Markets
Stocks to buy on 17 February: Ankush Bajaj recommends three stocks for today
Summary
- Stocks to buy today: Ankush Bajaj has three stock recommendations for 17 February
On Friday, 14 February, the Indian stock market experienced a bearish trend throughout the day, with initial bullish attempts quickly fading as bears took control despite recovery in the latter half of the session.
The markets closed in negative territory on Friday. The Nifty 50 index closed down by 102.45 points at 22,929 (-0.44%), while the Bank Nifty index fell by 260.40 points to 49,099.45 (-0.53%).
Major sell-offs were observed in sectors such as media (-3.40%), pharma (-2.87%), PSE index (-2.51%), and healthcare (-2.46%). Notably, no sector ended in the green on Friday, indicating a broadbased decline across the market.
Among Nifty 50 stocks, the top performers were Britannia Industries (+1.04%), ICICI Bank (+0.90%), and Nestlé India (+0.84%). Conversely, the top losers included Adani Ports (-4.39%), Bharat Electronics Ltd (BEL) (-4.28%), and Adani Enterprises (-4.10%).
Indian stock market outlook
The Nifty 50 opened gap-up but struggled to sustain at higher levels, closing the day down by about 102 points.
On the daily charts, we observe that the Nifty 50 tested the swing low of 22,800 for the third time in the last month. We anticipate that the Nifty will continue its decline and test the lower end of the wedge, around 22,670-22,600, in the upcoming week.
On the upside, the resistance zone of 23,000-23,100, which aligns with key hourly moving averages, is expected to cap any rise. Significant open interest additions across the 23,000-23,300 call option strikes are likely to keep the index under pressure. Until call writers unwind their positions, we expect any pullbacks in Nifty to be sold into. Overall, we maintain our negative stance.
Other technical observations
• On the daily chart, the Nifty is trading below the 20-day moving average (DMA) and the 40-DEMA, positioned at 23,253 and 23,466, respectively. The momentum indicator has a negative crossover on the daily chart.
• On the hourly chart, the Nifty is trading below the 20-hour moving average (HMA) and the 40-HEMA, placed at 23,006 and 23,134, respectively. The momentum indicator has a negative crossover on the hourly charts.
• Market breadth was negative, with 448 advances and 2,419 declines on the National Stock Exchange.
Three stocks to buy on 17 February
BAJAJ FINANCE: Buy at ₹8,392 | Target ₹8,520-8,560 | Stop loss ₹8,280
The overall stock trend is positive, and on the 15-minute timeframe, the stock has broken the upper trendline. Additionally, RSI is above the 50 level, indicating bullish momentum.
Taking a long position is a good idea, with the recent swing low as a stop-loss.
INFY: Buy at ₹1,852 | Target ₹1,880-1,895 | Stop loss ₹1,835
On the hourly chart, the stock has shown RSI positive divergence and given an upper breakout of the falling wedge pattern. This indicates a potential bullish move. We expect a strong rally in IT stocks in the coming days.
REDINGTON: Buy at ₹245 | Target ₹290-304 | Stop loss ₹222
The stock is trading at a lifetime high despite a weak market, which itself indicates strong bullishness. Additionally, rising volume is supporting the uptrend, further confirming the strength of the move.
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.
Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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.
Targets are subject to change based on market conditions. Investors should follow stop-loss and risk-management strategies.
