Market Wrap

Indian equity markets witnessed a turbulent week, with initial optimism quickly giving way to sustained selling pressure—led by a sharp correction in the IT sector. The Nifty50 slipped below the crucial 25,500 mark, ending the week down 0.87%, signaling resistance at higher levels and weakening momentum.

The late-week slide was particularly steep. Over the last three sessions alone, the index dropped 538 points, falling from 26,009 to 25,471, highlighting aggressive profit-booking and cautious positioning by investors.

The Nifty IT index plunged nearly 14% in February, emerging as the biggest drag on the broader market amid concerns over global growth, currency dynamics, and technology spending outlook. Sectoral performance was broadly weak, with Healthcare the only major gainer, as the Nifty Healthcare Index rose 1.73%, supported by a constructive technical setup and defensive demand.

What's Ahead

Market direction in the coming week will hinge on global macro developments, currency trends, and institutional flows. Investors are closely watching upcoming Q4 GDP data from the US and Japan, which could shape expectations around global growth and monetary policy.

Liquidity conditions in Asia may remain thin, as Chinese markets will be closed for the Lunar New Year, potentially amplifying volatility.

From a technical perspective, the Nifty faces immediate support at 25,200–25,100, while resistance is placed at 25,630–25,700. A decisive move above resistance could revive bullish momentum, but failure to do so may keep markets range-bound with a negative bias.

Institutional Activity

Market Snapshots

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 witnessed a sharp breakdown, closing at 25,471.10 with broad-based selling across sectors and extremely weak market breadth, indicating distribution at higher levels. The index traded within a wide intraday range but failed to sustain even minor recoveries, reflecting persistent bearish pressure led by IT, FMCG, metals, and select financial heavyweights. Technically, the structure has turned fragile as the index continues to form lower highs on the daily chart, while RSI slipping below the 50 mark confirms strengthening downside momentum and loss of bullish control. Unless the index quickly reclaims the 25,900 zone, the bias remains negative with potential for further decline toward immediate supports at 25,060 and 24,801. Any pullback is likely to face selling near resistance levels of 25,895 and 26,153, keeping volatility elevated and favoring a sell-on-rise approach in the near term.

Bank Nifty

The NIFTY BANK index closed at 60,186.65 after persistent selling in both private and PSU banking stocks, signaling weakening sentiment in the financial space. Despite a steady start and early uptick, the index gradually drifted lower through the session, forming a bearish intraday structure and closing near the day’s lower band, which reflects continued supply at higher levels. Momentum indicators are softening, with RSI drifting toward the 50 mark—suggesting fading bullish strength but not yet an oversold condition. As long as the index remains below the 61,100–61,700 resistance zone, downside risk persists toward immediate supports at 59,247 and 58,666. A decisive break below these levels could trigger deeper corrective moves, while sustained recovery above resistance would be required to revive upward momentum.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index ended at 28,126.35 under sustained pressure from NBFCs and financial heavyweights, with sharp stock-specific declines amplifying the overall weakness. The index continues to display a corrective structure with limited buying interest on dips, indicating cautious positioning by market participants. Negative breadth underscores the lack of broad participation, while price action suggests consolidation with a downward bias following recent declines. Immediate support is seen at 27,656 and 27,357, where some buying interest may emerge; however, a breakdown below this zone could accelerate the correction. On the upside, resistance is placed at 28,621 and 28,920, and the index needs to sustain above these levels to signal stabilization. Until then, rallies may remain short-lived and prone to selling pressure.

Sensex

The BSE SENSEX closed sharply lower at 82,626.76, reflecting intense selling across large-cap FMCG, IT, metals, and energy stocks, with extremely weak breadth highlighting broad market pessimism. The index remained under pressure throughout the session, indicating strong institutional selling and limited defensive buying despite a few positive movers. Technically, the benchmark has slipped below key short-term averages, reinforcing a bearish near-term outlook as momentum weakens. Immediate supports are placed at 81,256 and 80,384, which will be crucial to watch for signs of stabilization; a breach could open the door for a deeper correction. On the upside, resistance at 84,075 and 84,947 is likely to cap recovery attempts unless strong buying emerges, suggesting that the market may remain volatile with a negative bias in the short term.