Trade Setup for February 19: The Put-Call Ratio rose to 1.22 signalling a bullish undertone

Markets enter February 19 with a bullish bias as the Nifty sustains above 25,750, volatility eases, and momentum indicators strengthen, pointing toward a potential move to 26,000.

Indian equities head into the February 19 trading session with optimism, supported by a steady uptrend in the benchmark indices, easing volatility, and improving technical indicators. The Nifty 50 extended gains for a third consecutive session on February 18, rising 0.4 percent and marking a strong start to the monthly F&O expiry week.

The index maintained its higher high–higher low formation, broke decisively above a downward-sloping resistance trendline, and benefited from a continued decline in the India VIX. Market experts believe these signals reflect growing confidence among bulls. As long as the Nifty holds above 25,750, a move toward the psychological 26,000 level appears likely in the near term.

On the downside, immediate support is placed at 25,650, aligned with the 20-day exponential moving average, while 25,500 remains a crucial support zone.

Technically, the Nifty formed a bullish candle with a long lower shadow, indicating buying interest at lower levels. The index closed above key short- and medium-term moving averages, with momentum indicators strengthening. The Relative Strength Index climbed to 53.91, while the MACD remained above the signal line with a rising histogram, reinforcing the positive outlook.

The Bank Nifty also displayed strength, forming a bullish candle and closing at a fresh high. It remained above all major moving averages, with the RSI near 65 and momentum indicators suggesting sustained upside. Resistance for the Bank Nifty is seen near 62,000, while support lies around the 61,000 mark.

In the derivatives segment, options data showed significant call open interest at the 26,000 strike for the Nifty, indicating resistance at that level. On the put side, heavy open interest at the 25,500 and 25,700 strikes suggests strong support. The Put-Call Ratio rose to 1.22, its highest since early January, signalling a bullish undertone.

Market sentiment was further aided by a steady decline in India VIX, which fell to 12.22, remaining below key moving averages and indicating reduced fear among traders.

Overall, analysts expect the positive bias to continue, provided key support levels hold. A sustained breakout above resistance zones could trigger fresh buying, while easing volatility may further strengthen bullish sentiment.