Market Brief: Domestic Resilience Amid Range-Bound Volatility The Indian equity markets continue to exhibit a range-bound character as February 2026 draws to a close. Technical indicators suggest a period of consolidation, with the **Relative Strength Index (RSI)** softening toward **48**, reflecting a mild bearish pressure in the immediate term. Market participants are currently navigating a high-volatility environment, with the **India VIX** hovering around **13.06 to 14.35**. While global cues remain mixed, domestic institutional investors (DIIs) have provided a crucial cushion, recently injecting over **5,032 crore** in a single session to offset persistent foreign portfolio investor (FPI) selling. Index Levels and Technical Floors The **Nifty 50** is currently oscillating near the **25,496** mark. Technical analysts have identified a crucial structural base at **25,380 – 25,350**, which aligns with the 200-day moving average. On the higher side, a significant hurdle persists at **25,650 – 25,700**. A decisive move above this resistance is required to trigger fresh momentum. The **BSE Sensex** remains steady near **82,248**, having seen a narrow trading range in recent sessions. Support for the blue-chip index is firmly established near the **81,970** level, while resistance is capped at **82,600**. Sectoral Focus: The Domestic Pivot Investment strategies are increasingly pivoting toward domestic-facing sectors that offer clearer demand visibility. **PSU Banks** continue to lead the charge, with the **Nifty PSU Bank Index** recording weekly gains of over **5.4%**. Strength in this sector is supported by stable credit growth and improving asset quality, highlighted by major players like **Canara Bank** raising **5,000 crore** via Tier-II bonds at a **7.24%** coupon. **Healthcare and Pharma** have emerged as strong defensive plays. The **Nifty Pharma** index has shown resilience, with key stocks like **Dr. Reddy’s** and **Aurobindo Pharma** gaining traction as investors seek earnings stability. **Automobiles and Capital Goods** remain in focus due to domestic infrastructure tailwinds. Despite component inflation—specifically a **55% to 64%** rise in mobile DRAM prices affecting tech-heavy segments—the broader industrial and auto sectors are benefiting from a projected **7.4%** real GDP growth rate for the **2025-26** fiscal year. Macroeconomic Indicators The broader economic backdrop remains supportive of long-term stability. Under the new **2024 base year** series, retail inflation (**CPI**) was recorded at **2.75%** for January, comfortably within the central bank's target band. The **Reserve Bank of India (RBI)** has maintained the repo rate at **5.25%**, signaling a neutral stance. Meanwhile, the Indian rupee has remained relatively flat, trading near **90.91** against the US dollar. Commodity markets are seeing localized action, with **MCX Gold** trading near **1,58,740 per 10 grams**, while **Brent Crude** has eased slightly to approximately **70.40 per barrel** on hopes of diplomatic progress in international talks.