Stock market recap: Indian benchmark indices closed sharply lower on Friday as weak global cues and rising geopolitical tensions weighed on sentiment.
The Nifty slipped below the 25,200 mark, ending at 25,178.65, down 317.90 points or 1.25%, while the Sensex lost 961.42 points or 1.17% to settle at 81,287.19.
Selling pressure intensified, dismantling any hopes of revival. Despite the constant effort seen at the lower level to revive the muted response to participate in the indices has kept the entire trend to stock-specific action. We are now forced to be very selective as triggers are all over the place.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
SIEMENS (Cmp ₹3,418.60)
SIEMENS: Buy above ₹3420, stop ₹3280 target ₹3740 (Multiday)
- Why it’s recommended: Siemens Ltd (India), part of the German multinational conglomerate focusing on industry, infrastructure, and mobility. On the Daily charts we found that prices have been oscillating in a wide range for the last 6 months. A fresh tailwind of new orders have helped the prices rise steadily above the important resistance zone around ₹3380 suggesting the onset of a new trend. As the momentum is seen stepping up we can look at the possibility of the upward trajectory to continue. A successful move above the cloud region augurs well for the prices. With the sector once again showing some prime form, we can look at the trends emanating for an upside move that could unfold in the next few days.
- Key metrics:
- P/E: 82.13,
- 52-week high: ₹5519.40,
- Volume: 857.60K
- Technical analysis: Support at ₹3300, resistance at ₹3800.
- Risk factors: Intense competition, dependency on infrastructure capex, and potential foreign institutional investor (FII) selling pressure.
- Buy : above ₹3420.
- Stop loss: ₹3280.
- Target price: ₹3740. (2 Months)
TIINDIA (Cmp ₹2,753.40)
TIINDIA: Buy above ₹2755, stop ₹2650 target ₹3100 (Multiday)
- Why it’s recommended: Tube Investments of India Limited (TII), part of the Murugappa Group, is a leading Indian engineering company founded in 1949 manufacturing precision steel tubes, automotive components, industrial chains, bicycles, and metal-formed products for diverse industries. With an encouraging Q3 numbers the stock has spent some time forming a V shaped recovery to discover some a way above the resistance zones around 2630. Now, with a long body candle forming on Thursday we are once again discovering some strong trends that can unfold to take the prices higher. With the momentum revving up once again consider going long.
- Key metrics:
- P/E: 39.25,
- 52-week high: ₹3419.90,
- Volume: 996.50K.
- Technical analysis: Support at ₹2500, resistance at ₹3200.
- Risk factors: Intense market competition, and cyclical, industry-specific challenges, despite having a strong market position and good profitability.
- Buy: above ₹2755
- Stop loss: ₹2650
- Target price: ₹3100 (2 Months)
KPIL (Cmp 1240.10)
KPIL: Buy above ₹1240, stop ₹1175 target ₹1365 (Multiday)
Why it’s recommended: Kalpataru Projects International Ltd (KPIL) is a premier Indian Engineering, Procurement, and Construction (EPC) company established in 1981, specializing in power transmission, railways, oil & gas, water, and urban infrastructure. A surprise Q3 helped the prices arrest the fall and the formation of a rounding pattern that has helped the prices. The better-than-expected Q3 numbers have helped the prices move beyond the cloud region. The formation of a long body candle and a rising RSI suggests that the trends could persist. As momentum is seen reviving consider a buy for the next few weeks.
- Key metrics:
- P/E Ratio: 24.71
- 52-week high: ₹1335.70
- Volume: 359.17K
- Technical analysis: Support at ₹1150, resistance at ₹1400.
- Risk factors: Stretched receivables, high working capital intensity and intense competition.
- Buy : above ₹1240.
- Stop loss: ₹1175.
- Target price: ₹1365. (2 Months)
Stock Market Today
On 27 February, Indian benchmark indices closed sharply lower as weak global cues and rising geopolitical tensions weighed on sentiment. The Nifty slipped below the 25,200 mark, ending at 25,178.65, down 317.90 points or 1.25%, while the Sensex lost 961.42 points or 1.17% to settle at 81,287.19. Broader markets mirrored the decline, with Nifty Midcap and Smallcap indices falling around 1% each. Selling was broad-based across sectors, with auto, banking, FMCG, metals, realty, and telecom shedding 1–2%.
However, IT, media, and consumer durables managed to close in the green. Among Nifty constituents, Dr Reddy’s Labs, Bharti Airtel, M&M, HDFC Life, and Sun Pharma were key drags, while Trent, HCL Tech, Infosys, and Apollo Hospitals provided some support. In stock-specific action, Vishal Mega Mart plunged 7% after a large block deal involving 14% equity, Netweb Technologies rose 4% on a collaboration with Vertiv, and MSTC gained 2% after emerging as the lowest bidder in a Coal India tender.
Outlook for Trading
Global market has been largely volatile as the positive trends is now under a question as the upward traction that was expected to help the domestic sentiment is seen missing. The trends are currently caught in geopolitical newsflows that have been gaining maximum attention since the start of the year. Though the domestic market is currently showing a negative bias, with the release of the new series the Indian Q1 GDP growth is expected to be moderate, while premium valuation and a lack of fresh triggers could see further momentum buildup in value stocks. The populist measure undertaken could now set the Bank Nifty as a leader to generate some momentum across the markets.
Moving to the charts we observe that the Bank Nifty status has undergone a major shift. With the possibility of sustained upward traction continuing to persist one should be looking at this sector and associated component stocks to benefit. Hence, we should be looking at sectors like Auto, Realty and Finance companies that are expected to reap benefits of the initiative. With the daily chart clearly showing that there is more room for the Bank Nifty towards 63000 the uptrend could continue to persist. The pullback to the region of 59000 would still not disturb the sentiment and could attract some buying interest. As the outlook undergoes a revision we need to now consider that the market is taking its time to decide the way forward.
The Nifty too has been steadily heading higher but the rise has not been a trended one. The labored rise seen across the daily chart unfolded into a strong weekly candle indicating that the rise beyond the resistance zone around 25000 augurs well for the prices. The trends which we have been highlighting for a while shall continue to persist. The setup on daily chart shows a doji indicating some hesitation. Hence, Nifty has to move above 25500 for generating some fresh momentum.
With the recent pullbacks breaching the 25400 zones we would now have to spend some time in consolidation as the supports highlighted on the charts will begin to kick in. Overall setup continues to remain neutral, and hence one should be looking at every opportunity to initiate some longs. If one notices the long body candle seen on the daily chart on Friday shows some surrender to fill the gap region. The last hour drop combined the lack of participation with the newsflow that lead to sharp drop. As Option data shows oversold territory with PCR at 0.60 we should be wary of engaging more shorts at current juncture.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
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 guarantees 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.