Market Analysis from HDFC Securities
by Mr. Nandish Shah – Deputy Vice President, HDFC Securities
🕗 Last Update: 16 February 2026, 8.00 PM
Analysis for 17 February 2026
Nifty Rebounds Sharply; Broad-Based Buying Lifts Index Above Key Averages
After witnessing two sessions of healthy correction, the Nifty staged a strong comeback, advancing 211 points to close at 25,682. Despite opening 48 points lower, the index reversed swiftly from early weakness and rallied more than 300 points from the intraday low, eventually settling near the day’s high. NSE cash market volumes, however, declined nearly 28% compared to the previous session, indicating selective participation.
Among index heavyweights, Power Grid, Coal India and HDFC Bank emerged as the top contributors to the upside. On the flip side, Tech Mahindra, Bajaj Finance and Maruti Auto remained under pressure and ended the session among the key laggards.
The recovery was largely broad-based, with most sectoral indices closing in positive territory, barring Nifty Media and Auto. Realty, PSU Banks and Bank Nifty outperformed the broader market, reflecting renewed buying interest in rate-sensitive and value-oriented segments.
In the broader market, momentum remained relatively muted compared to the benchmark. The Nifty Midcap 100 gained 0.48%, while the Smallcap 100 edged higher by 0.11%. Market breadth stayed weak, with the advance-decline ratio at 0.72, suggesting that profit-booking continues in pockets of the mid- and small-cap space despite the index rebound.
Currency markets painted a slightly different picture, as the Indian rupee slipped marginally even while several Asian currencies strengthened. The move followed an upside surprise in domestic inflation data, keeping traders cautious. With global cues limited, market participants are now turning their attention to upcoming trade balance figures for fresh direction.
From a technical standpoint, Nifty has formed a bullish “Engulfing” candlestick pattern on the daily chart — an early indication of a possible trend reversal. The index has reclaimed its 20-day and 50-day exponential moving averages, improving short-term sentiment. Immediate support now shifts to 25,372, while a decisive close above 25,752 would neutralise the recent bearish gap and potentially open the path toward the 26,000 resistance zone.
