The Sensex gained 317 points, or 0.38%, to end at 82,814.71, while the Nifty 50 settled at 25,571.25. up 117 points, or 0.46%. The BSE 150 MidCap Index climbed 0.44%, while the BSE 250 SmallCap Index slipped 0.19%.
The overall market capitalization of BSE-listed firms rose to ₹467 trillion from ₹465 trillion in the previous session, making investors richer by about ₹2 trillion in a single session.
Two stock recommendations by MarketSmith India:
Buy: Indian Bank (current price: ₹946)
- Why it’s recommended: Improving asset quality (declining GNPA/NNPA), strong CASA ratio, healthy credit growth momentum, improving profitability and RoA, and stable net interest margins
- Key metrics: P/E: 10.57, 52-week high: ₹952.50, volume: ₹171.82 crore
- Technical analysis: Trendline breakout and reclaimed its 100-DMA
- Risk factors: Sensitivity to interest rate cycle, PSU ownership overhang, slippage risk in corporate book, margin pressure if rates soften, exposure to cyclical sectors
- Buy at: ₹940–960
- Target price: ₹1,060 in two to three months
- Stop loss: ₹890
Buy: ABB India Limited (current price: ₹5,987)
- Why it’s recommended: Strong exposure to India’s industrial capex and infrastructure cycle, leadership in automation, robotics, and energy-efficient solutions.
- Key metrics: P/E:72.60, 52-week high: ₹6,246, volume: ₹2,446.95 crore
- Technical analysis: Tight range breakout
- Risk factors: Cyclicality in industrial demand and capital expenditure, competitive intensity in power and automation segments
- Buy at: ₹5,800–6,000
- Target price: ₹7,000 in two to three months.
Nifty 50 performance | 20 February
Indian equities ended on a firm note on 20 February, with the Nifty 50 gaining 0.46% or 116.9 points to close at 25,571.25, after trading within a range of 25,379–25,664. Sensex also finished higher, tracking broad-based buying across Financials, Metals, and FMCG stocks.
On the sectoral front, PSU Banks outperformed with a 1.68% rise, followed by Metals (+1.25%) and Financial Services Ex-Bank (+0.62%), indicating renewed interest in cyclicals. In contrast, IT lagged, declining 0.98%, weighing slightly on overall momentum amid global tech caution. Market breadth was marginally negative, with 1,515 stocks advancing, 1,630 stocks declining, and 106 stocks unchanged, suggesting selective profit-booking despite headline index gains.
Nifty 50 ended at 25,571, forming a relatively small-bodied bullish candle after recent volatility, indicating stabilisation following the sharp corrective move seen earlier this month. Price action over the past few sessions suggests a gradual recovery, with the index attempting to reclaim short-term moving averages while holding above the longer-term rising 200-DMA, which continues to slope upward and reflects an intact broader structural uptrend.
The recent pullback appears corrective within a larger bullish framework rather than a reversal, as higher swings are beginning to emerge on the daily chart. Momentum indicators are showing early signs of improvement. The RSI has rebounded to around 48–52 after dipping near oversold territory, signalling a shift from negative to neutral momentum. A sustained move above the midline would further strengthen bullish undertones. Meanwhile, the MACD has turned higher from deeply negative levels, with the histogram moving into positive territory, suggesting improving momentum and a potential bullish crossover setup.
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 witnessed a sharp decline and has once again approached the key demand zone of 25,350–25,400, an area that has previously attracted buying interest. A decisive breach below this band could intensify selling pressure, potentially dragging the index toward 25,300 in the near term, followed by the psychologically important 25,000 level. On the upside, 25,800–26,000 is likely to remain a formidable resistance band, where supply has consistently emerged on prior rebounds.
Nifty Bank performance | 20 February
Nifty Bank opened on a positive note and maintained a constructive tone through the session, reflecting steady buying interest across key banking heavyweights. After briefly testing lower levels intraday, the index witnessed a smart rebound, indicating demand at dips and strengthening short-term sentiment.
The index opened at 60,627.85, touched an intraday high of 61,360.50, slipped to a low of 60,562.35, and finally settled at 61,172.00, gaining 432.45 points (+0.71%). The day’s price action formed a strong bullish candle, highlighting continued momentum in the banking space. Sustained strength above key short-term averages suggest improving market breadth and reinforcing the ongoing upward bias in the index.
Momentum indicators continue to support the positive undertone in the index. The RSI is currently placed near 59, positioned in the bullish zone, indicating strengthening momentum while still leaving room for further upside before entering overbought territory. Meanwhile, the MACD remains in positive territory with a rising histogram, signalling sustained bullish momentum and confirming the prevailing upward trend. The alignment of both indicators suggests that dips are likely to attract buying interest. Improving momentum breadth across banking constituents also supports the possibility of continued gradual upside in the near term.
Immediate support is placed near the 21-DMA around 60,100, which has been acting as a short-term cushion during minor pullbacks, followed by stronger support near the 50-DMA around 59,700. On the upside, immediate resistance is near the recent swing high zone around 61,350–61,500, where consolidation may emerge before a decisive breakout. A sustained move above this zone could open the door for further upside toward higher levels. Overall, the near-term outlook remains positive, supported by improving momentum and strong participation, with the index likely to trade with a bullish bias as long as key support levels hold.
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.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
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.
