India’s stock markets witnessed a mixed ride on 25 February, the previous trading session before today. The S&P BSE Sensex managed to break its five-day losing streak, closing 147.71 points, or 0.20%, higher at 74,602.12 points. However, the Nifty 50 remained under pressure, slipping 5.80 points, or 0.03%, to settle at 22,547.55.
Sector-wise, the market displayed divergent trends. The Nifty Media index led the gains, rising 0.84%, followed by Nifty Consumption (0.65%) and Nifty Auto (0.51%).
On the downside, the Nifty Metal index fell 1.54% as its constituent companies continued to face selling pressure. Nifty Realty fell 1.31% and Nifty PSU Bank lost 1.22%.
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Among individual stocks, Mahindra & Mahindra surged 2.53%, emerging as one of the top gainers on Tuesday, followed by Bharti Airtel (2.50%), Bajaj Finance (1.60%), and Nestle India (1.35%).
Among the worst-performing stocks were Hindalco, which lost 3.50%, Dr. Reddy’s Laboratories (-3.13%), and Trent (-2.09%), which contributed to the overall market weakness.
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Outlook for India’s stock market
Nifty 50 will remain weak as long as it stays below 22,800, with potential downside levels of 22,100-22,000 in the coming days. Additionally, with the monthly expiry today, the maximum Open Interest (OI) is observed at 22,700 on the Call (CE) side and 22,600 on the Put (PE) side, indicating that traders expect a range-bound expiry. However, if the Nifty breaks either side of this range, it could trigger a major trend movement.
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Three stocks to buy: Recommended by Ankush Bajaj
MEDANTA: Buy at: ₹1,212 | Target: ₹1,288-1,310 | Stop loss: ₹1,168
The Relative Strength Index (RSI) is at 63.17, indicating that while the stock is nearing overbought levels it still has upside potential. Meanwhile, the Moving Average Convergence Divergence (MACD) at 33.63 shows the MACD line trading above the signal line, further confirming bullish momentum.
FORTIS: Buy at: ₹608 | Target: ₹650-660 | Stop loss: ₹588
The stock is currently trading in the oversold territory and has formed a double bottom around the ₹590 level, indicating a potential reversal. A short-term uptick is expected, with possible targets in the ₹650-660 range, provided the stock sustains momentum above key support levels.
KEI: Buy at: ₹3,797 | Target: ₹3,925-3,950 | Stop loss: ₹3,697
The MACD line is above the signal line, indicating a bullish trend. Additionally, on the hourly chart, if the stock sustains above the ₹3,933 level, it could trigger an uptrend with a head and shoulder breakout, signaling further upside potential.
Traders must strictly follow stop-loss levels to manage risk effectively.
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Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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