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 22

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Sensex dropped 434.31 points to close at 72,623.09, while the Nifty 50 settled 141.90 points, or 0.64%, lower at 22,055.05. Nifty formed a long bear candle on the daily chart that has engulfed the positive candle of previous session. “Technically, this pattern signals a formation of bearish engulfing at the highs.

Normally, such formation after a reasonable up move indicates a short term top reversal pattern for the market. The bullish chart pattern like higher tops and bottoms continued as per daily timeframe chart and Wednesday’s swing high of 22,249 could now be considered as a new higher top of the sequence," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities. Also Read: Indian stock market: 10 key things that changed for market overnight - Gift Nifty, US Fed minutes to Nvidia results Hence, according to Shetti, short term weakness could be expected in the market.

Here’s what to expect from Nifty 50 and Bank Nifty today: Upon scrutinizing the Nifty Open Interest (OI) data, the call side revealed the highest OI at 22,200, followed by the 22,300 strike prices. On the put side, the maximum OI was observed at the 21,800 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking. Nifty 50 halted a 6-day winning run and ended lower on February 21 after making a fresh record high of 22,249.

“The Nifty has formed a bearish engulfing pattern on the daily chart, indicating a potential pause in the ongoing rally. The momentum indicator RSI is showing a bearish crossover, signaling weakness in the near term. Immediate support is positioned at 22,000; a decisive drop below this level could lead the index towards 21,700," said Rupak De, Senior Technical Analyst, LKP Securities.