The Nifty 50 index, which extended its rally for a fourth consecutive session on Wednesday, opened lower on Thursday. As the session progressed, selling pressure intensified, driven by a sharp decline in the IT index, which carries roughly 11% weight in the benchmark. On an intraday basis, the index slipped below the 25,800 mark and also fell under the 50 DMA. However, by the close, it managed to reclaim both 25,800 and the 50 DMA. The index eventually ended the day down 146.65 points, or 0.57%, at 25,897.20.
IT stocks were the key drag, with heavyweights Infosys and TCS together pulling the index down by about 102 points. Notably, TCS’s market capitalisation slipped below the ₹10 lakh crore mark, as concerns around AI disruption, slowing tech spending, and a cautious outlook rattled investor sentiment.
Technically, the index formed an open equals high candle on Thursday, indicating that the opening level turned out to be the high of the day. It also registered a lower high and a lower low compared with the prior session. This bearish candle, with a lower high and lower low, acts as confirmation of Wednesday’s hanging man-like formation. In addition, the index closed below the two-day low on higher volumes. As a result, the index recorded a fresh distribution day.
The index is now trading near a confluence of support, defined by the opening upside gap area of February 9 (25,704 to 25,781) and the 50 DMA (25,782). On Friday, February 13, the 25,700 to 25,782 zone is likely to act as the immediate support. If the index fails to hold this area, selling pressure could extend, with the next key support placed at the rising 20 DMA, currently at 25,479. On the upside, for bulls to regain strength, the index needs to move above Thursday’s open-equals-high level at 25,907. Sustaining above this level could lead to a retest of 26,000.
The 14-period daily RSI failed to close above 60 and slipped below 55. The MACD histogram also indicates fading momentum. The Mansfield Relative Strength line is now decisively below its average, signalling underperformance. A declining ADX line further points to weakening trend strength. Taken together, these signals reflect weakening momentum alongside bearish price action. Going forward, the focus remains on the 25,700 to 25,782 support zone. A breakdown below this area could amplify the decline, while for bulls to regain control, sustaining above 25,907 remains crucial.
Overall, market participants should closely monitor the 25,700 to 25,782 support band, as it could prove to be a make-or-break zone for the Nifty 50 in the short term.
Disclaimer :
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited
This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading