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Top Stock Picks for February 20, 2025: Key Buys from Axis Bank to JSW Steel

February 20, 2025
Smart Money

Expert Stock Picks for February 20, 2025: Insights from Nuvama

In the ever-evolving landscape of the stock market, identifying top-performing stocks is crucial for investors looking to maximize their portfolio gains. Aakash K Hindocha, Deputy Vice President of WM Research at Nuvama Professional Clients Group, has highlighted Axis Bank, Bajaj Finance, and JSW Steel as his top buy recommendations for today. This article delves into the current market scenarios of the Nifty and Bank Nifty indices and provides detailed analyses of these stocks.

Market Overview: Nifty and Bank Nifty

Nifty Index Analysis

The Nifty index began the week on a challenging note, registering a fresh eight-month low in opening trades. However, it demonstrated resilience by recovering from this low, thanks to a robust five-year trendline support within the 22650 to 22800 range. Notably, Nifty has ended its eight-day losing streak at the start of this week, marking its sixth attempt in as many weeks to bounce back from this support band.

Industry experts note that the continuation of this support is crucial for Nifty’s performance in upcoming sessions. A fresh breakout of the cup and handle pattern could occur if the index sustains below 22780, while short covering is likely to pick up if prices rise above 23150. ### Bank Nifty Analysis

Turning to the Bank Nifty, technical analysis reveals the formation of a piercing pattern on the weekly charts. The latest candle traded below the previous week’s low but subsequently reversed its course, indicating a robust rejection of lower price levels. Bank Nifty has traded within a narrow band of 48800 to 49800 for the past seven sessions, and market analysts anticipate that sustained trading beyond these limits could trigger a fresh 1000-point movement in either direction.

Stock Recommendations for Today

1. Axis Bank (BUY)

  • Last Closing Price (LCP): ₹1011.35
  • Stop Loss (SL): ₹977
  • Target (TGT): ₹1061

Axis Bank has displayed notable bullish trends, particularly after forming a bullish engulfing weekly candle at the beginning of the month. This pattern emerged in proximity to a critical breakout support, bolstering a positive outlook for the stock. Having retraced approximately 50% of its two-year uptrend, Axis Bank appears poised to climb higher.

2. Bajaj Finance (BUY)

  • Last Closing Price (LCP): ₹8439.45
  • Stop Loss (SL): ₹8180
  • Target (TGT): ₹9030

Bajaj Finance has successfully broken out of a significant ascending triangle pattern that has been developing since 2022. After a successful retest of this breakout, the stock is gaining momentum, hinting at a potential increase of 6-8%. This development positions Bajaj Finance well for achieving new highs.

3. JSW Steel (BUY)

  • Last Closing Price (LCP): ₹977.35
  • Stop Loss (SL): ₹954
  • Target (TGT): ₹1032

JSW Steel is regaining its strength following a notable retracement of 61.8% from its previous upward movement between the 52-week range. A strong bullish divergence signaled on the daily chart accentuates investor confidence, particularly as it approaches its 200-day moving average, which is approximately 4% away from current levels.

Disclaimer

The opinions, analyses, and recommendations outlined in this article are based on brokerage information and do not necessarily reflect the views of The Times of India. As with all investment decisions, individuals are encouraged to consult with qualified investment advisors or financial planners before making any financial commitments.

Conclusion

Investors looking for promising opportunities in today’s market may find Axis Bank, Bajaj Finance, and JSW Steel to be appealing options. Both indices indicate various trends that could influence these stocks’ performances as we move forward. With precision and informed decision-making, investors may navigate the market effectively and capitalize on emerging opportunities.