Trade Setup for February 13: Nifty holds above 22,786, has good chance of recovery: Experts

The Indian stock market saw high volatility on Wednesday, with the Nifty dropping sharply in the morning but staging a strong recovery later in the day. Despite closing slightly lower at 23,045 (down 26 points or 0.12%), the index showed resilience, supported mainly by financial stocks.

Key Market Movements

Early Sell-off, Strong Rebound: Nifty fell over 250 points in the first hour but bounced back 350 points from its intraday low of 22,798.

Sector Performance: Financials, PSU banks, and metals showed strength, while auto, oil & gas, and realty stocks faced selling pressure.

Mid & Small Caps: Despite early losses, midcap and smallcap indices rebounded by 2.8% and 3.5%, respectively, though they still ended slightly in the red.

What’s Next for Nifty?

Technical experts suggest that as long as Nifty holds above 22,786, it has a good chance of recovering towards 23,500–23,600 in the near term. Immediate resistance is at 23,200, with stronger resistance around 23,500. A break above 23,150 could trigger further gains towards 23,320–23,400.

Bank Nifty Outlook

The Bank Nifty closed at 49,479.45, up 0.15%. It is holding above a key Fibonacci retracement level at 49,270, indicating support. As long as it stays above 48,730, an upward move towards 50,150 is possible.

Stocks to Watch

Kotak Mahindra Bank: RBI has lifted restrictions on the bank’s operations, allowing full resumption of business.

ICICI Bank: Joint venture partner Prudential PLC is considering listing ICICI Prudential Asset Management.

Reliance Industries: Set up a new arm in Singapore for R&D in sustainable energy solutions.

Bharat Forge: Signed an MoU with VEDA Aeronautics to develop UAVs and high-speed aerial weapon systems.

Tata Power Renewable: Partnered with ONGC to explore battery energy storage opportunities.

Vakrangee: RBI extended authorization to operate White Label ATMs in India until March 31, 2026.

With market sentiment remaining cautious, traders should watch for a decisive move above 23,200 for confirmation of a short-term rally. Keep an eye on global cues and FII activity for further direction.