Trade Setup for February 18: Nifty eyes 26,000 as bulls defend key 25,600 support

After a shaky start on weekly expiry day, the Nifty staged a sharp intraday rebound, rising over 150 points from day’s lows and closing higher for the second straight session, keeping hopes of a move toward 26,000 alive.

The benchmark Nifty index extended its winning streak for a second consecutive session on Tuesday, closing 43 points higher at 25,725 amid range-bound but volatile trade. The index recovered strongly after a weak opening, rallying more than 150 points from its intraday lows, as bulls stepped in to defend the crucial 25,600 support zone.

Despite the recovery, the index failed to decisively break above the 25,750 resistance area, indicating caution at higher levels. Adani Enterprises, ITC and Bharat Electronics emerged as top gainers, while Hindalco, Tata Steel and Eternal ended the session lower.

Market breadth remained positive, with most sectoral indices closing in the green. PSU Banks led the rally with a gain of over 2%, followed by IT and FMCG stocks. In contrast, Metal, Realty, and Oil & Gas indices underperformed due to continued selling pressure.

Broader markets outpaced frontline indices, with the Nifty Midcap 100 rising 0.27% and the Smallcap index gaining 0.56%.

IT stocks extended their rebound for a second session after recent corrections, supported by improved sentiment following Infosys’ strategic partnership with Anthropic. Defence stocks also gained ahead of the anticipated meeting between French President Emmanuel Macron and Prime Minister Narendra Modi, raising expectations of further defence-related announcements.

On the downside, metal stocks remained under pressure amid weakness in global precious metal prices.

Market experts remain cautiously optimistic. Analysts noted that the Nifty has filled the gap between 25,630 and 25,752 formed on February 13. A sustained move above the 25,750–25,800 zone could trigger fresh buying and open the path toward 26,000 and potentially 26,350. On the downside, immediate support is seen at 25,600, followed by 25,570 and 25,372.

Easing volatility and supportive global cues could further strengthen bullish sentiment in the near term, experts said.