Weekly Technical Signal Overview

Between 9 and 13 February 2026, a total of 120 technical signals were recorded, comprising 46 bullish and 74 bearish patterns. Among bullish signals, 11 were golden crosses—where the 50-day moving average crosses above the 200-day moving average, signalling potential upward momentum. Additionally, 35 gap-up openings were observed, indicating strong buying interest at market open. Conversely, bearish signals included 39 death crosses—where the 50-day moving average crosses below the 200-day moving average, often interpreted as a warning of downward pressure—and 35 gap-down openings, reflecting selling pressure at the start of trading sessions.

Interestingly, no fall-from-peak patterns were detected, implying that stocks generally maintained proximity to their recent highs without significant profit-taking or sharp corrections. This stability amid bearish technical signals may indicate a market in consolidation rather than outright decline.

Market Capitalisation and Sectoral Breakdown

Examining signals by market capitalisation reveals a divergence in sentiment. Large-cap stocks exhibited a bearish tilt with 10 bearish signals against 4 bullish, while mid-cap stocks also leaned bearish with 9 bearish versus 3 bullish signals. In contrast, small-cap stocks showed a bullish bias, registering 34 bullish signals compared to 28 bearish. Micro-cap stocks, however, leaned bearish with 27 bearish and only 5 bullish signals.

Sector-wise, the Computers - Software & Consulting sector was the most active, generating 19 technical signals with a bearish skew (15 bearish vs 4 bullish). Garments & Apparels and Pharmaceuticals & Biotechnology sectors also showed bearish tendencies. Conversely, the Construction sector stood out with exclusively bullish signals (5 bullish, 0 bearish), suggesting sector-specific strength.

Key Technical Patterns Explained

The golden cross is a widely followed bullish indicator where the 50-day moving average crosses above the 200-day moving average, signalling a potential shift to upward momentum. This pattern often attracts buying interest as it suggests improving medium-term trends. Conversely, the death cross occurs when the 50-day moving average crosses below the 200-day moving average, signalling possible downward momentum and caution among investors.

Gap trading refers to significant price differences between a stock’s previous close and its opening price, often accompanied by volume confirmation. A gap up indicates strong buying interest, while a gap down suggests selling pressure. These gaps can act as support or resistance levels and are closely watched by technical traders.

Fall from peak patterns indicate stocks declining from recent highs, signalling potential profit-booking or weakening momentum. The absence of such patterns this week suggests that despite bearish signals, many stocks held firm near their highs, reflecting underlying resilience.

Historically, golden crosses have shown a moderate success rate in signalling sustained rallies, while death crosses often precede short- to medium-term corrections. Gap patterns can provide early clues to market sentiment shifts but require volume confirmation for reliability.

Featured Stocks with Bullish and Bearish Signals

Among the 11 golden cross signals, notable large-cap names include UltraTech Cement Ltd and NTPC Ltd. Mid-cap stocks such as Blue Star Ltd and Astral Ltd also featured. Small-cap and micro-cap companies like SG Mart Ltd and B2B Software Technologies Ltd contributed to the bullish signals, reflecting pockets of strength across market segments.

On the bearish side, 39 death cross signals were concentrated heavily in the Computers - Software & Consulting sector, with companies like Coforge Ltd, L&T Technology Services Ltd, and ASM Technologies Ltd showing downward technical momentum. Pharmaceuticals & Biotechnology stocks such as Natco Pharma Ltd and Gujarat Themis Biosyn Ltd also registered bearish patterns. Large-cap names including Tech Mahindra Ltd and Infosys Ltd appeared among gap down signals, indicating selling pressure in key IT bellwethers.

Gap up signals were led by large-cap stocks such as State Bank of India and Hindustan Zinc Ltd, alongside mid- and small-cap companies like Kalyan Jewellers India Ltd and Sansera Engineering Ltd. These gaps suggest selective buying interest despite broader bearish technical cues.

Sectoral and Market Context: Why These Patterns Emerged

The dominance of death cross and gap down signals in the Computers - Software & Consulting sector reflects ongoing sector-specific challenges, possibly linked to global IT spending concerns and profit-taking after recent rallies. The bearish tilt in Pharmaceuticals & Biotechnology and NBFC sectors may be influenced by regulatory uncertainties and credit market conditions, respectively.

Conversely, the Construction sector’s exclusively bullish signals align with positive infrastructure spending outlooks and government initiatives supporting real estate and urban development. Small-cap stocks’ bullish bias may reflect investors seeking growth opportunities amid large-cap caution.

The absence of fall-from-peak patterns suggests that while technical momentum is mixed, outright sell-offs or sharp corrections have not materialised broadly. This may indicate a market in consolidation, awaiting clearer directional cues.

Forward-Looking Analysis and Key Levels to Monitor

Looking ahead, investors should monitor the sustainability of golden cross signals, particularly in large-cap cement and power stocks such as UltraTech Cement Ltd and NTPC Ltd, where volume and sector fundamentals support potential continuation. Small-cap construction stocks with bullish patterns may also benefit from ongoing infrastructure momentum.

Bearish signals concentrated in the Computers - Software & Consulting sector warrant caution, especially for stocks like Coforge Ltd and L&T Technology Services Ltd, where death crosses suggest possible further downside or consolidation. Monitoring key moving averages and gap levels will be critical to assess potential reversals or breakdowns.

The balanced gap up and gap down activity indicates mixed market sentiment, with no clear directional dominance. Absence of fall-from-peak patterns suggests that despite technical caution, broad-based panic selling is unlikely in the near term.

Investors should watch for upcoming earnings announcements, macroeconomic data releases, and sector-specific developments that could act as catalysts for technical pattern confirmations or reversals. Technical traders may focus on volume confirmation around moving average crossovers and gap levels to validate signals.

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