Trade Setup Feb 13: Broader positional trend remains bullish
Nifty falls 146 pts to 25,807 as IT stocks drag markets. Analysts see short-lived correction; key supports at 25,600–25,700, resistance near 26,000.
Trade Setup Feb 13: Broader positional trend remains bullish
The Nifty 50 snapped a four-day winning streak, falling 146 points to 25,807, as IT stocks dragged markets lower. Analysts believe the correction could be short-lived, with key supports holding.
Indian equity benchmarks paused their recent rally on Thursday, with the Nifty 50 declining 146 points to close at 25,807, failing to breach the crucial 26,000 resistance level. The broader market sentiment tilted bearish, led by a steep selloff in technology stocks.
After a muted start, the index drifted lower through the session, trading largely in the 25,750–25,850 range. Brief recovery attempts lacked follow-through, resulting in a subdued close.
IT Stocks Lead Market Weakness
The Nifty IT index plunged 5.5%, hitting a ten-month low and emerging as the biggest sectoral drag. Heavyweights Tech Mahindra, Infosys and TCS faced significant selling pressure. The decline reflected a global rout in software shares amid concerns that AI-led startups may disrupt traditional tech business models.
Infosys’ ADRs were down over 4%, while Wipro’s ADR slipped 3.35% during US trading hours.
Broader Markets and Currency
Profit booking extended to broader markets, with the Nifty Midcap 100 falling 0.47% and the Nifty Smallcap 100 down 0.64%.
Meanwhile, the rupee appreciated 11 paise to 90.59 per dollar, supported by foreign inflows and possible RBI intervention.
Stock Movers
Gainers: Bajaj Finance, Shriram Finance, Eicher Motors
Losers: Tech Mahindra, Infosys, TCS
Technical Outlook for February 13
Despite the pullback, analysts maintain a constructive near-term outlook:
Nagaraj Shetti (HDFC Securities): Trend remains positive; support near 25,600.
Rupak De (LKP Securities): Nifty holds above 20DMA; resistance at 26,000, support at 25,750–25,500.
Sudeep Shah (SBI Securities): Key support zone at 25,700–25,670; breakout above 25,940 may push index toward 26,100.
Nandish Shah (HDFC Securities): 50-day EMA at 25,685 offers immediate support; bullish bias intact while above major moving averages.
Analysts note that while the index failed to sustain above 26,000, the broader positional trend remains bullish. A decisive breakout above this level could open the path toward a fresh all-time high beyond 26,373.
