Market Update: Nifty and Bank Nifty Analysis for 24 February
On Monday, the market opened weak with a gap-down start, and despite a brief recovery attempt, selling pressure remained dominant throughout the session. Nifty faced relentless resistance, with every bounce being sold into, reflecting the strong grip of bears on the market. Heavyweight stocks dragged the index lower, leading to a negative close. The Nifty 50 index closed down by 242.55 points at 22,553.35 (-1.06%), while the Bank Nifty index fell by 329.25 points to 48,651.95 (-0.67%).
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The market witnessed heavy sell-offs across sectors, with metal (-2.17%), services sector(-1.53%), and PSE (-1.45%) taking the biggest hit. On the flip side, only a few sectors managed to stay in the green, including FMCG (0.36%), auto (0.22%), and pharma (0.02%).
The widespread selling pressure highlighted market weakness, with bearish momentum dominating the session.
Among the Nifty 50 stocks, only a few managed to stay afloat, with M&M (+1.49%), Dr. Reddy (+1.11%), and Eicher Motors (+0.97%) seeing modest gains. However, the broader market remained under strong selling pressure, with Wipro (-3.69%), HCL Tech (-3.33%), and TCS (-2.92%) leading the decline, further amplifying the bearish sentiment.
Indian Stock Market’s Outlook
Nifty has slipped below the key support at 22,800 and is currently trading around 22,550. This move highlights significant weakness across the broader market.
As indicated in last week’s report, the market structure was already weakening. We now anticipate a further decline towards the 22,200–22,100 zone.
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Also Read: Mint Primer | Can the market tide over the earnings slump?
Three stocks to buy, recommended by Ankush Bajaj:
Berger Paints: Buy at ₹502.85 | Target ₹516-525 | Stop loss ₹495
On the hourly chart, the stock is breaking out of a falling wedge pattern, accompanied by an RSI bullish divergence. Taking a long trade with a low-risk approach could be a good opportunity.
Glaxo: Buy at ₹2,638 | Target ₹2725-2750 | Stop loss ₹2,544
The stock is exhibiting bullish momentum on the daily timeframe. Additionally, on the hourly chart, it has formed a clear double bottom around the 2460 level, making it a good candidate for initiating a long trade.
Redington: Buy at ₹250 Target ₹275-282 | Stop loss ₹ 236
The stock is in a strong upward momentum, although recent price action indicates some profit booking. Initiating a long trade could offer quick upside gains from current levels.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Also Read: Fresh bear hug could drag the market down to 22,500
