Market Brief: Indian Equities Extend Gains Indian benchmark indices concluded Tuesday, February 17, 2026, with a second consecutive session of growth. The **Nifty 50** settled at **25,725.40**, gaining **42.65 points**, while the **S&P BSE Sensex** rose by **173.81 points** to close at **83,450.96**. The trading day began with initial weakness as benchmarks dropped over **100 points** in early hours. However, a sharp mid-session recovery, supported by heavyweights like **ITC (up 2.34%)** and **Infosys (up 1.88%)**, turned the tide. Technical Resistance and Support The Nifty continues to face significant hurdles near its **50-day moving average (50DMA)**, currently positioned around **25,750 to 25,800**. While the index reached an intraday high of **25,764**, it struggled to maintain levels above this technical ceiling. Support for the Nifty has shifted higher to the **25,570 – 25,600** zone. Technical analysts suggest that as long as the index holds above **25,400**, the broader structure remains positive for a "buy-on-dips" strategy. Volatility and Institutional Flows Market sentiment was bolstered by a sharp decline in the **India VIX**, which dropped **4.93%** to settle at **12.67**. This easing of volatility indicates a reduction in near-term fear and supports rangebound upward movement. Institutional activity remains a tug-of-war. Domestic Institutional Investors (DIIs) acted as primary stabilizers with net purchases of **1,666.98 crore**, whereas Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth **972.13 crore**. Sectoral Performance and Macro Outlook The rally was primarily driven by the **PSU Bank**, **IT**, and **FMCG** sectors. Financial services also saw selective interest, though **Metal** and **Realty** indices faced selling pressure, slipping by **1%** and **0.3%** respectively. Economic data provided a stable backdrop. India’s retail inflation for January 2026 was recorded at **2.75%** under the new **2024 base year** series. This figure remains well within the Reserve Bank of India’s tolerance band, reinforcing expectations of a status quo on interest rates in the near term. Trade data for January showed exports reaching **$80.45 billion**, a **13.17%** year-on-year increase. However, imports rose faster at **18.76%**, totaling **$90.83 billion**, which widened the merchandise trade gap. Looking Ahead Market participants are focusing on the **25,800** level for the Nifty. A decisive breakout above this resistance could trigger short-covering, potentially pushing the index toward **26,000**. Conversely, failure to breach this level may lead to consolidation within the **25,500 – 25,800** range. Global factors, including the **$68.37** per barrel price for Brent crude and stable US bond yields, are expected to influence the opening of the next session.