By Somnath Das | www.markshala.com
Table of Contents
Market Overview: How the Indian Market Performed on Tuesday
The Indian equity market experienced a volatile yet constructive trading session on Tuesday, 17 February 2026. Weak global cues initially weighed on sentiment, leading to a soft opening for domestic indices. However, the market demonstrated resilience, gradually recovering through the session and eventually closing in positive territory.
Nifty Spot ended the day with a gain of 42 points over the previous close, signaling a return of positive momentum. Technically, this was an important session as the index managed to close above all its key daily exponential moving averages, reinforcing the possibility of continued bullish bias in the near term. The daily candle structure also formed a higher high and a higher low, which is generally considered a healthy sign for trend continuation.
Another encouraging development was the improvement in overall market breadth. A total of 1,820 stocks closed in positive territory, while 1,092 stocks ended in the red. This broader participation highlights strengthening sentiment across sectors and indicates that buying interest is not restricted to just a few heavyweight stocks.
Market Sentiment and Technical Structure
Although global markets provided weak handover in the morning, Indian equities showed resilience and recovered swiftly. The ability of Nifty to reclaim key technical levels and sustain above them indicates strengthening market sentiment.
The fact that the index closed above all major daily exponential moving averages is particularly significant, as it confirms the return of bullish momentum after recent consolidation. Additionally, the formation of a higher high and higher low suggests continuation of the prevailing uptrend rather than exhaustion. Improving market breadth further supports this bullish narrative. Broader participation is often a sign of healthy market conditions, reducing the risk of sudden reversals driven by narrow leadership.
Nifty Future Intraday Performance: Price Action and Technical Analysis
Nifty Future witnessed a wide intraday movement, recording a total trading range of 194 points. Such range expansion reflects rising participation and active engagement from both buyers and sellers, making the session highly favorable for disciplined intraday traders.
As per our predefined technical setup, the early part of the session remained range-bound. This offered a short-selling opportunity near the resistance zone of 25,743. The resistance proved to be extremely strong, and within the first 20 minutes, the price corrected sharply by nearly 91 points. Traders who relied on price action combined with trend and moving average indicators could efficiently capture this move and book profits.
Two possible outcomes were observed in this trade. Traders who attempted to chase a full 100-point target purely based on plain chart levels may have faced difficulty as volatility increased, potentially resulting in profit erosion or stop-loss hits. However, traders who closely tracked intraday indicators and momentum signals were able to manage the position effectively and book profits at favorable levels.
Around midday, Nifty Future attempted an upward range breakout, triggering a long setup. However, sustained resistance from higher levels led to prolonged consolidation, resulting in a stop-loss hit for the long trade. Despite this, the overall market structure remained neutral to positive, with price action reflecting steady accumulation rather than aggressive selling. From a broader perspective, the session remained constructive for traders who followed disciplined strategies and respected intraday signals. The wide trading range of 194 points clearly reflected a trending environment suitable for technical traders.
Stock of the Day Performance: ICICI Lombard
ICICI Lombard, selected as the Stock of the Day for Tuesday, delivered encouraging performance in line with expectations. The stock provided a buying opportunity near the opening range between 1,916 and 1,922. Buying interest remained strong throughout the session, allowing the stock to touch a high of 1,937 before settling at 1,928. This trade remains positional and active. To protect profits and reduce downside risk, the stop-loss has been trailed to 1,908. This adjustment has improved the overall risk-reward profile to approximately 1:3, allowing traders to hold the position with greater confidence. From a technical standpoint, the stock continues to display healthy momentum and favorable structure, indicating the possibility of further upside in the coming sessions.
Nifty Future Trading Strategy for Wednesday, 18 February 2026
Based on current technical structure, momentum indicators, and price action behavior, Nifty Future is expected to trade within a defined range in the early part of the session. The projected intraday range for Wednesday stands between 25,777 and 25,643.
If the market remains range-bound, traders may consider initiating short positions near the upper band of 25,777 and long positions near the lower band of 25,643. In both scenarios, a disciplined stop-loss of 50 points and a target of 100 points may be maintained to ensure favorable risk-reward balance.
In case of a bullish breakout, if Nifty Future manages to sustain convincingly above 25,777, a fresh long trade may be considered. In such a scenario, immediate resistance levels are expected near 25,852, followed by 26,050. A stop-loss of 50 points and a minimum target of 100 points would remain appropriate.
On the downside, if Nifty Future breaks below 25,643 with convincing price action, a short trade setup may emerge. In this case, immediate support is expected near 25,430, followed by 25,299. Traders should strictly adhere to predefined stop-loss levels to manage risk effectively.
Importance of Trading Discipline
One of the most critical aspects of successful trading is discipline. Traders are advised to limit the number of trades to a maximum of two per session, ideally a combination of one range-based trade and one momentum-based trade. If the first trade itself achieves its intended target, it is prudent to avoid initiating further positions for the day. This disciplined approach helps protect capital, reduces emotional stress, and improves long-term consistency.
Stock of the Day for Wednesday, 18 February 2026: Dabur India
For the upcoming session, Dabur India has been selected as the Stock of the Day based on its favorable technical structure and improving momentum. The stock appears well-positioned for further upside.
Traders may consider buying Dabur near the current market price of around 517. A stop-loss may be placed at 509 to manage downside risk. The first target is projected near 532. The current setup offers a healthy risk-reward ratio of approximately 1:2, with potential for extended gains beyond the first target, subject to market conditions.
Key Global and Geopolitical Developments from the Last 24 Hours
Global developments continue to influence market sentiment and risk perception. Over the past 24 hours, several important geopolitical and economic events have emerged.
Russia carried out a large-scale drone and missile attack on Ukraine, targeting critical energy infrastructure just hours before scheduled peace negotiations in Geneva involving the United States, Russia, and Ukraine. This escalation has raised concerns regarding energy security, global risk sentiment, and volatility in European markets.
Meanwhile, high-level indirect nuclear talks between the United States and Iran commenced in Geneva. These discussions have significant implications for global crude oil supply, Middle East stability, and inflation expectations. Any positive development may influence energy markets and broader global equities.
On the domestic front, India’s trade deficit widened sharply to $34.68 billion in January, driven primarily by increased gold imports. This development could impact rupee stability, bond yields, and the Reserve Bank of India’s monetary policy outlook.
Global equity markets remained cautious amid ongoing geopolitical tensions, fluctuating commodity prices, and uncertainty surrounding technological sector valuations. European markets also remained largely range-bound, reflecting investor caution in the face of geopolitical and diplomatic uncertainties.
Final Market Outlook
The broader technical structure of the Indian market continues to favor bullish continuation, supported by improving breadth, strong price action, and positive closing patterns. However, ongoing geopolitical developments and global macroeconomic uncertainties warrant cautious optimism.
Traders are advised to remain disciplined, respect stop-loss levels, and avoid overtrading, especially in volatile market conditions.
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Disclaimer
The views and analysis provided above are for educational and informational purposes only and should not be considered as financial or investment advice. Trading and investing in the stock market involve risk, and past performance does not guarantee future results.
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