Angel One Analyst Recommends Buying Central Bank and Engineers India Shares in the Near-Term

Stock Market Update: Thursday, February 22, 2024

Key Highlights:

• The Nifty 50 index rose by 0.19% to 25,532.60 as of 11:20 IST, driven by gains in IT stocks.
• The BSE Sensex increased by 0.14% to 82,393.44.
• Robust institutional buying contributed to the market's growth, with foreign portfolio investors (FPIs) acquiring ₹2,991 crore and domestic institutional investors (DIIs) purchasing shares valued at ₹5,118 crore in the last session.

Sectoral Performance:

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• The Nifty IT index led the gains with a 0.77% increase, followed by Nifty PSU Bank with a 0.84% gain, Nifty Pharma with a 0.39% increase, and Nifty Oil & Gas with a 0.18% rise.

Technical Analysis:

• Nifty 50 is hovering near a crucial support zone of 25,400-25,300, which aligns with multiple swing lows, a bullish gap, and the long-term 200DSMA.
• A decisive breach of this zone could lead to further weakness toward 25,000.
• The index remains range-bound between 25,300 and 25,650, with a breakout on either side determining the next directional move.

Recommendations:

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• Central Bank of India is recommended for a BUY around ₹38 with a Stop Loss of ₹34 and a Target of ₹56-46-48.
• Engineers India is recommended for a BUY around ₹220-215 with a Stop Loss of ₹200 and a Target of ₹250-260.

Market Outlook:

• The Nifty 50 remains range-bound, with a breakout on either side determining the next directional move.
• Nifty Midcap Select has demonstrated relative strength, crossing yesterday's high and Monday's high, forming a "Morning Star" structure.
• Bank Nifty outperformed significantly, marking fresh record highs and gaining over 3%.