_Morning Snippet :- 12th February 2025_ *Index Observation* After failing to hold above its support of 23400 on Monday, selling pressure mounted on the index yesterday clubbed with BSE Sensex weekly expiry allowing the fuel to the fire. Nifty has closed in red for the 5th consecutive session for the first instance so far in CY2025. A retest of the recent low near 22800 is likely to be scaled down on charts wherein it meets the old 5 year trendline on weekly/monthly charts. Any rise above 23200 is likely to get sold into while resistance is likely to get played out at this week's high of 23570. Bank Nifty has been facing profit taking after completing its initial target of 50500 earlier this month. Last 3 consecutive closing in red on the index has allowed the fresh breakout from a 4 weeks congestion zone to stand negated for now on the index. A range of 48800 – 49800 now stands developed on the index for this week. While any breakout and closing on either side of this range can allow a further 1000 pt move in similar direction. BSE Sensex ended over a 1000 pt lower after ending below its support of 77400 on Monday. Similar to Nifty charts get open for retest of its recent lows on January 2025 reading near 75300 to be retested while rise near 76700 is likely to get sold into with resistance remaining near Monday's high of 77850. Nifty's weekly expiry is scheduled for tomorrow. *Interesting Observation* Over the past five years, the Nifty 500 to China 300 Index ratio has maintained a strong uptrend, consistently respecting a well-defined rising trendline. This indicates that Indian equities have significantly outperformed Chinese equities during this period. However, the trendline is now on the verge of breaking down, signaling a potential shift in relative strength. A confirmed breakdown on a weekly closing basis would suggest that the long-standing dominance of Indian stocks over Chinese equities may be weakening. In late 2024, the Nifty had already broken a similar trendline, leading to underperformance against its developed market counterpart, the S&P 500. Since then, while U.S. markets have held on to their gains, the Indian market has underperformed by over 10%. With the ratio now breaking below trendline support, the Nifty is likely to underperform its emerging market counterparts as well. Factors such as a depreciating rupee, foreign institutional investor (FII) outflows, and tariff concerns have contributed to this underperformance. *DERIVATIVES* *Index IV* *NIFTY:* IV : 12.56 IVP : 73.6 IVR : 46.12 *BANKNIFTY:* IV : 14.7 IVP : 72.4 IVR : 35.3 *Trade Setup* Activity in Cash Market FII Cash: -4486.41 Crs. DII Cash: 4001.89 Crs. *WTD* FII: -6950.13 Crs. DII: 5517.41 Crs. *MTD* FII: -17129.53 Crs. DII: 12791.46 Crs. *F&O CUES* FIIs stance on index futures were bearish in the previous session. They have added 10K short contracts. FIIs net position on index futures now stand at 184K short contracts. On the option front, 22500 strike will continue to act as support as this strike has significant put open interest. On the upside, 23500 strike has significant call open interest and therefore will act as resistance. *UPCOMING CORPORATE EVENTS* *Date: 12-02-2025* ASHOKLEY: Financial Results BHARATFORG: Financial Results CROMPTON: Financial Results *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 1 New 52 Week Lows: 5 *Mid Cap:* New 52 Week Highs: 0 New 52 Week Lows: 24 *Small Cap:* New 52 Week Highs: 0 New 52 Week Lows: 38 *NIFTY500:* New 52 Week Highs: 1 New 52 Week Lows: 67