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Global cues would dictate the Nifty trend!

ICICIdirect Research 27 Feb 2026 DISCLAIMER

Equity benchmark extended breather over third consecutive week while navigating through geopolitical as well as global uncertainties amid AI disruption. Nifty lost 1% to settle the week at 25180. Meanwhile, the broader markets have shown remarkable resilience as Nifty midcap, small cap held their ground and settled on a flat note. Sectorally, Metal, Pharma remained in limelight while IT, realty continued to be under pressure.
What to expect: In the upcoming truncated week, we expect prolongation of consolidation in the broader range of 25800-25000 while sailing through global volatility amid geopolitical jitters.
The silver lining: The index took three weeks to retraced 61.8% of sharp up move (24600-26300) seen during early past of Feb on the backdrop of US-India trade deal. This healthy consolidation has helped the index to form a higher base that has set the stage for next leg of up move.
Past three week’s consolidation has been captured in a well-defined downward slanting channel. Thereby a decisive close above upper band of this channel (placed at 25800) would confirm change in trend and open the door for 26300 in the coming month
FII biased has changed for better except IT, Feb month has witnessed a buying in excess of 22000 crores despite intense selling in IT stocks
In tandem with the benchmark move, Nifty midcap, smallcap indices underwent healthy consolidation after bouncing back from their key support zone. The current up move is backed by the improvement in the market breadth that bodes well for broadening of rally going ahead.
 
Key monitorable:
Brent crude would be the key monitorable going forward amidst renewed geopolitical tension, that pulled it around falling resistance trendline placed at $72 range. A decisive close above $72 would fuel the momentum for next leg of up move that can add pressure on emerging markets like India
Monthly Auto sales data
 
 

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