20th 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 20th, 2025.

Key Points

1. Market News

• • • GIFT Nifty indicates a negative market opening.
    • Indian benchmark indices closed mixed on Wednesday.
      • IT & pharma sectors declined.
      • Real estate & metal sectors gained.
    • Asian shares fell, mirroring Wall Street’s slow movements.
    • S&P 500 reached its second consecutive all-time high.
    • Federal Reserve’s meeting minutes & Trump’s tariff proposals under investor focus.
    • US Treasury yields declined slightly.
    • Japanese Yen appreciated by over 4% year-to-date.
    • Crude oil steady amid supply concerns.
    • Gold prices remained near record levels due to geopolitical tensions.
    • .

2. Technical Analysis – Nifty 50 & Bank Nifty

Nifty-50

• Formed a bullish candle with an upper shadow (selling pressure at higher levels).
• Maintained higher highs-higher lows pattern but remains in a bearish trend.
• Trading below key moving averages, showing a negative bias.

Support Levels:

• 23,022
• 23,078
• 23,168

Resistance Levels:

• 22,843
• 22,787
• 22,697

Bank Nifty

• Rose by 1%, crossing 49,500.
• Formed a bullish engulfing pattern.
• Trading above 10-day and 20-day EMAs.
• Entered the upper Bollinger Band, indicating positive momentum.

Support Levels:

• 49,649
• 49,843
• 50,158

Resistance Levels:

• 49,019
• 48,825
• 48,510

3. Key Bullish Stocks to Watch

• Bharat Forge – Signed LOI with AM General for advanced artillery cannons.
• Mahindra Group – Partnered with Anduril Industries for autonomous defense systems.
• Patanjali Foods – Won tax dispute case of ₹186 crore.
• Tata Technologies & IREDA – Set to join F&O segment in March.
• Servotech Renewable – Partnered with Watt & Well SAS for EV charger components.
• Sundaram Clayton – Selling die-casting business at Hosur plant.
• BCL Industries – Subsidiary supplying 23,054 KL ethanol for ₹135 crore.
• Thomas Cook (India) – Signed agreement with SOTC & Korea Tourism Organization.
• Waaree Energies – Received 362.5 MWp solar module order.
• Mahindra & Mahindra – Developing autonomous maritime systems with Anduril.
• IRIS Business Services – Partnered with Goa Govt. to support MSMEs.
• India Glycols – Received ₹1,264 crore ethanol supply order from BPCL.
• RITES – Signed MoU for marine infrastructure consultancy.

Key Bearish Stocks to Watch

• One Mobikwik Systems – SSPL Securities sold 6 lakh shares at ₹322.33 each.
• Windlas Biotech – Samvitti Capital sold 1.15 lakh shares at ₹683.49 each.

4. Sector-Wise Performance (Top 5 Sectors Based on Last Week’s Performance)

• NIFTY INDIA DEFENCE – +4.20%
• NIFTY ALPHA50 – +2.80%
• NIFTY SMALLCAP250 MOM – +2.50%
• NIFTY MICROCAP250 – +2.40%
• NIFTY MIDSMALL FINAN SER – +2.20%

Volume Shockers (Stocks with 1.5x the Average Volume Last Week)

• IRFC – +20.10%
• Union Bank – +9.30%
• Zydus Lifesciences – +8.90%
• Godrej CP – +6.50%
• Dabur – +6.30%

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

Long Build-Up Stocks (Top 5 based on futures open interest change)

• Dr. Reddy’s (DRREDDY) – +7.40%
• Dabur (DABUR) – +7.40%
• Tata Consultancy Services (TCS) – +6.90%
• Tata Elxsi (TATAELXSI) – +6.20%
• Poonawalla Fincorp (POONAWALLA) – +6.20%

Short Build-Up Stocks (Top 5 based on futures open interest change)

• Bombay Stock Exchange (BSE)
• Torrent Power (TORNTPOWER)
• NHPC
• Central Depository Services (CDSL)
• Indraprastha Gas Ltd. (IGL)

6. FII & DII Activity (19th Feb 2025)

• Foreign Institutional Investors (FIIs): Net sellers of ₹1,881.30 Cr in cash segment.
• Domestic Institutional Investors (DIIs): Net buyers of ₹1,957.74 Cr in cash segment.

7. Breakout Pulse Stocks (Potential Uptrend with Favorable Volume & RSI Alignment)

• UPL – ₹650 (+3.05%)
• Medanta – ₹1149 (+2.50%)

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.