Trade Setup For Feb. 13: Domestic equity benchmarks clocked their worst session since the Budget day, led by declines in Tata Consultancy Services Ltd. and Infosys Ltd. as IT stocks entered bear market territory, following a selloff in tech shares in the US the day before. The BSE Sensex fell 0.7% to below 83,630 and the NSE Nifty 50 managed to close above 25,800 after declining 0.6%. Both the benchmark indices saw their steepest fall since Feb. 1, 2026. Nifty IT index slid to a near 10-month low, entering a bear market territory, and remains weakest so far this year after plunging over 12% in 2025.
Despite the tech selloff, D-Street analysts remain positive on the overall market sentiment for consolidation and a near-term breather window for buying opportunities. The NSE Nifty 50 index formed a bearish candle with a lower high and a lower low signaling profit booking at higher levels around the 26,000 levels. According to domestic brokerages, stock-specific movements are likely to remain in focus as the quarterly earnings season comes to an end.
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'Going forward, the Nifty 50 index likely to consolidate in the range of 25,500-26,000. Only a move above 26,000 levels will open upside toward the key resistance area of 26,200-26,300 in the coming sessions, according to Bajaj Broking. The overall outlook remains positive and the current breather should be seen as buying opportunities. The immediate support for Nifty 50 is placed at 25,500-25,400, which aligns with last week's breakout area and the 20-day EMA,'' said the brokerage.
Nifty Bank
Bank Nifty formed a high wave candle with small real body signaling consolidation amid stock specific action. PSU banking stocks continues to outperform the private banking stocks. Going ahead, a move above Monday's high of 60,876 will lead to further upside toward the 61,200 and 61,800 levels in the coming sessions, according to brokerages.
''Failure to move above Tuesday high will signal some consolidation in the range of 59,800-60,800 levels. Bias remains positive and we believe dips should be used as buying opportunity, with short term support seen at 59,500-59,200 levels being the confluence of the 20- and 50-days EMA. Volatility is likely to remain elevated amid uncertain global cues,'' said Bajaj Broking.
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Market Recap
On the day, the Nifty 50 fell 0.57% to 25,807.2 and the BSE Sensex shed 0.66% to 83,674.92. Twelve of the 16 sectors logged losses. The broader small-caps and mid-caps lost 0.6% and 0.5%, respectively. The declines come even as sentiment broadly improved earlier this week, after India and the US unveiled an interim framework, while India and the European Union finalised a landmark trade deal in January. The Nifty 50 index had gained 1.2% in the last four sessions.
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