The session was characterized by a positive yet cautious tone. The Nifty IT led the gains, (up 2.31%), as a recovery in heavyweights like Infosys and Tata Consultancy Services helped ease recent concerns over AI-led disruptions. Strength in the PSU Bank and FMCG sectors further supported the indices, with ITC and BEL emerging as top gainers.
Conversely, the Auto and Metal sectors faced profit-booking, while newly listed Kwality Wall’s saw a sharp 5% decline. Market breadth remained favourable, with an advance-decline ratio of roughly 3:2, indicating broad-based buying interest across mid- and small-cap segments. Despite persistent FII outflows, domestic institutional support and stabilizing global cues, aided by steady government bond yields, helped maintain the upward momentum.
Two stock recommendations by MarketSmith India:
Buy: Quality Power Electrical Equipments Ltd (current price: ₹874)
Why it’s recommended: Strong demand from power and grid infrastructure, beneficiary of energy transition and electrification, healthy order book visibility, export growth opportunities, and high earnings growth momentum
Key metrics: P/E: 38.76 | 52-week high: ₹1,082 | Volume: ₹473.72 crore
Technical analysis: Trendline breakout and reclaimed its 100-DMA
Risk factors: High dependence on the power capex cycle, order execution delays risk, commodity price volatility impact, working capital intensity, and export demand fluctuations
Buy: ₹865–880
Target price: ₹990 in two to three months
Stop loss: ₹820
Buy: RBL Bank Ltd (current price: ₹322.25)
Why it’s recommended: Retail-focused growth strategy, improving asset quality trend, digital and partnership-led expansion
Key metrics: P/E:26.91 | 52-week high: ₹332 | Volume: ₹294.88 crore
Technical analysis: Trendline breakout
Risk factors: Asset quality vulnerability in unsecured and microfinance segments, margin pressure from funding costs
Buy at: ₹320-325
Target price: ₹370 in two to three months
Stop loss: ₹302
How the Nifty 50 performed on 17 February
On 17 February, Indian equities ended marginally higher in a range-bound session, with Nifty 50 closing at 25,725.40, up 42.65 points or 0.17%. The index traded within a narrow band of 25,570–25,764, indicating consolidation near the upper end of its recent range, while holding comfortably above 25,600 support. Market breadth was positive, with 1,932 stocks advancing and 1,217 stocks declining (102 unchanged), reflecting a constructive undertone beneath the headline indices. On the sectoral front, Nifty IT (+1.03%), FMCG (+0.90%), and PSU Banks (+2.11%) led the gains, while Metals (-1.06%) and Realty (-0.30%) lagged. Financials were mixed, with Private Banks being largely flat and broader financial services steady. The resilience in defensives and continued traction in select rate-sensitive pockets suggest investors are rotating within sectors rather than reducing risk.
The index delivered a healthy bounce from the 25,400–25,350 zone, reinforcing buying interest at lower levels. Price action indicates a recovery from the recent corrective swing. However, it is currently facing resistance near its 50-DMA, which is capping immediate upside momentum. Momentum indicators are showing signs of improvement. The RSI has moved higher toward 50–55, reflecting strengthening bullish momentum without entering overbought territory, thereby leaving room for further upside. Meanwhile, the MACD has witnessed a positive crossover with histogram bars turning positive, signalling improving momentum after a brief period of weakness.
According to O’Neil’s methodology of market direction, the Indian equity market has transitioned from a Downtrend to a Rally Attempt, indicating an early improvement in the near-term market tone.
Nifty staged a sharp rebound from its key demand zone of 25,350–25,400, highlighting strong buying interest at lower levels and reinforcing the near-term base formation. However, on the upside, the index is approaching a critical supply band in 25,700-25,800, which has historically witnessed consistent selling pressure. A sustained and decisive close above 25,800 would mark an important technical breakout, potentially reviving bullish momentum and paving the way for a move toward 26,000 in the near term. That said, the broader 25,800–26,000 zone remains a formidable resistance corridor, and any further upside is likely to be tested by supply absorption in this range before a clearer directional trend emerges.
How did Nifty Bank perform yesterday?
The Nifty Bank opened on a negative note. However, after touching its intraday low, it staged a strong rebound from lower levels and ultimately closed in positive territory, reflecting resilience among banking heavyweights. The index opened at 60,821.15, touched an intraday high of 61,241.60, slipped to a low of 60,560.00, and finally settled at 61,174.00, gaining 224.90 points (+0.37%). The price action indicates steady accumulation at lower levels, with bulls effectively defending key short-term averages. Broad participation across the banking space supported the move, signalling improving market breadth. Overall sentiment remains constructive, as buyers continue to emerge on minor declines, keeping the short-term trend biased to the upside. The index formed a second consecutive bullish candle on the daily chart and continues to trade comfortably above all its key moving averages, reinforcing the positive near-term outlook.
On the momentum front, the RSI is placed near 62, trending above its signal line around 55, indicating strengthening bullish momentum without entering overbought territory. Meanwhile, the MACD remains in positive territory with a rising histogram, suggesting improving upside momentum and a potential continuation of the prevailing trend. The oscillator setup reflects a healthy momentum structure with scope for further upside if price sustains above near-term averages. Momentum indicators collectively point toward strengthening bullish undertones, suggesting dips may continue to attract buying interest while trend strength gradually improves across the banking index.
Immediate support is positioned in 59,600-58,650, which coincides with the confluence of the 50- and 100-DMA, making it a critical demand area. On the upside, immediate resistance is seen near 61,764, and a decisive breakout above this level could pave the way for a move toward 62,000-62,500. Given the improving momentum indicators and constructive price structure, the index is expected to maintain a positive bias in the near term, with a buy-on-dips approach remaining favourable. However, sustained strength above the resistance zone will be essential to confirm the continuation of the prevailing uptrend.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
