Stock Market News: Sagar Doshi of Nuvama Recommends Prestige Estates, Union Bank, and Bajaj Finance for February 27
Stock Market News : The Indian stock market ended on a mixed note on Tuesday, with the Sensex rising slightly while the Nifty 50 closed in the red. The Sensex gained 147.71 points to close at 74,602.12, whereas the Nifty 50 fell by 5.80 points to end at 22,547.55.
As the market takes a pause on Maha Shivratri (February 26), investors are gearing up for potential volatility on February 27, when the Nifty 50’s monthly derivatives contracts expire. Analysts anticipate significant fluctuations as traders adjust their positions in response to market conditions.
Market Outlook: Caution Prevails Amid Global and Domestic Uncertainties
Indian markets have been under pressure, with the Nifty 50 and Sensex down 14% and 13% from their all-time highs in September 2024. The downturn is attributed to several factors, including:
- Slowing economic growth
- Declining corporate earnings
- Surging foreign investor sell-offs
- Uncertainty in global trade
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the rupee’s depreciation, foreign institutional investor (FII) outflows, and potential tariff developments could keep market sentiment cautious. Additionally, investors are closely watching key macroeconomic indicators such as:
- US Core Personal Consumption Expenditures (PCE) data
- US and India’s GDP figures
These factors will help shape expectations around central bank policies in the coming weeks.
Nifty 50 and Bank Nifty Technical Outlook by Sagar Doshi
Nifty 50 Analysis
- The Nifty 50 has broken below its crucial support zone of 22,650-22,800, which it had held for four weeks.
- The index gave a bearish head and shoulders breakdown below the 22,780 neckline, opening downside targets of 22,400 and 22,100.
- However, risk-reward does not favor fresh short positions at current levels.
- Short covering is only expected if Nifty recovers 22,950 on a closing basis.
Bank Nifty Analysis
- Unlike the Nifty 50, Bank Nifty has not made a fresh swing low despite breaking below its 48,800-49,800 range.
- The index, which held this range for two weeks, now faces a fresh downside of 1,000 points from 48,800.
- The negation level for further downside is at 49,000.
Top Stock Picks for February 27 by Sagar Doshi
Sagar Doshi, Senior Vice President – Research at Nuvama Professional Clients Group, has identified three stocks that could deliver strong gains in the near term:
1. Prestige Estates Projects (BUY)
- Last Closing Price (LCP): ₹1,192
- Stop Loss (SL): ₹1,160
- Target (TGT): ₹1,295
Prestige Estates is showing early signs of RSI divergence on daily charts, suggesting a potential trend reversal. The stock has outperformed the realty index over the last four weeks, indicating strong buyer interest.
- The price action is near the lower band of a falling wedge, a bullish reversal pattern.
- A move above ₹1,240 could lead to an 8-10% upside.
2. Union Bank of India (BUY)
- LCP: ₹116.29
- SL: ₹111
- TGT: ₹126
Union Bank has consistently formed higher lows on daily charts over the past 5-7 weeks, reflecting upward momentum.
- The stock has broken out of a falling trendline on the weekly chart, which had been intact for the past two quarters.
- Momentum is expected to accelerate if the stock closes above ₹118.
3. Bajaj Finance (BUY)
- LCP: ₹8,488.80
- SL: ₹8,180
- TGT: ₹9,030
Bajaj Finance has successfully broken out of and retested an ascending triangle pattern that has been forming since 2022.
- The retest was successful, confirming the breakout’s strength.
- This could drive the stock 6-8% higher, with the possibility of making new highs.
Key Financial Ratios of Recommended Stocks
| Stock | P/E Ratio | P/B Ratio | ROE (%) | Debt-to-Equity |
|---|---|---|---|---|
| Prestige Estates | 21.5 | 3.2 | 16.8 | 0.85 |
| Union Bank of India | 7.4 | 1.1 | 14.5 | 0.69 |
| Bajaj Finance | 32.6 | 6.7 | 18.9 | 2.75 |
Conclusion: What to Expect on February 27
With the derivative contract expiry scheduled for Thursday, the market is expected to witness heightened volatility. Sagar Doshi’s stock recommendations offer attractive trading opportunities, supported by strong technical patterns and fundamental strength.
Traders should keep an eye on:
- Key resistance and support levels in Nifty 50 and Bank Nifty
- Foreign institutional investor (FII) activity
- Upcoming economic data from India and the US
Investors looking for potential short-term gains can consider Prestige Estates, Union Bank, and Bajaj Finance, keeping stop losses in place to manage risk effectively.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.