Markets
Stocks to buy—21 February: Ankush Bajaj recommends three stocks for today
Summary
- Stocks to buy today: Ankush Bajaj has three stock recommendations for 21 February
Nifty and Bank Nifty analysis: Market recap for 20 February
The Indian stock market opened with a gap-down on Thursday, 20 February, but saw a swift recovery in the initial phase. However, selling pressure resurfaced, keping the Nifty 50 below the 23,000 mark throughout the session.
Read this | Can India’s defence sector fire on all cylinders again?
Both Sensex and Nifty 50 ended the session in negative territory. The Nifty 50 index declined by 19.75 points to settle at 22,913, while the Bank Nifty index fell 235.55 points to 49,334.55, a drop of 0.48%.
Sectoral performance was mixed, with financial services, banking, and the service sector experiencing declines of 0.75%, 0.48%, and 0.36%, respectively. However, some sectors managed to close in positive territory, with public sector enterprises (PSE) gaining 2.15%, the metal sector rising 0.96%, and the energy sector advancing 0.83%.
Read this | United Breweries’ premium bets take the driver’s seat, but it’s a bumpy road
Among Nifty 50 stocks, Shriram Finance emerged as the top gainer, rising 4.13%, followed by NTPC, which gained 3.29%, and M&M, which closed 2.98% higher. On the other hand, HDFC Bank was the biggest loser, falling 2.32%, while Maruti Suzuki and Tech Mahindra declined by 1.94% and 1.66%, respectively.
Stock market outlook
Nifty is trading near a crucial demand zone between 22,830 and 22,650, repeatedly testing the 22,800 level, which suggests potential weakness. A breakdown below 22,650 could trigger a further decline towards 22,200.
On the upside, the overall trend is expected to remain bearish unless the index decisively closes above 23,400.
Three stocks to buy, recommended by Ankush Bajaj:
Hindalco : Buy at ₹638 | Target ₹690-710 | Stop loss ₹615
The stock has formed a double bottom, breaking above ₹620 with strong volumes, confirming a bullish breakout. If the ₹620 level holds as support, the momentum can push the stock higher. Based on the pattern, a short-term target of 700 looks achievable.
Shriram Finance: Buy at ₹580 | Target ₹625-640 | Stop loss ₹558
On the hourly chart, the stock is forming a triangle pattern and is on the verge of a breakout. If it sustains above the ₹590 level in the coming days, an upside move towards ₹625- ₹640 can be expected. A strong breakout with volume confirmation will strengthen the bullish momentum.
Also read | Weak rupee could pave the way for a long-awaited IT recovery
NTPC Ltd : Buy at ₹325 | Target ₹355-367 | Stop loss ₹309
On the hourly chart, the stock is breaking out of a triangle pattern with confirmation from RSI bullish divergence. Entering a long trade with a low-risk approach could present a good opportunity.
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.
