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.
This research is for information and education only and is not investment advice. Figures may be provisional. Oorjita.AI and its authors may hold positions in securities mentioned. Please consult a SEBI-registered investment adviser before making investment decisions. Published Friday, 13 February 2026, 9:11 PM IST.
Bearish Marubozu — A candlestick with no upper shadow and a minimal lower shadow. It signals relentless selling from open to close with zero buying recovery.
All four layers aligned bearish. A/D = capitulation breadth.
*Note: 19-Feb (Chhatrapati Shivaji Maharaj Jayanti) — FBIL did not publish a fresh forex rate (carried 18-Feb forward); NSE equity market was operational; FII/DII data present.
Market Verdict: Weak sentiment with negative breadth divergence despite selective pockets of strength in financials.
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% YoY to ₹4,467.1 crore.
Cipla (CIPLA): Defensive sector; accumulation pattern visible; US approval pipeline robust
Why This Topic Today?: Today's market showed a classic case of negative divergence - indices fell only 1.3%, but 75% of stocks declined.
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.
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 Outlook: Bears are gaining strength. If the 25,400 support fails in the next session, we could see a 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[1].
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 SBI and IndusInd Bank offsetting weakness in HDFC Bank and ICICI Bank.
Advances: 762 stocks Declines: 2,387 stocks Unchanged: 99 stocks A/D Ratio: 0.32 (762 ÷ 2,387)
Despite the Nifty declining only 1.30%, the market breadth tells a more concerning story. With an A/D ratio of just 0.32 (well below 1.0), this indicates a narrow market where selling is widespread across the broader market while only select heavyweights are providing limited support.
Put-Call Ratio (PCR): 0.452 Total Call OI: 11,09,098 contracts Total Put OI: 5,01,282 contracts Strikes Analyzed: 93 strikes
Trading Insight: The strong concentration of Call OI at 27,000 suggests this level will act as a formidable resistance. On the downside, 25,000 is being heavily defended by Put writers, indicating institutional support at that level.
Put-Call Ratio (PCR): 0.876 Total Call OI: 5,92,093 contracts Total Put OI: 5,18,717 contracts Strikes Analyzed: 128 strikes
Maximum Call OI: ₹60,000 Strike - 52,038 contracts Maximum Put OI: ₹60,000 Strike - 70,791 contracts
Unique Observation: Both maximum Call and Put OI are concentrated at the same 60,000 strike, creating a battleground zone. This suggests:
Options Strategy Consideration: Iron Condor or Straddle strategies may be appropriate given the elevated volatility and neutral positioning.
| Sector | % Change | Key Drivers |
|---|---|---|
| Nifty Pharma | -0.85% | Defensive buying, healthcare demand |
| Nifty Bank | -0.91% | SBI, IndusInd support; Q3 results positive |
| Nifty Auto | -0.95% | Eicher Motors gains 1.56% post earnings |
Table 1: Sectoral Relative Strength Analysis
| Sector | % Change | Key Concerns |
|---|---|---|
| Nifty FMCG | -1.90% | HUL down 4.34%, consumer demand worries |
| Nifty IT | -1.44% | 8% weekly crash; AI disruption fears[2] |
| Nifty Chemicals | -1.25% | Global demand slowdown concerns |
Table 2: Sectoral Weakness Analysis
Sector Analysis: Banking sector showed resilience with PSU banks (SBI, Federal Bank) attracting buying interest. Private banks like HDFC Bank (-1.81%) and ICICI Bank (-1.01%) faced selling pressure. The divergence between PSU and private banks suggests rotation within the sector.
Sector Crisis: IT sector continues to hemorrhage with the Nifty IT index down 8% for the week, its worst weekly performance since April 2025. Concerns over AI replacing traditional IT services roles have triggered panic selling. Both Infosys and TCS saw heavy institutional selling despite no company-specific bad news[2][3].
Sector Insight: Two-wheeler makers outperformed as rural demand shows signs of recovery. Commercial vehicle segment remains weak due to infrastructure spending slowdown.
Sector View: Pharma remained relatively defensive with limited downside. The sector is attracting accumulation as a safe haven during broader market volatility.
