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Morning Star Signals Possible Reversal – Samco

Dhuhpesh Dhameja, Derivatives Research Analyst, SAMCO Securities

🕗 Updated for 20 August 2026 on 19 August 2026 @ 7.00 pm

Nifty Rebounds After 12-Day Decline; Morning Star Signals Possible Reversal

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities

Nifty closed at 24,231.85, gaining 153.55 points or 0.64%, and rebounded after 12 consecutive lower closes. The formation of a Morning Star candlestick pattern near the psychological 24,000 level provides an early indication of a potential bullish reversal.

However, the Nifty reversal still requires confirmation. The index must sustain above 24,300 to strengthen the recovery towards 24,420. Immediate support is placed at 24,140, followed by the crucial 24,000 level. Failure to protect this base could revive selling pressure.

Momentum indicators are improving. The RSI recovered to 48.33, but remains below its RSI average of 55.27, indicating that the recovery is still at an early stage. India VIX declined sharply to 10.76, reflecting reduced market volatility and improved risk sentiment.

The Nifty option chain shows strong Put support near 24,000, while substantial Call open interest at higher strikes may restrict the recovery.

Overall, the Nifty outlook has shifted to cautiously positive. A decisive close above 24,300 is necessary to confirm the Morning Star reversal and extend the rebound towards 24,420.

Nifty Support and Resistance Today

Level Nifty
Immediate Support 24,140
Major Support 24,000
Breakout Level 24,300
Upside Target 24,420
Market Bias Cautiously Positive

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Bank Nifty Recovery Faces Key Resistance at 57,700

Bank Nifty closed at 57,495.90, up 256.15 points or 0.45%. Although the index extended its recovery, it surrendered part of its intraday gains, indicating continued selling pressure at higher levels. The broader market rebound provided some support to banking and financial stocks.

Technically, Bank Nifty continues to trade within a consolidation range. The 57,700 level is the crucial breakout hurdle. A sustained move above it could strengthen bullish momentum and open the way towards 58,000 and 58,268.

On the downside, immediate support is placed at 57,180, while 57,000 remains the critical base. A decisive break below 57,000 could trigger a correction towards 56,600, followed by 56,050.

Momentum has improved, with the RSI recovering to 50.45, slightly above the neutral level of 50. However, it remains below its RSI average of 52.14, showing that buying momentum has not yet received strong confirmation.

Bank Nifty derivatives data reflects a defined trading range. The 57,000 strike holds the highest Put open interest, establishing an important support base. The highest Call open interest is visible at 57,500, followed by 58,000, indicating overhead resistance. The PCR of 0.844 also reflects cautious positioning.

Overall, the Bank Nifty outlook is cautiously positive, but a sustained move above 57,700 is essential to confirm a stronger bullish reversal. Until then, the index may remain range-bound, with selling pressure emerging near resistance levels.

Bank Nifty Support and Resistance Today

Level Bank Nifty
Immediate Support 57,180
Major Support 57,000
Breakout Level 57,700
Upside Targets 58,000 / 58,268
Downside Targets 56,600 / 56,050
Market Bias Range-Bound to Cautiously Positive

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