Stocks to buy or sell: Osho Krishan of Angel One recommends Axis Bank, Himadri Speciality Chemical today – 27 Feb 2025

Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, began Thursday with slight increases despite persistent selling pressure from foreign investors, which continues to impact market sentiment.

The Nifty 50 index opened at 22,568.95, climbing by 21.40 points or 0.09 percent, while the Sensex commenced the session at 74,706.60, advancing 104.48 points or 0.14 percent.

Market analysts have pointed out that weak corporate profits, worries about an economic slowdown, and ongoing withdrawals by Foreign Portfolio Investors (FPIs) have resulted in significant negativity in the markets. As the February derivatives expiration approaches, investors are attentively observing market trends to assess future developments.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that during FY25, foreign institutional investors (FIIs) have offloaded stocks in the cash market amounting to ₹3,87,976 crores. Notably, domestic institutional investors (DIIs) have more than offset this selling by purchasing stocks worth ₹5,55,519 crores.

Nevertheless, the market has continued to trend downward. It is possible that the actions of high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), and family offices, which are not captured in DII statistics, are also influencing the market. This category of savvy investors may have been inclined to sell, as they tend to align with fundamental trends, and the fundamentals have been weakening due to a cyclical slowdown in GDP growth and corporate earnings.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

After a noticeable gap-down at the start, the benchmark index struggled to gain momentum, fluctuating within a tight range for the majority of the trading session. This lack of dynamism could be attributed to participants’ hesitance ahead of the mid-week holiday and the impending monthly expiry of contracts.

A fierce tug of war has unfolded between the counterparties, yet the bears continue to assert their dominance in the market. The technical structure of the benchmark index remains the same, indicating a sustained bearish sentiment as we look ahead to the near term. This prevailing trend suggests a cautious view for the market participants, with sustained uncertainties in the coming days. From a technical perspective, the support level at 22,500-22,400 appears to be crucial for the Nifty 50 index in the near future and requires careful observation. Its ability to hold may determine whether a rebound is possible or if further declines are imminent. Conversely, a bearish gap at 22,670-22,720 presents a significant obstacle for the expiry day, which is expected to hinder any potential recovery efforts.

With the upcoming monthly expiry, it is likely that volatility will increase. It is important to understand the oversold conditions, as these may significantly influence the setting of an intermediate market tone. At the same time, global developments carry substantial importance in determining market trends, so it is crucial to stay informed about these developments.

Stocks To Buy on Thursday – Osho Krishan

On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Axis Bank, and Himadri Speciality Chemical Ltd.

Axis Bank

Axis Bank has experienced a significant correction of nearly 30% from its peak of 1340, with no signs of respite or pullback. The stock is currently trading near historical support levels, almost at the same point it was a year ago. Additionally, the technical indicators have fallen into oversold territory. However, in the last couple of sessions, there has been some stability in the stock, along with a positive crossover in the 14-day RSI, suggesting an increase in buying interest. From a risk-reward perspective, the stock is positioned in a favourable zone and is expected to attract buying activity in the near future.

Hence, we recommend to BUY Axis Bank around 1,000 keeping a stop loss of 960 for a potential Target of 1080-1,100.

Himadri Speciality Chemical Ltd

Himadri Speciality Chemical Ltd has been in a profit-booking phase for the past couple of months and is currently trading below both the exponential moving averages and the 200-day simple moving average (DSMA). The stock has retraced toward the neckline of the breakout that occurred around the 400 subzone in June of last year, and since then, there have been signs of buying interest. Simultaneously, the MACD indicator has shown negative divergence, with lows occurring at similar levels, suggesting a potential countertrend in the near future.

Hence, we recommend to BUY Himadri Speciality around 430 keeping a stop loss of 400 for a potential Target of 480-500.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.