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Indian equity markets extended losses for the second consecutive session on Thursday, February 13, 2026, with benchmark indices closing sharply lower amid broad-based selling pressure. The IT sector carnage continued for the third straight day, with growing concerns over AI's impact triggering panic selling. The Nifty IT index plunged 8% this week, marking its steepest weekly decline since April 2025.
Key Market Closings (Official Close):
Nifty 50: 25,471.10 (-336.10 points, -1.30%)
Sensex: 82,626.76 (-1,048.16 points, -1.25%)
Bank Nifty: 60,186.65 (-553.10 points, -0.91%)
Market Verdict: Weak sentiment with negative breadth divergence despite selective pockets of strength in financials.
Closing: 25,471.10
Open: 25,571.15
High: 25,630.35
Low: 25,444.30
Technical Structure:
Nifty formed a bearish candle with upper shadow, signaling rejection of higher levels.
The index breached the critical 20-day SMA (Simple Moving Average) at 25,468.
Immediate Resistance levels are 25,550, 25,630, and 25,800.
Immediate Support levels are 25,400 and the 25,300–25,200 zone (200-DMA).
Technical Outlook: Bears are gaining strength. If the 25,400 support fails in the next session, the index could slide toward the 200-day moving average zone of 25,200–25,300. India VIX above 13 signals heightened volatility and nervousness among market participants.
Closing: 60,186.65
Open: 60,504.40
High: 60,621.90
Low: 60,073.55
The banking index showed relative resilience compared to broader markets, declining only 0.91%. Private banks witnessed mixed action, with selective buying in State Bank of India and IndusInd Bank offsetting weakness in HDFC Bank and ICICI Bank.
Technical Levels:
Resistance levels at 60,400, 60,600, and 60,800.
Support levels at 60,000 (psychological), followed by 59,600 and 59,200.
Advances: 762 stocks
Declines: 2,387 stocks
Unchanged: 99 stocks
Advance/Decline Ratio: 0.32 (762 ÷ 2,387)
Negative Divergence Alert:
Despite the Nifty declining only 1.30%, market breadth presents a more concerning picture. An A/D ratio of just 0.32, well below 1.0, indicates widespread selling across the broader market while only select heavyweights provided limited support.
Interpretation:
Lack of broad-based participation in any potential recovery.
Selling pressure distributed across small and midcap segments.
Any bounce may be short-lived without improvement in breadth.
Retail investors facing higher losses than the index suggests.
52-week highs: 44 stocks (including Eicher Motors, Bharat Forge, GVPIL, Larsen & Toubro)
52-week lows: 131 stocks (including Muthoot Finance, Awfis, Asian Hotels North)
High/Low Ratio: 0.34 (bearish)
Upper Circuit: 15 stocks
Lower Circuit: 8 stocks
Analysis: The 52-week high/low ratio of 0.34 confirms underlying weakness. For every stock hitting new highs, nearly three stocks are making new lows, highlighting deteriorating market health.
Put-Call Ratio: 0.452
Total Call Open Interest: 11,09,098 contracts
Total Put Open Interest: 5,01,282 contracts
Strikes Analyzed: 93
Interpretation: A PCR below 0.7, specifically 0.452, indicates strong bullish sentiment among options traders despite weak price action. This suggests positioning for a potential bounce or recovery.
Key Strike Levels:
Maximum Call Open Interest (Resistance Zones):
27,000 strike with 2,68,510 contracts (major psychological resistance)
26,000 strike with 1,85,432 contracts
25,500 strike with 1,43,221 contracts (immediate hurdle)
Maximum Put Open Interest (Support Zones):
25,000 strike with 1,27,771 contracts (critical support)
24,500 strike with 98,654 contracts
24,000 strike with 76,543 contracts
Trading Insight: Strong Call OI concentration at 27,000 suggests formidable resistance, while Put writers heavily defending 25,000 indicate institutional support at that level.
Put-Call Ratio (PCR): 0.876
Total Call Open Interest: 5,92,093 contracts
Total Put Open Interest: 5,18,717 contracts
Strikes Analyzed: 128 strikes
Interpretation: PCR close to 1.0 (specifically 0.876) indicates neutral to cautious sentiment. The nearly balanced Open Interest suggests indecision among traders about near-term direction.
