Buy or sell: Rajesh Palviya of Axis Securities recommends BEL, Jio Financial Services, SML Isuzu stock for today

Stock Market News: Domestic equity benchmark indices started off Friday's session with minor gains amid positive global cues. For the fifth consecutive session, the Nifty 50 touched a record high, fuelled by a rise in information technology (IT) stocks and following a global equity rally. 

The Nifty 50 opened at 22,290 level, up 72.50 points or 0.33%, and the BSE Sensex opened higher by 236.20 points or 0.32% at 73,394.44 level.

“The steady climb of the Nifty 50 setting records after records is an indication that the buy on dips strategy is working. This trend may continue. But very soon we are likely to have a days of sharp corrections when DIIs resort to some profit booking and FIIs continue to sell persuaded by the high US bond yields which are likely to remain high for sometime,” advised Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Also Read: Sensex Today | Share Market Live Updates : Nifty down a bit after record high open; Sensex up 150 points

The Sensex and the Nifty 50, ended Thursday's trading session higher as stocks mounted a robust comeback. The Sensex surged almost 500 points and the Nifty 50 hit a new all-time high as investors went on a buying frenzy in technology, auto, and IT stocks.

The benchmark indexes saw a recovery in the last hour of trading following a majority of the day marked by volatility. This was due to both strengthening domestic macroeconomic data and encouraging global cues, such as strong profits from the US technology sector.

The 30-share BSE Sensex ended higher by 535.15 points or 0.74% at 73,158.24 level while the Nifty 50 closed at 22,217.45 level, up 162.40 points or 0.74%.

Before the release of the minutes from the Federal Reserve's most recent policy meeting, which offered little to alter expectations of US interest rate cuts beginning in June, IT stocks had lost 2.8% of their value during the previous three sessions. However, they recovered 1.94% of their losses.

Also Read: Stock Market Today: Sensex settles over 500 pts higher, Nifty 50 above 22,200 as markets pare losses led by IT, metals

"Despite Federal Open Market Committee (FOMC's) hawkish minutes regarding lower inflation, benchmarks at Dalal Street continued to bounce from any dips and managed to scale new records day-after-day. Surprisingly, Bank Nifty underperformed on Thursday and ended in mild red. Instead of Bank Nifty, it was Nifty IT Index that emerged as an outperformer," said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.

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The Reserve Bank of India (RBI) released the minutes of the Monetary Policy Committee (MPC) meeting on Thursday, February 22, highlighting that the policy must continue to be actively disinflationary to ensure anchoring of inflation expectations and fuller transmission.

Also Read: RBI MPC Minutes: Job on inflation front not over, ‘last mile’ of disinflation can be sticky; 5 key highlights

Nifty 50 Outlook

The benchmark index is in a strong uptrend, forming a series of higher tops and bottoms across all the time frames, indicating bullish sentiments. It has also registered a new all-time high at 22,252, indicating bullish sentiments. Recently, the index recaptured a 20-day SMA (21840) and rebounded sharply. The crucial support zones are around 21,800–21,500 levels. On the upside, the index will likely extend its momentum towards 22,500–22,700 levels. The daily and weekly strength indicator RSI is positive, confirming rising strength, said Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities.

The Nifty 50 for the monthly expiry scheduled on 29th Feb has high OI concentration on the Put strike at 22,000 and 21,900, indicating strong support at these levels, while the resistance is at 22,300 and 22,500. There has been a put writing witnessed at 22,100 and 22,000 strikes, further cementing the bullish view for the expiry, explained Palviya.

Also Read: World markets today: US stocks surge on robust Nvidia results, S&P 500 up 1.31%, Nasdaq climbs 2.13%

Stock Recommendations For Today By Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities.

Bharat Electronics Ltd (BEL) (CMP ₹196.30) 

With almost 4% gains, the stock has decisively broken out its "multiple resistance" zone breakout at 192 levels on a closing basis, indicating positive bias. This breakout is accompanied by a huge volume, which signifies increased participation at the breakout. The stock is well placed and sustained above its 20, 50, and 100-day SMA, which reconfirms a strong uptrend. The stock has also registered an all-time high, which shows positive sentiments. This momentum is expected to extend towards 210–230 levels. The short-term support zone is around 188–185 levels, said Rajesh.

BEL has seen a long build in Thursday's session with a price gain of 4% and an OI gain of 2.5%, indicating a long build. On the options front, 200 Call has the highest OI concentration, indicating a probable resistance zone, while significant writing at 195 Put Strike indicates strong support for the stock, explained Palviya.

Also Read: Volatile Nifty hits record high, call option writers lose shirts

Jio Financial Services Ltd (CMP ₹305.80)

In the weekly time frame, the stock has experienced a "multiple resistance" breakout in the range of 268–270 levels. Huge volumes at this rally signify increased participation. The weekly Bollinger band buy signal shows increased momentum. The stock is well placed above its 20, 50, and 100-day SMA, and these averages are inching up along with the price rise. Investors should buy, hold, and accumulate this stock with an expected upside of 330–365 with a downside support zone of 1290–280 levels, advised Rajesh.

SML Isuzu Ltd (CMP ₹1,818)

On the monthly time frame, the stock is surpassing its "multi-month" resistance zone of 1550–1600 levels, indicating bullish sentiments. This rally is accompanied by huge volumes, indicating a strong comeback of bulls. The stock is in a strong uptrend, forming a series of higher tops and bottoms across all the time frames, indicating bullish sentiments. Investors should buy, hold, and accumulate this stock with an expected upside of 1885–1950 and a downside support zone of 1640–1550 levels, said Palviya.

Also Read: Nvidia hits 15% upper circuit as AI mania sparks tech rally on Wall Street, market value nears $2 trillion

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision