Trade Setup February 17: Technical break above 25,750 needed for rally extension

The benchmark Nifty 50 staged a sharp rebound on Monday, snapping a two-day corrective phase as buyers returned in force. After opening 48 points lower, the index rallied over 300 points from the intraday low to close 211 points higher at 25,682, signalling improving sentiment and opening the door for a potential move towards the 25,800–26,000 zone.

Market Performance Snapshot

The Nifty showed resilience despite a weak start, with no follow-through selling seen in early trade. Strong buying interest helped the index finish near the day’s high, reinforcing short-term bullish momentum.

Closing level: 25,682 (+211 points)

Intraday recovery: Over 300 points from the day’s low

Market tone: Broad-based rebound

Power Grid, Coal India and HDFC Bank led the gains, while Tech Mahindra, Bajaj Finance and Maruti Suzuki were among the top laggards.

Sectoral & Broader Market Trends

The rally was largely broad-based. All sectoral indices closed in the green except Nifty Media and Auto.

Top performers: Realty, PSU Banks, Bank Nifty

Midcaps: Nifty Midcap 100 rose 0.48%

Smallcaps: Nifty Smallcap 100 gained 0.11%

With the Q3 earnings season mostly behind, corporate results have broadly met expectations, providing stability to the market backdrop.

Technical View and Key Levels

According to Nilesh Jain, the index rebounded strongly after testing the 25,400 zone and managed to close above its 21-day moving average (25,480). However, the 100-DMA at 25,690 now acts as immediate resistance.

Key levels to watch:

Support: 25,500 / 25,550

Resistance: 25,750 → 25,800

Nagaraj Shetti said a sustained move above 25,750 could lift the index towards 26,000 in the near term.

Meanwhile, Rupak De noted that holding above 25,600 on a closing basis is crucial for extending the uptrend.

Nandish Shah added that reclaiming levels above the 20- and 50-day EMAs strengthens the bullish setup, with 25,372 now acting as fresh support.

Outlook for February 17

The sharp rebound suggests bulls are regaining control, though a decisive breakout above 25,750–25,800 is needed to confirm further upside. Failure to hold 25,500 could reintroduce volatility.