Stock Market Update Today, Feb 13: Nifty Near 26K: PSU Banks Lead as IT Drags, Institutions Stay Supportive

Market Outlook:
The markets continued to trade in a narrow range, with the benchmark indices consolidating near key resistance levels. Despite intraday volatility, buying interest near immediate support zones indicates that the broader structure remains constructive. The undertone remains positive as long as critical support levels are defended. However, a decisive breakout above resistance will be required to trigger fresh momentum. In the near term, markets are likely to remain stock-specific, driven by earnings and global cues.

FII and DII Activity:
FIIs showed selective participation in the cash segment, while DIIs continued to provide steady support. Persistent domestic inflows are acting as a cushion against global uncertainties and intermittent volatility. The overall institutional flow trend suggests confidence in domestic fundamentals, although FII positioning in derivatives indicates a cautious approach at higher levels.

Sector Activity:
Sectoral rotation was clearly visible during the session. PSU Banks, Auto, and select Pharma stocks outperformed, reflecting improving sentiment and earnings support. On the other hand, IT stocks witnessed pressure amid global technology weakness. Broader markets displayed resilience, with Midcap and Smallcap indices outperforming the benchmarks, highlighting sustained risk appetite and stock-specific action.

Long, Short, Long Unwinding & Short Covering:
Derivative data indicates mixed positioning. Fresh long buildup was seen in select banking, power, and consumption stocks, suggesting bullish expectations. Short buildup emerged in certain technology and infrastructure counters, reflecting cautious sentiment in those pockets. Long unwinding was observed in stocks that had recently rallied sharply, signaling profit booking at higher levels. Meanwhile, short covering in select metal and financial counters suggests improving near-term sentiment and potential for tactical upside.

Top 5 News Highlights:

1. Strong quarterly earnings from select auto and banking companies supported sectoral momentum.
2. Global markets remained cautious ahead of key US inflation data.
3. Crude oil prices remained stable, supporting energy and OMC sentiment.
4. Government policy developments around infrastructure spending boosted capital goods stocks.
5. Continued optimism around India’s medium-term GDP growth outlook reinforced investor confidence.

Overall, the market structure remains stable with institutional support and sector rotation driving opportunities. Traders should monitor key resistance and support levels closely for directional cues.