Key Strike Levels:
Maximum Call Open Interest:
60,000 strike with 52,038 contracts
Maximum Put Open Interest:
60,000 strike with 70,791 contracts
Unique Observation: Both maximum Call and Put Open Interest are concentrated at the same 60,000 strike, creating a battleground zone. This suggests:
60,000 is a pivotal level for Bank Nifty.
Heightened volatility expected near this level.
Directional breakout likely once this level is decisively breached.
Options Strategy Consideration: Iron Condor or Straddle strategies may be appropriate given the elevated volatility and neutral positioning.
Relative Outperformers (Lower Decline):
Nifty Pharma declined 0.85% driven by defensive buying and healthcare demand.
Nifty Bank declined 0.91% supported by State Bank of India and IndusInd Bank, alongside positive Q3 results.
Nifty Auto declined 0.95%, led by Eicher Motors gaining 1.56% post earnings.
Deep Losers:
Nifty FMCG declined 1.90% with Hindustan Unilever falling 4.34% amid consumer demand concerns.
Nifty IT declined 1.44% following an 8% weekly crash driven by AI disruption fears.
Nifty Chemicals declined 1.25% due to global demand slowdown concerns.
Nifty Midcap 100 declined 1.71% to 59,438.00.
Nifty Smallcap 250 declined 1.45% to 24,384.65.
Nifty Midcap 150 Quality 50 declined 1.91%.
Top 2 Gainers:
IndusInd Bank (INDUSINDBK): ₹926.25 (+0.38%) – Improved asset quality expectations.
State Bank of India (SBIN): ₹1,196.30 (+0.33%) – Highest volume; institutional buying.
Key Loser:
Punjab National Bank (PNB): ₹118.55 (-1.99%) – Profit booking after recent rally.
Sector Analysis: The banking sector showed resilience with PSU banks, including State Bank of India and Federal Bank, attracting buying interest. Private banks such as HDFC Bank (-1.81%) and ICICI Bank (-1.01%) faced selling pressure. The divergence between PSU and private banks suggests rotation within the sector.
Top 2 Gainers:
Persistent Systems (PERSISTENT): ₹5,473.00 (+0.39%) – Strong Q3 guidance.
Coforge (COFORGE): ₹1,358.90 (-4.40%) – Least decline among large caps.
Key Losers:
Infosys (INFY): ₹1,369.00 (-1.23%, Volume: 45.79 million shares, Value: ₹6,116 crore).
Tata Consultancy Services (TCS): ₹2,695.00 (-2.00%, Volume: 11.17 million shares, Value: ₹2,959 crore).
Sector Crisis: The IT sector continues to hemorrhage, with the Nifty IT index down 8% for the week, its worst weekly performance since April 2025. Concerns over artificial intelligence replacing traditional IT services roles have triggered panic selling. Both Infosys and TCS saw heavy institutional selling despite no company-specific adverse developments.
Top 2 Gainers:
Eicher Motors (EICHERMOT): ₹8,067.00 (+1.56%) – Hit a fresh 52-week high at ₹8,119; strong Royal Enfield demand.
Bajaj Auto: Relatively resilient performance.
Key Loser:
Tata Motors – Under pressure from electric vehicle segment concerns.
Sector Insight: Two-wheeler manufacturers outperformed as rural demand shows signs of recovery. The commercial vehicle segment remains weak due to an infrastructure spending slowdown.
Top 2 Gainers:
Cipla (CIPLA): ₹1,331.70 (+0.13%) – Defensive buying.
Sun Pharma – Marginal gains on US generic approvals.
Key Loser:
Torrent Pharmaceuticals (TORNTPHARM): ₹4,069.80 (-0.18%) – Minor profit booking after a 52-week high.
Sector View: The pharma sector remained relatively defensive with limited downside. The sector continues to attract accumulation as a safe haven during broader market volatility.
Top 2 Gainers:
Britannia Industries – Marginal gains.
Dabur India – Resilient amid sector weakness.
