Traders said a weaker-than-expected earnings season, coupled with emerging pressure on technology stocks over AI-led disruption concerns, weighed on sentiment.
In a volatile session, the 30-share BSE Sensex dropped 1,048.16 points, or 1.25%, to close at 82,626.76. The index had slumped as much as 1,140.37 points, or 1.36%, to an intraday low of 82,534.55.
On the BSE, 2,960 stocks declined, 1,253 advanced, and 151 remained unchanged.
Two stock recommendations by MarketSmith India for 16 February:
Buy: Kirloskar Oil Engines Ltd (current price: ₹1,376)
- Why it’s recommended: Strong presence in power generation & industrial engines, beneficiary of infra & capex cycle, expanding high-HP engine portfolio, growing export opportunities, improving order book visibility, and healthy earnings growth trend
- Key metrics: P/E: 36.72, 52-week high: ₹1,434.90, volume: ₹219 crore
- Technical analysis: Cup base breakout
- Risk factors: Cyclical demand exposure, raw material cost volatility, intense industry competition, margin pressure risk, dependence on infra spending, export demand uncertainty
- Buy at: ₹1,360–1,380
- Target price: ₹1,550 in two to three months
- Stop loss: ₹1,290
Buy: Apar Industries Ltd (current price: ₹9,500)
- Why it’s recommended: Strong demand in specialty oils & petroleum additives, diversified business model with value-added products
- Key metrics: P/E:39.30, 52-week high: ₹194 volume: ₹0.50 crore
- Technical analysis: trendline breakout
- Risk factors: Commodity price volatility & input cost risk, regulatory & environmental compliance risk
- Buy at: ₹9,400–9,600
- Target price: ₹10,300 in two to three months
- Stop loss: ₹9,150
Nifty 50 performance | 13 February
Indian equities ended sharply lower on 13 February, with the Nifty 50 declining 336 points, or 1.30%, to close at 25,471.10, after trading in a range of 25,444–25,630. The index slipped decisively below 25,500, reflecting sustained selling pressure through the afternoon, while Sensex mirrored the weakness.
Market breadth remained firmly negative, with 766 advances against 2,388 declines, underscoring broad-based risk aversion. Sectorally, Metals (-3.3%) and Realty (-2.2%) led to losses, followed by FMCG, IT, and Oil & Gas, while Financials also remained under pressure with both Private Banks and Financial Services indices shedding more than 1%. The sell-off was attributed to profit-booking at higher levels amid cautious global cues and persistent concerns around commodity volatility.
Technically, Nifty’s close near the day’s low signals weak momentum; immediate support is placed around 25,400, with a breach potentially opening room toward 25,250, while 25,700–25,800 now acts as a near-term resistance zone. Overall sentiment remains fragile heading into the next session.
Nifty 50 ended at 25,471, extending its recent corrective phase and forming a lower-highs and lower-lows on the daily chart, indicating short-term trend fatigue. Price action shows rejection near the falling short-term moving averages, with the index slipping below the 20- and 50-day averages, while attempting to hold above the longer-term 200-DMA.
The recent price structure also hints at a potential island reversal formation, characterized by a gap-down following a brief consolidation gap-up phase, signalling an abrupt sentiment shift and reinforcing the short-term bearish undertone. The RSI is currently placed around 48, drifting below the neutral 50 mark, suggesting weakening momentum without yet entering oversold territory. This indicates room for further downside unless momentum stabilizes. Meanwhile, the MACD has registered a recent bullish crossover from deeply negative levels, but the histogram bars are moderating, indicating a fragile recovery attempt rather than a confirmed trend reversal.
According to O’Neil’s methodology of market direction, the Indian equity market has transitioned from a Downtrend to a Rally Attempt, indicating an early improvement in the near-term market tone.
Nifty declined for a second consecutive session, closing below key short- to medium-term moving averages, signalling a deterioration in near-term technical structure. On the downside, 25,400–25,100 is expected to offer an initial buffer, where selective buying interest could emerge on further weakness. However, upside attempts are likely to encounter stiff resistance in 25,800–26,000, an area that has consistently witnessed supply pressure. A sustained and decisive close above 26,000 would be a critical technical development, potentially reinstating bullish momentum and opening the path for a move toward 26,300–26,400 in the near term.
Nifty Bank performance | 13 February
Nifty Bank opened with a gap-down opening at 60,504.40 and remained in negative territory throughout the session, reflecting cautious investor sentiment. The index gradually drifted lower, touching an intraday low of 60,073.55, indicating persistent selling pressure. It finally closed at 60,186.65, declining 553.10 points (-0.91%), suggesting continued profit booking at higher levels.
The failure to recover meaningfully from intraday lows highlights underlying supply and a lack of strong buying interest. Elevated market volatility and guarded positioning ahead of key macroeconomic developments further weighed on sentiment. Technically, a mildly bearish candle formation indicates short-term consolidation with a slight negative bias prevailing in the near term.
From a momentum perspective, the RSI (14) is placed around 53–55, hovering near the neutral zone, indicating balanced momentum without strong directional conviction. The indicator has shown slight improvement but remains below overbought territory. The MACD is in positive territory with the MACD line above the signal line and a gradually expanding histogram, suggesting a mild pickup in bullish momentum. However, the slope is moderate rather than aggressive.
This setup indicates that while underlying strength exists, conviction buying is yet to emerge decisively, keeping the index in a consolidation phase rather than a confirmed breakout.
On the technical front, immediate support for Nifty Bank is placed near 59,750–59,550, aligning with the 21- and 50-DMA, while stronger support is seen around 58,540, coinciding with the 100-DMA. A break below these levels could invite extended correction toward 57,100 (200-DMA).
On the upside, resistance is positioned near 60,600–60,800, followed by a stronger hurdle around 61,200. Given mixed global cues and rotation within financials, the index is likely to remain range-bound with a positive bias if it sustains above 59,500. A decisive move above 60,800 may trigger fresh momentum-led buying in the coming sessions.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
