19th 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 19th, 2025.

Key Points

1. Market News

• • • GIFT Nifty trading flat – Suggests a muted start to the day.
    • India’s equity indices recover after breaking a two-year losing streak.
    • Sectors performing well: Pharmaceuticals & Metals.
    • Sectors under pressure: IT & Auto.
    • Asian markets: Mixed; awaiting Reserve Bank of Australia’s policy decision.
    • Europe: Defense-related stocks leading a rally.
    • US Markets: Closed on Monday (Presidents Day).
    • US 10-year Treasury Yield: Up 56 basis points (4.5%).
    • Dollar Index: Strengthening.
    • Asian Currencies: Mostly weaker, except for the Japanese Yen, South Korean Won, Thai Baht, and Singapore Dollar.
    • Commodities:
      • WTI Crude: +0.8% ($71.21 per barrel)
      • Brent Crude: +0.6% (~$75 per barrel)
      • Gold: Holding steady
    • Indian Rupee: Slightly weaker (-2 paise), closing at 86.85 per USD.
    • .

2. Technical Analysis

Nifty-50

• Candlestick Pattern: Dragonfly Doji (potential bullish reversal).
• Indicators:
  • Long lower shadow = buying pressure at lower levels.
  • Below all key moving averages = weak market structure.
  • Lower Bollinger Band = continued bearish momentum.
• Key Resistance Levels: 22,986 | 23,031 | 23,104
• Key Support Levels: 22,840 | 22,795 | 22,722

Nifty Bank

• Candlestick Pattern: Bearish (upper & lower shadows indicate buying interest at lower levels, selling at higher levels).
• Indicators:
  • Below all key moving averages = weak structure.
  • Lower Bollinger Band = continued downside risk.
• Key Resistance Levels: 49,273 | 49,394 | 49,591
• Key Support Levels: 48,881 | 48,759 | 48,563

Open Interest (OI) Insights

• High Call OI = Resistance Level
• High Put OI = Support Level
• Increasing Call OI = Bearish Sentiment
• Decreasing Call OI = Bullish Sentiment
• Increasing Put OI = Bullish Sentiment
• Decreasing Put OI = Bearish Sentiment

3. Key Bullish Stocks to Watch

• L&T – Acquires remaining 26% stake in L&T Special Steels.
• Concor – Awards ₹689.76 crore order to Braithwaite & Co for 30 BLSS Rakes.
• RVNL – Gets ₹554 crore LoA from Rail Infra Development Company, Karnataka.
• Mahindra Lifespace – Partners with Livingstone Infra for ₹1,650 crore project.
• Transformers & Rectifiers – ₹166.5 crore order from Hyosung T&D India.
• Infosys – Partners with Lufthansa Group for a Global Capability Centre in Bengaluru.
• Ireda – Subsidiary receives finance business license at GIFT City.
• Puravankara – Acquires 37.9 lakh shares of Sobha Puravankara Aviation (Stake rises to 89.45% from 49.95%).
• Nazara Tech – Acquires 22% stake in Datawrkz Business Solutions (Total stake now 55%).
• Lemon Tree – Signed license agreement for a 46-room hotel in Madhya Pradesh.
• Tata Steel – Gets approval for Electric Arc Furnace in Port Talbot.
• Cipla – Invests ZAR 900 million in Cipla Medpro South Africa.
• RBM Infracon – Gets ₹7.22 crore order from Reliance Industries for mechanical works.
• Hexaware Tech – IPO issue price ₹708, oversubscribed 2.66 times.

Key Bearish Stocks to Watch

• Aurobindo Pharma – US FDA issues 5 observations after Parawada unit inspection.
• Piramal Pharma – US FDA issues Form 483 with 6 observations for Turbhe facility.
• Punjab National Bank – Reports ₹271 crore borrowal fraud in Gupta Power Infra’s NPA account.
• Capacite Infraprojects – Capri Global Holdings sells 4.5 lakh shares at ₹304.73.
• Stock in F&O Ban: Manappuram Finance.
• Stock Removed from F&O Ban: Deepak Nitrite.

4. Sector-wise Analysis

Top Performing NSE Sector Indices (Past Week)

• NIFTY Financial Services (+0.80%)
• NIFTY Metal (+0.50%)
• NIFTY Services Sector (+0.10%)

Volume Shockers (Stocks with Volume 1.5x Higher than Last Week’s Average)

• ABB (+14.10%)
• PIDILITE INDUSTRIES (+7.80%)
• BOSCH (+7.10%)
• Another stock (+6.10%)
• Another stock (+5.60%)

5. Long & Short Build-Up Stocks

Long Build-Up Stocks (Increase in Open Interest)

• ABB (+22.30%)
• MCX (+12.60%)
• BATAINDIA (+12.40%)
• LTF (+10.60%)
• AUBANK (+9.90%)

Short Build-Up Stocks (Decrease in Open Interest)

• BERGEPAINT
• PHOENIXLTD
• ABBOTINDIA
• NTPC
• JUBLFOOD

6. Foreign Institutional Investors (FII) & Domestic Institutional Investors (DII) Activity

• FIIs: Net Sellers ₹4,786.56 crore (18th Feb 2025)
• DIIs: Net Buyers ₹3,072.19 crore (18th Feb 2025)

7. Breakout Pulse Stocks

(Stocks showing 2-5% uptrend with high volume, RSI balance, and moving average alignment)

• SUNDARMFIN – ₹4700 (+3.06%)

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.