Key Loser:
Hindustan Unilever (HINDUNILVR): ₹2,305.00 (-4.34%, Volume: 2.79 million shares, Value: ₹6,516 crore) – Single stock dragged the entire sector.
Consumer Concerns: The FMCG sector was hit by Hindustan Unilever’s sharp decline amid concerns over urban consumption slowdown and margin pressures from input cost inflation.
GVPIL: ₹479.70 (+20.00%) – Made a 52-week high; strong Q3 earnings beat expectations.
Engineers India (ENGINEERSIN): ₹199.32 (+10.18%) – Net profit surged 219% to ₹347.2 crore; revenue rose 58%.
PWL: ₹106.90 (+6.52%) – Volume surge; technical breakout.
Bajaj Finance (BAJFINANCE): ₹1,030.00 (+3.09%) – Strong earnings growth; highest value traded.
Eicher Motors (EICHERMOT): ₹8,067.00 (+1.56%) – Fresh 52-week high; Royal Enfield momentum.
Standout Story: Engineers India surged over 10% on exceptional Q3 results, with net profit rising 219% year-on-year to ₹347.2 crore and revenue increasing 58% to ₹1,210.2 crore. The stock recorded massive volume of 134 million shares, translating to ₹2,748 crore in traded value, indicating strong institutional buying.
Muthoot Finance (MUTHOOTFIN): ₹3,587.00 (-11.80%) – Crashed to a 52-week low despite a 95% profit jump.
Hindalco Industries (HINDALCO): ₹905.75 (-6.08%) – Q3 profit dropped 45% to ₹2,049 crore.
Silver Bees ETF (SILVERBEES): ₹231.90 (-5.50%) – Decline due to global commodity weakness.
Hindustan Unilever (HINDUNILVR): ₹2,305.00 (-4.34%) – Consumer demand concerns and margin pressure.
Coforge (COFORGE): ₹1,358.90 (-4.40%) – IT sector selloff contagion.
Key Anomaly: Muthoot Finance plunged nearly 12% to hit fresh 52-week lows despite reporting robust Q3 earnings, with net profit jumping 95% to ₹2,656.4 crore and revenue growing 64% year-on-year to ₹4,467.1 crore. This disconnect suggests concerns over valuation and potential regulatory headwinds in the gold loan segment overshadowed strong earnings performance.
Institution | Gross Buy (₹ Cr) | Gross Sell (₹ Cr) | Net (₹ Cr)
FII (Equity): 17,949.52 | 17,841.10 | +108.42
DII (Equity): 17,213.85 | 16,937.00 | +276.85
Combined: 35,163.37 | 34,778.10 | +385.27
Data Source: Moneycontrol.com FII/DII Activity Tracker | NSE Provisional Data
Status: Provisional – Will be reconciled on T+1 date: 14-Feb-2026
Interpretation – Positive Surprise:
Despite the sharp market decline, both FIIs and DIIs were net buyers on February 13:
FII inflow: ₹108.42 crore (marginal but positive after recent selling)
DII inflow: ₹276.85 crore (steady buying by domestic institutions)
Net combined inflow: ₹385.27 crore
This represents a significant positive divergence from price action. Institutional buyers are using the dip to accumulate quality stocks at lower levels, suggesting:
Month-to-Date (February 2026): (Official)
FII Net: +₹6,021.85 crore (cumulative buying)
DII Net: +₹4,221.99 crore (cumulative buying)
Both FII and DII remain net buyers for February 2026, which is a constructive sign for medium-term market trajectory.
INR/USD Exchange Rate (FBIL / RBI Official Reference)
Date: 13-Feb-2026
INR/USD: ₹90.7415 (FBIL Reference Rate)
Previous Close: ₹90.5947
Change: +₹0.1468 (+0.16%)
Other Major Currencies (FBIL Official):
INR/GBP: ₹123.4459 (previous: ₹123.3580)
INR/EUR: ₹107.6218 (previous: ₹107.4459)
INR/100 JPY: ₹59.20 (previous: ₹59.10)
Source: Financial Benchmarks India Pvt Ltd (FBIL) / Reserve Bank of India
Analysis: The rupee weakened marginally by 15 paise against the US Dollar to close at 90.7415. The depreciation reflects continued FII volatility in equity markets, a strong US Dollar index globally, and oil price concerns affecting the import bill.
