Markets Enter a Crucial Week Amid Global Cues, IT Weakness, and FII Activity
Indian stock markets are expected to remain volatile in the week starting February 17, 2026, as investors track global developments, sector-specific trends, and foreign fund flows.
The Nifty 50 slipped below the 25,500 mark in recent sessions, with weakness in metal and IT stocks dragging the benchmark lower. Analysts now expect the index to move in a range-bound zone, with key support near 25,100–25,300 and resistance around 25,700–26,000.
At the same time, global market signals, AI-related concerns in the IT sector, and changes in financial regulations are likely to influence investor sentiment this week.
Where the Nifty Stands Right Now
The Nifty has struggled to hold levels above 26,000, leading to cautious trading across sectors. Technical analysts say the index could remain in a consolidation phase between 25,300 and 25,800 in the near term.
If the index falls below 25,300, the next support zone may appear near 25,200, where buying interest could return. On the upside, a move above 26,000 could improve market sentiment and trigger fresh buying.
Key Triggers to Watch This Week
1. Global Economic Data and Market Trends
Global cues will play a major role in shaping domestic market sentiment. Investors are closely watching U.S. inflation data, bond yields, and global equity trends, which could affect foreign investment flows into India.
Recent weakness in major U.S. technology stocks and volatility in global indices have already influenced Indian markets.
2. IT Sector Volatility Due to AI Concerns
The IT sector remains under pressure due to fears that artificial intelligence could disrupt traditional outsourcing models.
About $50 billion in market value was wiped out from Indian IT stocks in February alone, with the Nifty IT index falling sharply. The index has already dropped more than 13% in 2026, making it one of the worst-performing sectors.
Since IT stocks carry significant weight in the Nifty, their performance will remain a key factor for the overall index.
3. RBI Regulatory Changes and Financial Sector Impact
New lending rules announced by the Reserve Bank of India have caused declines in stock exchange and brokerage companies. Some shares fell by up to 9.9% after the announcement, reflecting concerns about earnings impact.
These changes may keep financial stocks in focus during the week.
4. Foreign Investor Flows
Foreign Portfolio Investors (FPIs) have turned net buyers in early February, investing around ₹19,675 crore after months of heavy selling. This reversal in flows could provide support to the market if it continues.
However, analysts say the overall trend still shows caution, and sustained inflows will be needed to drive a strong rally.
5. Corporate Earnings and Sector-Specific Moves
Earnings updates and sector-specific developments will also influence trading. Recent weak results from some large companies and sector-level corrections have kept investors cautious.
Small-cap and mid-cap stocks have also underperformed, indicating broader market weakness.
Top Nifty Picks and Sectors to Watch
Market experts are advising investors to focus on stock-specific opportunities rather than broad index moves.
Banking and Financial Stocks
Banking stocks have shown relative strength compared to other sectors. The Bank Nifty index has remained above the 60,000 level, reflecting steady confidence in frontline banks.
Strong earnings and loan growth outlook have supported select banking stocks. These stocks could continue to attract investor interest if the broader market stabilises.
Select Industrial and Capital Goods Stocks
Global trends show strength in industrial and infrastructure-linked sectors. Domestic infrastructure spending and government projects could support this segment.
Stocks in engineering, construction, and capital goods may remain in focus.
Energy and Select PSU Stocks
Energy stocks and some public sector companies have shown resilience despite broader market volatility. Stable earnings and dividend visibility make them attractive in uncertain markets.
Select Mid-Cap Breakout Stocks
Technical analysts have identified some stocks showing bullish momentum after chart breakouts. Certain mid-cap stocks have seen improving indicators such as RSI and MACD, signalling stronger price momentum.
Investors are advised to focus on stocks with strong technical patterns rather than chasing weak sectors.
Key Support and Resistance Levels
Important Nifty levels for the week remain clearly defined. Major support is seen between 25,100 and 25,300, while intermediate support is near 25,400. On the upside, the resistance zone stands between 25,700 and 26,000.
A decisive move beyond these levels could set the next short-term trend for the index.
Market Strategy for Investors
Analysts suggest a cautious approach as the market enters a consolidation phase.
Investors are advised to focus on strong sectors like banking and industrials, avoid overexposure to weak sectors such as IT in the short term, and buy quality stocks on dips rather than chasing rallies.
Keeping an eye on global cues and FII flows will also be important, as stock-specific moves are likely to dominate the trend in the near term.
Risks That Could Affect the Market
Several factors could increase volatility this week. Fresh global economic data or geopolitical developments could shift investor sentiment quickly.
Continued selling in the IT sector, regulatory changes affecting financial stocks, and weak corporate earnings could also weigh on the market.
Any sharp movement in U.S. markets or bond yields may directly impact investor confidence in India.
Short-Term Outlook
Market experts expect the Nifty to remain volatile but range-bound in the near term.
If global conditions stabilise and foreign inflows continue, the index could attempt another move toward 26,000. However, a fall below 25,300 may trigger deeper corrections.
Bottom Line
The stock market outlook for this week remains cautious, with the Nifty expected to trade between 25,100 and 26,000.
Key triggers include global economic data, IT sector performance, RBI policy changes, FII flows, and corporate earnings.
Banking, industrial, and energy stocks may outperform, while IT stocks could remain under pressure in the short term.
For investors, the strategy remains clear: stay selective, focus on quality stocks, and avoid aggressive bets in a volatile market.
Financial Disclaimer: Markets and investment-related products are subject to risks and fluctuations. Readers should conduct their own research and consider consulting a qualified financial advisor before making any investment decisions.
Last Updated on: Monday, February 16, 2026 12:28 pm by Digital Herald Team | Published by: Digital Herald Team on Monday, February 16, 2026 12:28 pm | News Categories: Business