Stock market recommendations: According to Bajaj Broking Research, ONGC and Crompton Greaves Consumer Electricals are the top stock picks for today. Here’s its view on Nifty, Bank Nifty and the top stock picks for February 21, 2025:
Index View: NIFTY
The Index has been consolidating with high volatility over the past four sessions, trading in a broad range of 22,700-23,050, forming a base after the recent sharp decline. On Thursday, the index formed a small bull candle, highlighting stock-specific actions amid consolidation.
Looking ahead, we anticipate the index to continue building this base. During this phase, dips toward the 22,800–22,700 range should be considered buying opportunities. A breakout above 23,050 would open the door for further upside, potentially reaching the 20-day EMA, currently around 23,250. However, volatility is expected to remain high due to ongoing concerns over US tariff-related issues. A breakdown below the 22,700-support level could trigger further declines toward 22,500-22,400.
During the current week, the market breadth indicator shows extreme pessimism, with the percentage of stocks above the 50 SMA and 200 SMA within the Nifty 500 Universe entering a bearish extreme zone with readings of 07 & 13 respectively. Historically, such readings have marked a shift in downward momentum, often leading to a durable bottom in the weeks that follow. As a result, investors should focus on accumulating quality stocks on dips, supported by strong earnings.
Additionally, silver linings in the current corrective phase include a cooling of the US Dollar index, which is on the verge of breaking down below 106.5, and a potential easing of geopolitical tensions, both of which could provide stability and support a pullback rally in the coming weeks.
NIFTY BANK
Over the past month, Bank Nifty has outperformed Nifty, consolidating within a range. Last week, the index formed a base around the support zone of 48,500–48,300, which aligns with the bullish gap from January 28, 2025, and the 80% retracement of the recent uptrend (47,844–50,641).
We expect the index to continue consolidating over the next few weeks within a broad range of 50,600–48,000. The last six weeks of base formation near the lower band of a two-year rising channel suggest the index is likely to resolve higher. We anticipate Bank Nifty to move toward 51,600, the 61.8% retracement of the previous decline (53,888–47,844), with 48,000 providing immediate support. Volatility remains elevated due to ongoing US tariff-related concerns.
Stock Recommendations:
ONGC
Buy in the range of Rs 237-242
The stock is witnessing buying demand after forming base at the key support area of 225-235 thus offers fresh entry opportunity with a favorable risk-reward set up. The key support of 225-235 is the confluence of the 100 weeks EMA and the previous multiple lows of CY24.
Among the oscillators, the daily RSI has recently generated a buy signal thus validates positive bias. We expect the stock to head higher towards 473 in the coming weeks being 61.8% retracement of previous major decline (526-410).
Crompton Greaves Consumer Electricals
Buy in the range of Rs 330-337
The stock after recent sharp decline is witnessing buying demand from the support area of 320-330 being the confluence of previous breakout area of May 2024 and falling trendline support joining lows of August & November 2024.
The stock on Thursday session has generated a breakout above last three sessions range signaling resumption of up move. We expect the stock to head higher towards 365 levels in the coming weeks being the confluence of previous swing high and 50 days EMA.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.