Key Economic Releases (13-Feb-2026):
No major economic data releases today. Market movement was primarily driven by:
Corporate earnings season (Q3 FY26) in full swing
Global AI disruption narrative impacting IT sector sentiment
Technical factors, including Nifty’s breach of the 20-day moving average triggering stop losses
Upcoming Key Events to Watch:
Corporate Actions:
14-Feb-2026: Multiple Q3 earnings announcements expected
17-Feb-2026: RBI Board Meeting
Week of 17-Feb: Union Budget follow-up measures announcement expected
Global Macro:
US inflation data (CPI) scheduled next week
Federal Reserve minutes release awaited
Geopolitical tensions in the Middle East under ongoing monitoring
Volatility Metrics:
India VIX: 13.24 (+4.85% from previous close)
Interpretation: VIX above 13 signals elevated fear and uncertainty. Options premiums are rising, indicating traders expect continued volatility.
Put-Call Ratio Interpretation:
Nifty PCR (0.452): Bullish, as traders are buying more calls than puts
Bank Nifty PCR (0.876): Neutral, reflecting balanced positioning
Market-wide PCR: Suggests optimism among derivatives traders despite weak price action
Divergence Alert: The disconnect between bearish price action and bullish options positioning creates an interesting setup. Either prices will bounce to align with options sentiment, or options traders will capitulate, leading to further downside.
Bullish Above: 25,550
Immediate Resistance Levels:
25,630
25,800
Immediate Support Levels:
25,400
25,300
Bearish Below: 25,200 (200-day moving average)
Trading Strategy:
Short-term traders should book profits on any bounce toward the 25,550–25,630 resistance zone.
Long-term investors may accumulate quality stocks if Nifty holds the 25,300–25,400 zone.
A close below 25,200 would trigger further weakness toward the 25,000 level.
Pattern: Nifty has formed a bearish engulfing pattern on the daily chart, suggesting continuation of the downtrend unless the 25,630 level is reclaimed.
Critical Level: 60,000 (psychological support and resistance confluence)
Bullish Above: 60,400
Bearish Below: 59,600
Options Insight: Heavy concentration of both Call and Put Open Interest at the 60,000 strike suggests a volatility expansion once this level breaks decisively in either direction.
Stocks to Watch – Long Side (If Market Bounces):
State Bank of India (SBIN): Strong relative strength, holding above key moving averages, with visible institutional buying.
Eicher Motors (EICHERMOT): Fresh 52-week high, positive momentum, and sustained Royal Enfield sales strength.
Cipla (CIPLA): Defensive sector positioning, visible accumulation pattern, and a robust US approval pipeline.
Bajaj Finance (BAJFINANCE): Highest value traded, Q3 results beat expectations, and quality financier status.
Bharat Forge (BHARATFORG): Hit a 52-week high, strong export order book, and auto ancillary exposure.
Stocks to Avoid – Vulnerable Names:
Muthoot Finance: Despite good earnings, the stock hit a 52-week low, suggesting deeper concerns.
IT stocks including Infosys, TCS, and Coforge: Ongoing AI disruption narrative; avoid until sentiment stabilizes.
Hindustan Unilever: Consumer demand concerns and margin pressure; avoid fresh buying.
Hindalco: Q3 profit decline of 45% and commodity cycle headwinds.
Breakout Candidates (Technical Setup):
Engineers India: Strong volume surge post-earnings; momentum likely to continue.
GVPIL: 20% gain with a fresh 52-week high; watch for consolidation before the next leg.
Larsen & Toubro (L&T): Touched a 52-week high; infrastructure play and government capex beneficiary.
Metric | Value | Analysis
Advances | 762 | 24.2% of stocks rose
Declines | 2,387 | 75.8% of stocks fell
A/D Ratio | 0.32 | Severe weakness
Nifty 50 | -1.30% | Headline number
Actual Breadth | 3:1 decline | True market health
Key Insight: While Nifty fell “only” 1.3%, the A/D ratio of 0.32 reveals the decline was three times broader than the index suggests. This is negative divergence — a few large-caps (like Bajaj Finance +3% and Eicher +1.5%) held up the index, masking widespread selling in mid and small-caps. This often signals more downside ahead.
