Trade Setup for Feb 27: Nifty holds 25,350 support, 25,660 seen as key upside trigger

The Nifty 50 has found firm support near 25,350–25,380 amid elevated volatility, with analysts flagging 25,630–25,660 as the immediate resistance zone that will decide the next move.

Indian equity markets remain range-bound as volatility persists amid mixed global cues. According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the Nifty 50 has established crucial support in the 25,380–25,350 zone after recent choppy sessions.

Looking ahead, Shah said the 50-day extended moving average band of 25,630–25,660 will act as an immediate hurdle for the index. A sustained move above 25,660 could open the door for a sharp rally toward the 25,800 level. On the downside, a break below 25,350 could weaken the short-term structure.

Technical commentary from Bajaj Broking noted that the Nifty has formed a small bearish candle with a modest lower shadow, signaling ongoing consolidation and stock-specific action. The brokerage added that immediate resistance is placed near 25,650, and only a decisive move above this level would indicate a pause in the current corrective trend. Volatility, it warned, is likely to stay elevated due to uncertain global developments.

Bank Nifty Outlook

For the Bank Nifty, Shah highlighted strong support in the 60,800–60,700 range. Holding above this zone would help maintain a positive undertone and prevent a deeper correction. On the upside, resistance is seen between 61,400 and 61,500, an area that has previously capped gains.

Bajaj Broking added that Bank Nifty formed a high-wave candle, reflecting consolidation and indecision. In the near term, the index is expected to trade within a broad 60,000–61,750 range, with a decisive breakout likely to set the next directional trend.

Market Recap

Benchmark indices oscillated between gains and losses through Thursday’s session as weakness in financial stocks offset continued recovery in IT shares. Early momentum, aided by the return of foreign fund inflows on Wednesday, faded by midday.

At the close, the Nifty 50 ended 14 points higher at 25,496.55, while the BSE Sensex slipped 27 points to 82,248.61. Heavyweight banking stocks, led by HDFC Bank, exerted the most pressure on the indices.