Nifty Momentum Revives as Seller Fatigue Entices Bulls for Risk-on

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Prices opened near the crucial 20 EMA on Monday, where buyers stepped in, said Angel One

By S. JHA

Mumbai, February 17, 2026 — Technical charts for long have stayed as a lamppost for traders in the stock markets. They again asserted their relevance as Nifty bounced back from deep support around 25500 level. The bounce brought frenzy to buy stocks, and that unleashed a short-covering.

When bears cover their shorts in the markets, bulls come marching with full strength to the Dalal Street. The Monday session in the markets brought bulls all guns blazing. While fear spoke of Nifty staring at abyss, the turnaround now brings the 50-share index to reclaim new highs.

“Nifty printed a classic bullish engulfing candle after defending the crucial 25,400 to 25,450 support zone, effectively absorbing recent selling pressure and shifting short term momentum,” said Angel One in a market note to clients.

The brokerage firm stated that “the 200 plus point rise in Nifty Futures was driven by aggressive short covering at the lows, indicating seller fatigue and trapped bearish positions.” “PSU Banks, Energy, and Realty led the advance, while Bank Nifty reclaiming the 60,000 mark reflects improving breadth and risk appetite,” added Angel One.

It also stated that a “decisive daily close above the 25,800 to 25,850 resistance zone is required to validate a structural trend reversal and sustain upside momentum.” “On Friday, a bearish gap was formed near 25750, resembling a ‘Bearish Island Reversal’ pattern. This level remains crucial in the coming sessions,” added the brokerage firm.

It also argued that a “sustained move above it could confirm a higher bottom formation and open the path toward 25850–26000, and eventually fresh highs.”

On technical outlook option chain, Angel One stated that “for the upcoming weekly expiry series, significant writing was observed in 25700-25900 Put strikes, hinting at nearby resistance zone. On the flip side, 25500 followed by 25600 put strikes has decent pile-up of positions, suggesting immediate support zone.”

“Prices opened near the crucial 20 EMA on Monday, where buyers stepped in and successfully launched not just a recovery of the initial morning losses, but also retraced the entire decline from last week,” added the brokerage firm.

(Disclaimer: This article recommends no trading in the stock markets.)