Consumer Concerns: FMCG sector hit by HUL's sharp decline amid concerns over urban consumption slowdown and margin pressures from input cost inflation.
| Stock | LTP (₹) | % Change | Reason / News |
|---|---|---|---|
| GVPIL | 479.70 | +20.00% | Made 52W high; strong Q3 earnings beat expectations |
| ENGINEERSIN | 199.32 | +10.18% | Net profit soared 219% to ₹347.2 Cr; revenue up 58%[4] |
| PWL | 106.90 | +6.52% | Volume surge; technical breakout |
| BAJFINANCE | 1,030.00 | +3.09% | Strong earnings growth; highest value traded |
| EICHERMOT | 8,067.00 | +1.56% | Fresh 52W high; Royal Enfield momentum |
Table 3: Top 5 Gainers - 13 February 2026
Standout Story: Engineers India (ENGINEERSIN) surged over 10% on exceptional Q3 results with net profit jumping 219% YoY to ₹347.2 crore and revenue rising 58% to ₹1,210.2 crore. The stock recorded massive volume of 134 million shares (₹2,748 Cr value), indicating strong institutional buying[4].
| Stock | LTP (₹) | % Change | Reason / News |
|---|---|---|---|
| MUTHOOTFIN | 3,587.00 | -11.80% | Crashed to 52W low despite 95% profit jump[4] |
| HINDALCO | 905.75 | -6.08% | Q3 profit dropped 45% to ₹2,049 Cr[4] |
|---|---|---|---|
| SILVERBES | 231.90 | -5.50% | Silver ETF decline on global commodity weakness |
| HINDUNILVR | 2,305.00 | -4.34% | Consumer demand concerns; margin pressure |
| COFORGE | 1,358.90 | -4.40% | IT sector selloff contagion |
Table 4: Top 5 Losers - 13 February 2026
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% YoY to ₹4,467.1 crore. This disconnect suggests concerns over valuation and potential regulatory headwinds in the gold loan segment overshadowing strong earnings[4].
| 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 |
Table 5: Institutional Flows - 13 Feb 2026 (Provisional)
Data Source: Moneycontrol.com FII/DII Activity Tracker | NSE Provisional Data[5] Status: {Provisional - Will be reconciled on T+1 date: 14-Feb-2026}
Despite the sharp market decline, both FIIs and DIIs were net buyers on February 13:
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}
Both FII and DII remain net buyers for February 2026, which is a constructive sign for medium-term market trajectory[5].
Date: 13-Feb-2026 INR/USD: ₹90.7415 (FBIL Reference Rate) Previous Close: ₹90.5947 Change: +₹0.1468 (+0.16%)
No major economic data releases today. Market movement primarily driven by:
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[1].
Bullish Above: 25,550 Immediate Resistance: 25,630 | 25,800 Immediate Support: 25,400 | 25,300 Bearish Below: 25,200 (200-DMA)
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 OI at 60,000 suggests a volatility explosion once this level breaks decisively in either direction.
A subtle but important rotation is underway within the banking sector. While the Nifty Bank index fell 0.91%, PSU banks (SBI, Federal Bank, Bank of Baroda) showed resilience while private banks
Actionable Insight: Accumulate quality PSU banks (SBI, Canara Bank) on dips for medium-term returns.
Despite overall market weakness, Pharma and FMCG sectors (least decliners) are showing signs of accumulation at lower levels. Smart money is quietly building positions in:
These sectors typically lead during uncertain times and could outperform in coming weeks.
The Nifty Midcap 100 (-1.71%) and Nifty Smallcap 250 (-1.45%) declined more than Nifty 50, creating valuation pockets. Stocks hitting 52-week lows (131 stocks) include fundamentally strong names being sold due to:
Opportunity: Selective bottom fishing in quality small/midcaps with strong earnings growth could yield excellent returns over 6-12 months.
While the 8% weekly decline in Nifty IT appears catastrophic, historical analysis shows such sharp corrections often create excellent entry points. The AI disruption narrative, while valid long-term, may be overblown in the near term. IT services companies like TCS and Infosys continue to guide for steady growth.
