_Morning Snippet :- 13 February 2025_ *Index Observation* Nifty has once again taken support from its previous month’s support range of 22650 – 22800 where the index met its 5 year trendline providing the needed support. After ending for 6 consecutive days in red, the index has now closed above its previous day’s low indicating that this legs selling pressure might ease for the short term. This ongoing bounce can take the index for a ride to 23300 initially with support seen at 22870 and any dips below 22980 can be looked to trade short term long positions. Bank Nifty has been facing profit taking after completing its initial target of 50500 earlier this month. Index has ended in green post it’s 3 day selling streak. A range of 48800 – 49800 continues to hold 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 almost traded near to its previous month low of 75300 odd after breaking below support of 77400 earlier this week. Visually daily charts are depicting a double bottom formation on charts of SENSEX however this is indeed a higher low formation suggesting presence of buyers below 75400 odd which was its previous reversal zone as well. Given the price action of closing above its previous day's low and momentum on hourly charts, a bounce initially for 76200+ can unfold on BSE Sensex. Nifty's weekly expiry is scheduled for today while a weekly closing on charts is due tomorrow. *Interesting Observation* *NIFTY MIDCAP 100 & NSE 500 - APPROACHING A CHANGE IN TREND* The current correction in the Nifty Midcap 100 stands at 19% vs median bull market correction of 27% while the NSE 500 has declined by around 16% vs median bull market correction of 20%. *Nifty Midcap 100* charts are mirroring it with 2021 - 2022 correction. - After 18 months of rally from 2020-21, correction started in Oct 2022. Current correction started at Sep 2024 also started after 18 month rally. - 2021-22 correction stayed for 6 months while top to bottom took 9 months. - For the short term - currently triple divergence on RSI is under formation. - We are in the 6th month of correction while a new high may not be seen until Sep/Oct 2025 as per history seen on charts, but risk reward from here appears to be favorable. *Our outlook has turned positive based on chart patterns, and we recommend accumulating small-cap and mid-cap stocks. A further downside of around 3% from yesterday’s panic low is possible, but the target levels are*: • Nifty Midcap 100: 53,000 / 59,000 • NiftyMidSE Index: 12,500 Sharing Price Action data for *NSE 500* - _As of closing - 11th Feb 2025_ Correction of NSE 500 stocks from its 52 week highs. Drop of more than 50% - 23 stocks Drop of 25% to 50% - 133 stocks Drop of 10% to 25% - 312 stocks Drop of less than 10% - 32 stocks *Median Stock Fall from its 52 week high to CMP for NSE500* Top 100 by Mcap - Avg fall of -23.45% 100 - 250 by Mcap - Avg fall of -29.00% 250 - 500 by Mcap - Avg fall of -34.41% *Overall avg drawdown on NSE500 is -30.60%* However the index is down only -16% due to Market cap weights assigned for index methodology by NSE. *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: -4969.3 Crs. DII Cash: 5929.24 Crs. *WTD* FII: -11919.43 Crs. DII: 11446.65 Crs. *MTD* FII: -22098.83 Crs. DII: 18720.7 Crs. *F&O CUES* FIIs stance on index futures were bearish in the previous session. They have added 2K short contracts. FIIs net position on index futures now stand at 186K 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: 13-02-2025* BANKBARODA: Fund Raising DEEPAKNTR: Financial Results HINDALCO: Financial Results IPCALAB: Financial Results M&MFIN: Fund Raising MANAPPURAM: Financial Results/Dividend/Other business matters PFC: Financial Results *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 0 New 52 Week Lows: 14 *Mid Cap:* New 52 Week Highs: 0 New 52 Week Lows: 33 *Small Cap:* New 52 Week Highs: 0 New 52 Week Lows: 59 *NIFTY500:* New 52 Week Highs: 0 New 52 Week Lows: 106