Top stocks to buy (AI image)
Stock market recommendations: According to Bajaj Broking Research, SRF and Voltas are the top stock picks for today. Here’s its view on Nifty, Bank Nifty and the top stock picks for February 28, 2025:
Index View: Nifty
The index declined on Thursday as selling pressure accelerated post breakdown below the January low (22,786) and extended decline towards the key support area of 22,500-22,400.
Nifty is currently placed at an extreme oversold territory with weekly RSI and weekly stochastic near historical lows of the last 4 years after recent sharp decline. Hence, we expect Nifty to consolidate in the range of 22,400-23,000 in the coming sessions.
Meanwhile, to pause the ongoing corrective phase, the index needs to start forming higher highs and higher lows in the weekly chart on a sustained basis. Further, for a meaningful pullback to materialize index need to decisively close above the 23000 mark.
Volatility to remain at an elevated level due to concerns surrounding US tariff-related developments. In case of a breakdown and a panic sell off below 22,400 levels can lead to extension of the decline towards 22,200-22,000 levels in the coming weeks.
Despite the ongoing corrective phase and widespread pessimism in the market, several factors support a pause in the current decline and a possible pullback in the coming weeks, details listed below:
Breadth Indicator: The market breadth has reached extreme bearish levels, with only 11% of stocks in the Nifty 500 above their 50-day SMA and 14% above the 200-day SMA. Historically, such levels have often marked the beginning of durable market bottoms in the weeks that follow.
US Dollar Index: The US Dollar Index has remained below 107 for two consecutive weeks, and further weakness would support emerging markets. While Brent Crude: The sustained price below $74 is positive for India’s economic outlook.
Geopolitical Stability: Reduction in geopolitical tensions would further stabilize equity markets, offering support for a recovery in the near future.
NIFTY BANK
Bank Nifty has relatively outperformed the Nifty in the recent weeks and has been consolidating in the last 7 weeks in the broad range of 47,800-50,500. We expect the index to extend the consolidation in the coming weeks. Only a breakout or breakdown in any direction will signal the next directional move in the index.
The last seven weeks of base formation near the lower band of a two-year rising channel suggest the index is likely to resolve higher. We anticipate Bank Nifty to hold above the support area of 48,000-47800 move toward the upper band of the consolidation range placed around 50,500 in the coming weeks.
Stock Recommendations:
SRF
Buy in the range of Rs 2800-2860
| Target | Stoploss | Return | Time Period |
| Rs 3090 | Rs 2670 | 9% | 1 Month |
The stock has recently generated a breakout above the last 3-year broader range of 2700-2100 and is seen consolidating above the same. The stock has witnessed a buying demand in the last 1 week after testing the major breakout area thus offers fresh entry opportunity.
The daily 14 periods RSI has generated a buy signal thus supports the positive bias in the stock. We expect the stock to head higher towards 3090 levels in the coming month being the 138.2% external retracement of the recent breather (2983-2707)
Voltas
Buy in the range of Rs 1290-1315
| Target | Stoploss | Return | Time Period |
| Rs 1440 | Rs 1223 | 10% | 1 Month |
The stock after the sharp decline is witnessing buying demand from the support area of 1160-1220 being the confluence of previous breakout area of April 2024 and 61.8% retracement of the previous rally (745-1944).
The stock has recently generated a breakout above a falling trendline joining highs of January and February 2025 thus offers fresh entry opportunity. We expect the stock to head towards 1440 levels being the high of February 2025 and 38.2% retracement of the entire decline (1944-1135).
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
