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Trade Setup for February 20: Nifty below key averages; will 25,400 hold or is 25,100 next?Selling pressure emerged soon after the opening tick, dragging the Nifty lower from the day's highs. The decline intensified in the mid-to-late part of the session, with the index closing near the day's low.By Meghna Sen  February 19, 2026, 8:21:18 PM IST (Published)3 Min ReadThe Nifty 50 wiped out the gains of the previous three sessions in a single trading day, as markets witnessed a sharp sell-off amid escalating geopolitical tensions between the US and Iran.

The index opened 54 points higher but failed to sustain near the 25,900 mark.

Selling pressure emerged soon after the opening tick, dragging the benchmark lower from the day's highs. The decline intensified in the mid-to-late part of the session, with the Nifty closing near the day's low, marking its weakest close since the post-Budget session on February 3, 2026.

The Nifty plunged 365 points to settle at 25,454.

As a result of the sharp correction, the market capitalisation of BSE-listed companies eroded by more than ₹7 lakh crore in a single session.

In an otherwise weak market, ONGC, HDFC Life and Hindalco were among the few Nifty gainers. On the flip side, InterGlobe Aviation, UltraTech Cement and Mahindra and Mahindra bore the brunt of the selling pressure and ended as top losers.

All sectoral indices closed in the red, with Realty, Media, Auto and Consumer Durables emerging as the worst hit.

Broader markets also declined sharply in line with the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling 1.6% and 1.27%, respectively.

On the macro front, investors will track key data releases on Friday, including India's Manufacturing and Services PMI, US CPI inflation data, and US Q4 GDP numbers.

Nagaraj Shetti of HDFC Securities said the short-term trend of the Nifty has reversed sharply after a brief bounce. He said that a slide below 25,400 could drag the index towards the next support zone of 25,200 to 25,100 in the near term.

Rupak De of LKP Securities said the Nifty slipped below both its 50-day moving average and 21-day EMA in one session.

With the 200-day moving average now positioned nearby, he warned that follow-up selling on Friday or Monday could lead to a breakdown below this crucial level, potentially reactivating the broader bearish trend.

He sees support at 25,330 and 25,000, while resistance is placed around 25,650.

According to Nandish Shah of HDFC Securities, the Nifty is on the verge of breaking its previous swing low of 25,372. A breach of this level would confirm a lower top at 25,882 followed by a lower bottom on the daily charts, signalling further weakness.

He added that below 25,372, the index could extend its decline towards the 200-day EMA placed at 25,233, while the 25,550 to 25,600 zone may act as short-term resistance.

Nilesh Jain of Centrum Finverse said immediate resistance is placed at the 100-day moving average near 25,700.

On the downside, the crucial support lies at the 200-day moving average around 25,310. A decisive break below this level could open the door for further downside towards 25,100, he said.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsBSE SensexNifty 50share market todayTrade setup