Early Warning Signal: Breadth deteriorates before price — weak breadth today may mean index decline tomorrow.
Distribution Phase: Large investors may be quietly exiting smaller stocks while holding or buying large-caps.
Rally Sustainability: A rally with A/D below 1.0 is vulnerable; healthy rallies have A/D above 1.5.
Correction Depth: When breadth is already weak, as seen today, further index decline usually follows.
Recovery Signal: Market bottoms often occur when extreme breadth weakness (A/D below 0.3) reverses sharply.
52-Week High/Low Ratio: Today recorded 44 stocks at 52-week highs versus 131 at 52-week lows, resulting in a ratio of 0.34. Healthy markets typically have a ratio above 1.0. Today’s 0.34 confirms weakness.
Advance–Decline Line: This is the cumulative sum of advances minus declines over time. When this line falls while the index rises, it is a major red flag.
McClellan Oscillator: Uses exponential moving averages of advance–decline numbers. Readings below -100 signal oversold conditions.
Percentage of Stocks Above 200-Day Moving Average: Healthy bull markets have more than 60% of stocks above their 200-day moving average. Bear markets typically show less than 30%.
Confirm Trends: Only trade in the direction of breadth. Today’s weak breadth indicates caution on long positions.
Spot Reversals: Extreme breadth readings (A/D below 0.3 or above 3.0) often mark turning points.
Position Sizing: Reduce position size when breadth is weak (below 0.8); increase when breadth is strong (above 1.5).
Index vs Stocks: In weak breadth environments, trade index futures or options rather than individual stocks.
Sector Selection: Even in weak breadth conditions, some sectors show positive advance–decline ratios — focus there.
Daily Checklist:
Scenario: You were holding a Nifty long position from yesterday.
What breadth told you: Despite only a 1.3% fall in Nifty, the A/D ratio of 0.32 indicated severe underlying weakness. Seventy-five percent of stocks declined, 131 hit 52-week lows, and small-caps fell harder at -1.76%.
Action: Exit long positions early in the session when breadth weakness became apparent, by around 11 AM when the A/D ratio would have clearly turned negative. Avoid fresh long positions even if Nifty bounces, and wait for breadth to improve.
Next Steps: On Monday, monitor whether the A/D ratio improves above 1.0. If it remains below 0.8 for two to three more days with a falling index, the market may test the 25,000 level, which corresponds to maximum put open interest support. Only turn bullish when breadth shows two or more consecutive days of A/D above 1.2.
Nifty 50:
Bullish Scenario: Close above 25,550 → Target 25,800–26,000
Bearish Scenario: Sustained trade below 25,400 → Target 25,200–25,000
Bank Nifty:
Critical Level: 60,000 (major Open Interest concentration)
Breakout: Above 60,400 → Rally toward 60,800–61,000
Breakdown: Below 59,600 → Fall toward 59,000–58,500
For Intraday Traders:
Avoid fresh shorts near 25,400 support (risk-reward unfavorable).
Wait for a clear breakout above 25,550 or a breakdown below 25,400 before taking directional bets.
High VIX suggests volatility; keep tight stop losses.
For Short-Term Investors (1–3 months):
Accumulate quality large-caps such as SBI, Cipla, and L&T if Nifty holds the 25,300–25,400 zone.
Avoid catching falling knives in IT stocks until sentiment stabilizes.
Maintain 20–30% cash for further dips.
For Long-Term Investors (1+ years):
Use market weakness to build positions in fundamentally strong stocks.
Focus on sectors with earnings visibility, including Banking, Pharma, and select Industrials.
A SIP or staggered buying approach is recommended given prevailing uncertainty.
Technical Breakdown: A close below Nifty 25,200 (200-DMA) could trigger a sharp selloff.
Global Factors: US Federal Reserve policy, geopolitical tensions, and oil prices.
Earnings Disappointments: Q3 results below expectations could worsen sentiment.
Currency Volatility: Rupee weakness beyond 91/USD could pressure markets.
FII Reversal: Any resumption of heavy FII selling could overwhelm DII buying.
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