18th February 2025 Pre-Market Analysis

Introduction

This report provides an overview of the recent market performance, key economic indicators, and notable stocks in both bullish and bearish situations as of February 18th, 2025.

Key Points

1. Market News

• • • GIFT Nifty trading flat, signaling a muted start.
    • Indian equity indices ended their longest losing streak in 2 years, helped by HDFC Bank & Reliance Industries.
    • Pharma & Metal stocks rallied, while IT & Auto sectors remained under pressure.
    • Asian markets await Reserve Bank of Australia’s policy decision.
    • Europe: Defense stocks led a rally.
    • US markets were closed on Monday (Presidents Day).
    • 10-year Treasury yield surged 56 basis points to 4.5%, while the 2-year yield remained unchanged.
    • Dollar Index showed strength against major currencies.
    • Most Asian currencies traded lower:
      • Japanese Yen gained the most YTD, followed by South Korean Won, Thai Baht, and Singapore Dollar.
    • Commodities Market:
      • West Texas Intermediate Crude – Up 0.8% to $71.21 per barrel.
      • Brent Crude – Up 0.6% to $75 per barrel.
      • Gold Prices holding steady due to US trade & foreign-policy concerns.
      • Indian Rupee weakened by 2 paise, closing at 86.85 against USD.
    • .

2. Technical Analysis

Nifty-50

• Formed a bullish candlestick pattern but continued lower high-lower low formation.
• RSI at 39, MACD shows negative crossover below zero line.
• Support Levels: 22,791 | 22,733 | 22,638
• Resistance Levels: 22,981 | 23,040 | 23,135

Bank Nifty

• Formed bullish candlestick pattern with lower shadow, indicating positivity.
• Index up by 160 points, but continued lower high-lower low formation.
• Support Levels: 48,731 | 48,544 | 48,241
• Resistance Levels: 49,338 | 49,525 | 49,828

Open Interest Analysis

• High Call OI → Potential Resistance.
• High Put OI → Potential Support.
• Increase in Call OI → Bearish Sentiment.
• Decrease in Call OI → Bullish Sentiment.
• Increase in Put OI → Bullish Sentiment.
• Decrease in Put OI → Bearish Sentiment.

3. Key Bullish Stocks to Watch

• SBI Cards – Declared interim dividend of ₹2.50/share; appointed Salila Pande as MD & CEO (April 1, 2025).
• Anant Raj – Signed agreement with CSC Data Services for rack rental & cloud services.
• Uno Minda – JV with Suzhou Inovance Automotive to develop high-voltage EV powertrains.
• Deepak Fertilisers – Increased stake in Platinum Blasting Services (65% to 85%) for ₹64.1 Cr.
• KIMS – 7-year Operations & Management agreement with UAIMS Hospital (Sangli).
• Paytm (One 97 Communications) – Partnered with SBI Mutual Fund to launch JanNivesh SIP @ ₹250.
• Zomato – Launched Nugget (AI-native, no-code customer support solution).
• LIC – Launched ‘Smart Pension’, available from Feb 18.
• Thomas Cook – Expanded collaboration with Sabah Tourism (Malaysia).
• Choice Equity Broking – Acquired Arete Capital Services (₹5,151 Cr AUM).
• DCX Systems – Received ₹24.51 Cr order for cable & wire harness assemblies.
• Lloyds Metals & Energy – Acquiring 79.82% stake in Thriveni Earthmovers (₹70 Cr).

Key Bearish Stocks to Watch

• Suraksha Diagnostic – CFO Amit Saraf resigned (Feb 15).
• Matrimony – CFO Sushanth S Pai resigned.
• Vikas Lifecare – Named in SEBI Show Cause Notice for trading violations.
• Ajax Engineering – Morgan Stanley IFSC Fund sold 7.58 lakh shares @ ₹588.74/share.
• Nazara Technologies – Investor M Prasad & Co. sold 5 lakh shares @ ₹920.05/share.
• Gensol Engineering – Anmol Singh Jaggi sold 2.15 lakh shares (₹533.05/share).
• Stock in F&O Ban: Deepak Nitrite, Manappuram Finance.
• Stocks removed from F&O ban: None.

4. Sector-Wise Analysis & Volume Shockers

Top 5 Sector Indices in NSE (Past Week’s Performance)

• Nifty MidSmall Health – +1.70%
• Nifty Healthcare Index – +1.30%
• Nifty Pharma – +1.30%
• Nifty Midcap Liquid15 – +1.20%
• Nifty CPSE – +1.00%

Top 5 Stocks from Nifty Next 50 with High Volume

• Samvardhana Mother – +50.20%
• JSW Energy – +15.10%
• Avenue Supermarts – +14.70%
• LTIMindtree – +10.60%
• [Stock Not Listed] – +9.50%

5. Long Build-Up & Short Build-Up Stocks

Long Build-Up Stocks

• VBL – +13.10%
• JSW Energy – +11.90%
• PolicyBazaar – +11.30%
• Siemens – +8.00%
• M&M – +7.00%

Short Build-Up Stocks

• Manappuram
• Chambal Fert
• Bajaj Finserv
• Zydus Life
• Max Health

6. FII & DII Activity

• FIIs (Foreign Institutional Investors): Net sellers (-₹3,937.83 Cr, Feb 17, 2025).
• DIIs (Domestic Institutional Investors): Net buyers (+₹4,759.77 Cr, Feb 17, 2025).

7. Breakout Pulse Stocks (Nifty 500)

• Bajaj Finserv – +2.91%
• Chambal Fert – +2.77%
• UPL – +2.24%

Conclusion

The market is set for a cautious start with mixed signals from international markets and local economic indicators. Investors should continue to monitor key stocks and market indices for potential movements in both bullish and bearish directions, keeping an eye on upcoming economic data and geopolitical events.