Kotak Securities Strategist Offers Near-Term Nifty 50 Outlook and Top Stock Recommendations

Market Update: February 26

The domestic market ended with modest gains on Wednesday, February 26, with the Sensex rising 50 points, or 0.06%, to 82,276.07, and the Nifty 50 settling 58 points, or 0.23%, higher at 25,482.50.

According to Amol Athawale, VP - Technical Research at Kotak Securities, the 20-day SMA (simple moving average) of 25,600 may act as an immediate resistance for day traders. If the market trades below this level, a potential slip toward the 200-day SMA of 25,350-25,300 is likely.

Short-term Stock Picks

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For the next 1-2 weeks, Amol Athawale recommends the following three stocks to buy:

Mahindra & Mahindra

• Previous close: ₹3,491.30
• Target price: ₹3,720
• Stop loss: ₹3,360 The stock has rebounded from its important retracement zone and witnessed a robust recovery after declining from higher levels. A breakout from its sloping trendline suggests a new leg of the bullish trend.

DCB Bank

• Previous close: ₹191.28
• Target price: ₹205
• Stop loss: ₹185 The stock is having a breather after a remarkable up move. A consolidation structure suggests bullish continuation chart formation, and the stock comfortably closed above its short-term moving average.

Fortis Healthcare

• Previous close: ₹930.75
• Target price: ₹990
• Stop loss: ₹900 The stock has formed an inverse head and shoulder chart pattern and is trading near the neckline resistance zone. Rising volume activity and structure indicate a fresh leg of upward momentum from current levels.

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