📊 Stock Market Outlook – 16 February 2026

Cautious Start Expected | IT Weakness Continues | Sector Rotation in Play 🌍 Global Market Overview Global markets are showing mixed signals. US Markets ended flat on Friday after softer-than-expected inflation data (2.4% vs 2.5% expected) increased hopes of a potential rate cut. US markets remain closed today due to Presidents’ Day. Asian markets are mixed; China, Taiwan and South Korea remain shut. Gold prices surged above $5000/oz, while crude trades flat near $68/barrel. 🇮🇳 Indian Market Outlook Indian markets are expected to open flat to slightly lower following global cues. In the previous session: Nifty fell 1.3% to close at 25,471 Sensex dropped 1,048 points to 82,626 Broader markets (mid & small caps) corrected up to 2% FIIs sold over ₹7,000 crore in a single session Persistent selling in IT stocks and valuation concerns around AI-linked companies continue to pressure sentiment. However, positive triggers include: Strong Q3 earnings Cooling domestic inflation Hopes of US–India trade progress Improving valuations in select pockets 📌 Index Technical Levels Nifty Support: 25,300 → 25,200 Resistance: 25,700 → 25,850 Broader Range: 25,000 – 26,000 Bank Nifty Support: 60,000 → 59,500 Resistance: 60,250 → 60,500 Range: 59,500 – 60,500 Put/Call Ratio has declined, indicating cautious undertone. 🔎 Sector-Wise Action Plan 🏦 Banking & Financials – Selective Positive Strong PSU bank earnings Rate cut hopes supporting sentiment Gold loan expansion theme active Bias: Stock-specific buying on dips 💻 IT Sector – Under Pressure Heavy correction (~15% in a week) Global tech index weakness AI disruption concerns Bias: Short-term cautious | Long-term opportunity zone ❄️ Air Conditioner & Cooling Stocks – Seasonal Play Summer demand expectations building Positive momentum likely ahead of peak season Bias: Positive 🧵 Textiles – Policy Tailwind Commerce Minister hints at zero duty benefits if sourcing raw material from US Bias: Positive momentum expected 🏭 Infrastructure & Capital Goods – Earnings Support Strong order inflows Capex visibility improving Bias: Positive on strong balance sheet companies ⚡ Renewable & Energy – Structural Growth Solar + BESS project awards Capacity expansions announced AI & industrial demand boost theme Bias: Long-term positive 🧪 Pharma – Strong Earnings Momentum Multiple companies reported EBITDA beat USFDA approvals received Export pipeline improving Bias: Positive 📦 IPO Watch Recent IPO subscribed nearly 3x. Listing performance will depend on: Grey market premium Valuation comfort Broader market sentiment 💰 Institutional Activity FIIs: Net Sellers ₹7,335 crore DIIs: Net Buyers ₹5,554 crore FII long-short ratio declining → Caution remains. 📊 Derivatives Snapshot Maximum Call OI: 25,600 Maximum Put OI: 25,500 Immediate Trading Range: 25,300 – 25,700 🧠 Strategy for Traders & Investors ✔ Avoid aggressive long positions near resistance ✔ Buy quality stocks on dips in strong sectors ✔ Watch FII flows closely ✔ IT may offer long-term accumulation opportunity ✔ Stay selective in midcaps ⚠️ Risk Factors This Week US Fed Meeting Minutes US GDP & Consumption Data FII Selling Trend Global IT stock movement 📝 Final View Market remains in a short-term corrective phase but strong earnings and cooling inflation provide medium-term comfort. Traders should remain cautious while investors can gradually accumulate quality stocks in strong sectors. 📌 Disclaimer We are not SEBI registered advisors. Investments in securities markets are subject to market risks. Please consult your financial advisor before making any investment decision.