Contrarian View: Extreme fear in IT (Nifty IT down 8% in a week) may present a tactical buying opportunity for 3-6 month horizon once panic subsides.
Despite the sharp fall, the Nifty PCR of 0.452 remains bullish (< 0.7), suggesting options traders are not panic-buying puts. The max put OI at 25,000 (vs spot 25,471) indicates traders believe this level will hold. This divergence between spot market weakness and options market confidence is noteworthy.
Correlation: Indian markets are currently influenced more by domestic factors (earnings, FII flows, technical levels) than global cues. However, sustained weakness in US tech stocks is creating overhang on Indian IT sector.
Why This Topic Today? Today's market showed a classic case of negative divergence - indices fell only 1.3%, but 75% of stocks declined. Understanding market breadth helps you see beyond headline numbers and gauge true market health.
Market breadth measures the number of stocks participating in a market move. It answers: "Is this rally/decline broad-based (many stocks) or narrow (few large-caps)?" Breadth indicators help identify market strength or weakness that index levels alone can't reveal.
Formula: A/D Ratio = Number of Advancing Stocks ÷ Number of Declining Stocks
| A/D Ratio | Market Condition | What It Means | ||
|---|---|---|---|---|
| > 2.0 | > 2.0 | Very Strong | Very Strong | Broad-based rally; healthy |
| uptrend | ||||
| 1.0 - 2.0 | Strong | More stocks rising; bullish breadth | ||
| 0.8 - 1.0 | Neutral | Balanced; no clear direction | ||
| 0.5 - 0.8 | Weak | More stocks falling; caution | ||
| < 0.5 | Very Weak | Broad-based decline; bearish | ||
| < 0.3 | Severe Weakness | Capitulation; extreme selling |
| 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 |
52-Week High/Low Ratio: Today: 44 highs vs 131 lows = 0.34 ratio. Healthy markets have ratio > 1.0. Today's 0.34 confirms weakness.
Advance-Decline Line: Cumulative sum of (Advances - Declines) over time. When this line falls while index rises, it's a major red flag.
McClellan Oscillator: Uses exponential moving averages of A/D numbers. Readings below -100 signal oversold conditions.
Percentage of Stocks Above 200-DMA: Healthy bull markets have > 60% of stocks above their 200-day moving average. Bear markets show < 30%.
Scenario: You were holding a Nifty long position from yesterday.
What breadth told you: Despite only -1.3% Nifty fall, the A/D ratio of 0.32 indicated severe underlying weakness. 75% of stocks declined, 131 hit 52-week lows, and small-caps fell harder (-1.76%).
Action: Exit long positions early in the session when breadth weakness became apparent (by 11 AM, A/D would have been clearly negative). Avoid fresh longs even if Nifty bounces - wait for breadth to improve.
Next Steps: Monday, watch if A/D improves above 1.0. If it stays < 0.8 for 2-3 more days with falling index, we may test 25,000 (max put OI support). Only turn bullish when breadth shows 2+ consecutive days of A/D > 1.2.
Next Edition: Market Prabhat – Morning Newsletter for 10 February 2026
Website: oorjita.ai
Location: Bengaluru, Karnataka, India
Contact: insights@oorjita.ai
www.oorjita.ai is not operated by a broker, a dealer, or a registered investment adviser. Under no
circumstances does any information posted on www.oorjita.ai represent a recommendation to buy
or sell a security. The information on this site, and in its related newsletters, is not intended to be,
nor does it constitute investment advice or recommendations. The information on this site is in no
way guaranteed for completeness, accuracy or in any other way. In no event shall Oorjita Fin AI
Services be liable to any member, guest or third party for any damages of any kind arising out of the
use of any content or other material published or available on www.oorjita.ai, or relating to the use
of, or inability to use, www.oorjita.ai or any content, including, without limitation, any investment
losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.
Past performance is a poor indicator of future performance.
Intellectual Property: This newsletter is proprietary content of Oorjita FinAI Services.
Reproduction, redistribution, or commercial use without explicit written permission is prohibited.
Prepared by: Oorjita FinAI Research Team
Contact: research@oorjita.ai | www.oorjita.ai
