Stock market recap: 27 February
On 27 February, global cues dictated the trends in the market. Indian equity indices, the Sensex and Nifty, concluded the trading day with minimal changes, as their movements were relatively flat throughout the day. The overall sentiment remained cautious due to renewed tariff uncertainties.
US President Donald Trump indicated a potential delay in the implementation of steep import tariffs on Mexico and Canada until 2 April, while also suggesting a significant 25% reciprocal tariff on European automobiles and other products.
The Nifty 50 ended the session with a slight decline of 0.01%, closing at 22,545, while the Sensex gained 0.01%, finishing at 74,612 compared to Tuesday’s close.
On the NSE, 477 stocks advanced, whereas 2,146 stocks declined. Indian equities have faced sustained pressure for several months, with the Nifty 50 poised for its fifth consecutive month of losses—the longest such streak since 1996. Both indices have fallen by nearly 14% from their record highs in September 2024.
Also Read: India’s market resilience faces a test as redemptions rise—will investors hold the line?
Outlook for trading
Markets have been attempting to hold back the bearish bias for a while, but the breach of 22800 levels that was held for 7 trading sessions showed a fatigued and resigned bullish camp that continues to show weakness. The lacklustre end to the February monthly expiry is a testament to the lack of interest currently present in the trading environment. The formation of the small body candles at the trendline indicates that it’s a touch-or-go situation.
As suggested earlier, the gap region formed on Monday shall continue to hold its sway. A curtailed week that emerged has resulted in the absence of genuine buying interest. Further the option data reveals that the Nifty is moving in a very tight range from 22500 to 22600 . The steady call writing at higher levels and no visible support after 22500 makes the scenario very crucial as we enter the next few days.
The prospects of beginning the next series do not look very encouraging, and the continued fear of a non-recovery has killed the recovery enthusiasm. Hence, it’s best to retain a stock-specific approach with an outlook for trading as the market remains undecided with a heavy tilt to the bearish zones.
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Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
•Ashiana Housing: Buy at ₹311, stop ₹298, target ₹328-341
The real estate sector is seeing some profit booking while some select names have been able to revive. The recent rally witnessed some sharp selloffs. The inability of the stock to hold on in the recent reaction indicates that the trends are showing some signs of buying interest. With a potential for more upside, one can consider going long.
• Gulf Oil Lubricants India: Buy above ₹1,145, stop ₹,1120, target ₹1,180-1,215
Positive outlook has emerged yet again in this counter. A rounding formation seen on the charts has triggered an encouraging response. The moving average bands, too, are offering a steady demand that is triggering some opportunities for long. As trends have once again flashed a positive sign, we can look to initiate some longs.
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• Garware Technical Fibres: Buy above ₹775, stop ₹750, target ₹825-840
As prices continue to build for the last few sessions, the long body candle, some strength seen on Thursday sets the tone for the days ahead. The positive overhang forces us to consider a buy approach for the days ahead. A move above 775 augurs well for the prices. Now, poised at heading higher beyond the cluster highs, one can consider going long.
Raja Venkatraman is co-founder, NeoTrader.
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.
