Indian Markets End Sharply Lower as IT Sector Meltdown Continues
The Indian equity benchmarks ended sharply lower on February 13, with the Nifty 50 closing below the 25,500 mark amid broad-based selling pressure. At close, the Sensex was down 1,048.16 points or 1.25 percent at 82,626.76, and the Nifty was down 336.10 points or 1.30 percent at 25,498.25.
Among the top laggards on the Nifty were Hindalco Industries, Hindustan Unilever, Eternal, Adani Enterprises, and ONGC. On the other side, Bajaj Finance, Eicher Motors, SBI Life Insurance, State Bank of India, and Cipla managed to close in positive territory.
Sectoral Analysis
Sectorally, all major indices ended in the red. Energy, Metal, and Realty indices declined 2–3 percent each, while IT, Consumer Durables, FMCG, Telecom, Infra, Auto, Power, PSU, and Oil & Gas indices fell around 1 percent each.
Market Breadth
The market breadth was weak as the advance-decline ratio was heavily skewed in the favour of bears at day’s close. A total of 431 stocks out of the Nifty 500 universe ended in the red.
Nifty View
According to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, Nifty opened with a gap down and stayed confined to a 186-point range through the session. On the daily chart, it formed a bearish candle. Importantly, the index has slipped below its 20, 50 and 100-day EMAs, which weakens the short-term trend structure. In ADX, DI− has crossed above DI+, signalling rising bearish dominance, while RSI has dropped below the 50 mark and continues to trend lower which is another sign of fading momentum.
Going ahead, the immediate support for Nifty is placed in the 25,450–25,400 zone. Any sustainable move below this zone could result in Nifty filling its gap on the downside and move towards 25,200, followed by 25,000 in the short term. On the upside, the 50-day EMA zone of 25,650–25,700 zone is likely to act as an immediate resistance.
Bank Nifty View
Bank Nifty traded within a 431-point range over the last four sessions and has now broken below the lower end of the consolidation zone. The breakdown was accompanied by a bearish daily candle. RSI, which had plateaued near 60, has started turning down, suggesting bulls are losing grip around the key support area.
For Bank Nifty, the immediate support is placed in the 20-day EMA zone of 60,000–59,900. Any sustained move below this zone could lead to Index extending its weakness on the downside towards 59,500, followed by 59,000 in the short term. On the upside, the zone of 60,500–60,600 zone is likely to act as an immediate support.
Conclusion
The Indian stock market witnessed a sharp decline on February 13, with the Nifty 50 closing below the 25,500 mark. The IT sector was the top loser, with Hindalco Industries and Hindustan Unilever being the top losers. The market breadth was weak, with 431 stocks out of the Nifty 500 universe ending in the red.
Investors are advised to stay cautious and keep a close eye on the market trends. It is recommended to consult a financial advisor before making any investment decisions. For more information on the Indian stock market, visit our website and stay updated with the latest news and analysis.