Stocks to buy or sell: Dharmesh Shah of ICICI Sec suggests buying BEL shares on 9 February 2026

Stock market news: The domestic benchmark indices, Nifty 50 and Sensex, commenced the week with optimism, buoyed by the interim trade framework between India and the US, along with encouraging global indicators and robust earnings from the State Bank of India.

The Nifty 50 increased by 0.45% to reach 25,808.5, while the BSE Sensex climbed 0.5% to touch 83,995.64, as of 9:15 IST.

Out of the 16 major sectors, 15 experienced gains. The broader small-cap and mid-cap indices appreciated by 0.6% and 0.9%, respectively.

On Friday, the domestic equity benchmark indices finished mostly unchanged, showing a slight uptick after the Reserve Bank of India's (RBI) monetary policy committee decided to maintain the repo rate.

Investor optimism grew later in the day as the Sensex increased by 266.47 points, closing at 83,580.40, while Nifty 50 rose by 50.90 points to finish at 25,693.70. This week, Nifty 50 witnessed a 3.5% gain, and Nifty Bank saw a 2.92% increase, wrapping up on a positive note after two weeks of consecutive declines.

In terms of sector performance, PSU Bank, IT, and pharma experienced declines, whereas FMCG, oil and gas, consumer durables, private banks, and real estate sectors saw gains.

As per experts, the primary driving force behind market sentiment was the significant interim trade arrangement between India and the United States, which acts as a pathway to a detailed bilateral trade pact.

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

1. Equity market found their rhythm again as the US-India trade deal boosted the market sentiment. Nifty 50 gained 3.4% to settle volatile week at 25,694. Broader market performed in tandem with the benchmark by gaining more than 3% for the week. Sectorally, Oil & Gas, realty, auto led the recovery while IT and Defence turned out to be laggards.
2. The weekly price action formed a sizable bull candle that closed above past two week’s high, highlighting structural improvement that confirms resumption of uptrend.
3. The rejuvenation of upward momentum underpinned by improving market breadth signals that the current retracement is not a setback but a healthy reset that is paving the runway for Nifty 50 to challenge the All Time High of 26,350 in the upcoming weeks.
4. In the process, bouts of volatility amidst geopolitical development, inflation print and fag end of earnings season cannot be ruled out. In this backdrop, any decline should be capitalized to accumulate quality stocks with strong earnings as strong support is placed at 25,200 being 61.8% retracement of recent up move (24,571-26,341) coincided with 200 days EMA.

Our positive bias is further validated by following observation:

1. The key index heavy weights like financials, oil & gas, Auto (carrying >50% cumulative weightage of Nifty 50) have regained the momentum which would provide impetus for next leg of up move.
2. Faster pace of retracement signifies structural improvement as Nifty 50 retraced back past four week’s 6.5% decline in just a single week.
3. Since Covid lows, intermediate corrections on four distinct occasions have found strong footing in the vicinity of the 20-month EMA, each instance followed by a ~20% advance over the subsequent five to six months. The current 20-month EMA is placed around 24,300, closely aligning with the August swing low of 24,338, thereby reinforcing this zone as a strong structural support going ahead.
4. On the broader market front, Nifty midcap once again defended 52 weeks EMA over last nine months while small cap index witnessed supportive efforts from lower band of six months falling channel. The improving market breadth would result into broadening of the ongoing rally.
5. Market breadth has been witnessing improvement, as the percentage of stocks trading above their 50 days SMA has bounced from bearish extremes of 15% to 42% levels, while percentage of stocks above 200-day SMA within the Nifty 500 universe enhanced to 38%. Historically, such contractions in breadth have preceded durable market bottoms, with extreme bearish readings near 15% marking inflection points in the past.

Key Monitorables:

1. US and India’s Inflation print
2. Brent Crude is heading towards 9 months resistance trend line placed at 72. Only a decisive close above 72 would result into extended rally.

Stocks To Buy This Week - Dharmesh Shah

Dharmesh Shah of ICICI Securities recommends buying Bharat Electronics Ltd (BEL).

Buy BEL shares in the range of ₹421-433. He has BEL share price target of ₹484 with a stop loss of ₹398.

Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 6/02/2026 or have no other financial interest and do not have any material conflict of interest.

The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.