Nifty 50 declined 146.65 points, or 0.57%, to settle at 25,807.20, while Sensex shed 558.72 points, or 0.66%, to close at 83,674.92.
The session was dominated by the “Anthropic Shock,” as fresh advancements in enterprise AI tools triggered structural growth concerns for traditional software exporters.
Consequently, Nifty IT plummeted 5.51%, with heavyweights like Tech Mahindra, Infosys, and TCS leading the laggards. Market breadth remained weak, reflecting a cautious risk-off approach.
The advance-decline ratio stood at approximately 2:3, with 1,675 gainers against 2,448 losers on the BSE. While Nifty Bank remained relatively resilient, ending nearly flat, broader indices underperformed as mid-cap and small-cap stocks witnessed profit-booking.
Two stock recommendations by MarketSmith India:
Buy: LG Balakrishnan & Bros Ltd.(current price: ₹2,007)
- Why it’s recommended: Strong presence in 2W/3W drivetrain segment, diversified OEM + aftermarket revenue mix, healthy return ratios (ROE/ROCE), consistent earnings growth track record, debt under control / improving balance sheet, export opportunity expansion, and beneficiary of premiumisation trend.
- Key metrics: P/E: 19.86, 52-week high: ₹2,048, volume: ₹24.33 crore
- Technical analysis: Consolidation-based breakout
- Risk factors: Auto industry cyclicality risk, raw material price volatility (steel) dependence on the 2W segment demand, EV transition impact on product relevance, margin pressure from OEM pricing power, and global slowdown affecting exports
- Buy: ₹1,995–2,015
- Target price: ₹2,280 in two to three months
- Stop loss: ₹1,880
Buy: Billionbrains Garage Ventures Ltd (current price: ₹179.50)
- Why it’s recommended: Scale-led growth in retail participation, product expansion, and cross-sell upside
- Key metrics: P/E:N/A, 52-week high: ₹194 volume: ₹694.51 crore
- Technical analysis: trendline breakout
- Risk factors: Market/volume cyclicality, Intense competitive landscape:
- Buy at: ₹178–181
- Target price: ₹208 in two to three months
- Stop loss: ₹167
Nifty 50 recap
Indian equities closed lower on 12 February, with Nifty 50 declining 146.65 points, or 0.57%, to settle at 25,807.20 after a volatile session. The index traded within a range of 25,752–25,907 and remained below its previous close of 25,953.85, reflecting persistent selling pressure throughout the afternoon.
Market breadth was distinctly weak, with 1,151 advances against 2,008 declines, underscoring broad-based profit booking. On the sectoral front, Nifty IT was the key laggard, sliding more than 5% amid heavy selling in frontline technology names.
Meanwhile, Nifty FMCG, Realty, and Oil & Gas also ended in the red. On the other hand, Financial Services provided relative support, with select banking and NBFC counters witnessing selective buying interest.
From a technical standpoint, price action over the past few sessions suggests a pullback within a broader medium-term uptrend, as the index continues to trade above its long-term rising trendline (black line), which remains intact and upward sloping. The RSI has rebounded from lower levels and is currently near the mid-50 zone (around 54), suggesting improving momentum without entering overbought territory. This indicates a neutral-to-positive bias, though conviction remains limited.
Meanwhile, the MACD has turned positive with the histogram expanding and the MACD line crossing above the signal line, signaling early signs of bullish momentum recovery after a corrective phase.
According to O’Neil’s methodology of market direction, the Indian equity market has transitioned from a Downtrend to a Rally Attempt, indicating an early improvement in the near-term market tone.
Nifty snapped its four-day winning streak, witnessing profit booking in the latest session, and is currently holding marginally above its 50-DMA, indicating a crucial near-term inflection point.
On the downside, 25,400–25,100 is likely to provide an immediate cushion, where incremental buying interest may emerge on declines. Conversely, 25,800–26,000 remains a formidable hurdle, reflecting evident supply at higher levels.
A sustained close above 26,000 would serve as an important technical trigger, potentially reviving bullish momentum and paving the way for an extended move toward 26,300–26,400 in the near term.
How Nifty Bank performed
Nifty Bank opened marginally positive at 60,786.15 and initially moved higher to register an intraday high of 60,864.40. However, after testing higher levels, the index witnessed mild profit booking and slipped to an intraday low of 60,597.65. It eventually settled at 60,739.75, down 5.60 points (-0.01%), reflecting a largely range-bound session with slight negative bias.
The inability to sustain above the intraday high suggests supply pressure near resistance zones. Despite the flat ending, the broader structure remains constructive as prices continue to trade above key short- and medium-term moving averages. The narrow range formation indicates consolidation near highs, often seen before a directional expansion. Overall, the session reflects digestion of recent gains rather than structural weakness.
On the momentum front, the RSI (14) is near 60.61, remaining above the neutral 50 mark, signalling underlying bullish momentum. The indicator is neither overbought nor oversold, suggesting room for further upside if buying interest revives. Meanwhile, the MACD remains in positive territory with the MACD line above the signal line, indicating sustained medium-term strength, though the histogram shows moderation in momentum. This setup typically reflects consolidation within an uptrend rather than a reversal. If RSI sustains above 55 and MACD holds positive, the momentum structure favours continuation on dips.
Technically, immediate support is placed around 60,000–59,800, followed by stronger support near 59,500, which aligns with short-term moving averages. A deeper cushion exists near 58,500, where the 100-DMA is positioned. On the upside, resistance is visible near 61,000, and a decisive breakout above this zone could open the path toward fresh record highs.
Considering stable banking sector fundamentals, improving credit growth data, and resilient asset quality trends, the index is likely to maintain a buy-on-dips approach. Unless it decisively breaks below 59,500, the broader bias remains positive with potential for gradual upside extension.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.