Stock Market News: The main domestic stock indices, Nifty 50 and Sensex, finished on a mixed note on Tuesday, with the Sensex registering a modest increase while the Nifty 50 ended lower.
The Sensex gained 147.71 points, concluding at 74,602.12, whereas the Nifty 50 fell by 5.80 points to close at 22,547.55. Indian markets will be closed today (Wednesday, February 26) on account of Maha Shivratri. The expiration of the Nifty 50’s monthly derivatives contracts is set for Thursday, February 27, which may lead to increased volatility as traders adjust their positions, according to analysts.
Both the Nifty 50 and Sensex are down 14% and 13% from the all-time highs reached in September, shaken by an economic slowdown, declining corporate earnings, surging foreign investor sell-offs, and uncertainty in global trade.
Vinod Nair, Head of Research at Geojit Financial Services, noted that market sentiment is anticipated to stay cautious in the near future due to ongoing pressure on the Indian Rupee, persistent foreign institutional investor outflows, and developments concerning tariffs. Key macroeconomic indicators, such as US Core PCE and GDP figures for both the US and India, will play a crucial role in shaping expectations regarding the future monetary policy of the central bank.
Nifty 50 broke below its support zone of 22,650-22,800 which it hand been holding on to for the past 4 weeks after it closed at 8 month low in Friday’s session. Lower targets of 22,400/22,100 have opened up after the index gave a breakdown of bearish head and shoulder pattern below 22780 neckline. However the risk reward does not favour fresh shorting at current levels. Short covering is unlikely unless 22,950 is recouped on a closing basis.
Bank Nifty has not made a fresh swing low despite breaking below its range of 48,800-49,800. The index has broken below this range which it was holding for the past 2 weeks now. Fresh downside of 1,000 pts from 48,800 can unfold on this index while negation level stands at 49,000.
On stocks to buy on Thursday, Sagar Doshi of Nuvama recommended three stocks – Prestige Estates Projects, Union Bank of India, and Bajaj Finance.
Early signs of divergence on RSI are visible on daily charts of Prestige Estates while the scrip has been mildly outperforming the realty index over the past 4 weeks indicating buyers interest. The price action also hangs at the lower band of a falling wedge formation on similar time frame allow reversal from the CMP. Momentum is likely to pick up post 1,240 is taken out while over a 8-10% move can unfold for this price set up.
Repeated higher low formation have been spotted on daily charts over the past 5-7 weeks. Scrip has also shown a breakout from a falling trendline on weekly charts which was in place for the past 2 quarters now. Momentum and short covering is likely to pick up once a close above 118 is established.
Bajaj Finance has successfully broken out of and retested a key ascending triangle pattern that has been forming since 2022. The retest has held, and the breakout is gaining momentum, positioning the stock for a potential move higher. This strength could drive the stock up by 6-8%, opening the door for new highs.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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