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Stock market recap: Benchmark domestic indices, the Sensex and the Nifty 50, ended lacklustre on Thursday, 26 February, due to profit booking in select heavyweights, including HDFC Bank and Axis Bank, amid mixed global cues.

The Sensex ended 27 points, or 0.03%, lower at 82,248.61, while the Nifty 50 inched up by 14 points, or 0.06%, to settle at 25,496.55.

The mid and small-cap segments ended with gains; the BSE 150 MidCap Index clocked a decent gain of 0.55%, while the BSE 250 SmallCap Index rose by 0.07%.

The overall market capitalisation of BSE-listed firms increased to ₹468 trillion from ₹467 trillion n the previous session.

Two stock recommendations by MarketSmith India:

Buy: Fortis Healthcare Ltd (current price: ₹963.65)

Buy: Mankind Pharma Ltd (current price: ₹2,280)

Nifty 50 performance | 26 February

Indian equities ended on a subdued note on February 26th, with Nifty 50 closing at 25,496.55, up 14.05 points or 0.06%, after oscillating between 25,400.95 and 25,572.95 during the session. The index witnessed intraday volatility but staged a late recovery, indicating buying interest near 25,400, while 25,600 continues to act as an immediate resistance. Sensex mirrored the trend with marginal gains.

Market breadth was mildly positive, with advances outpacing declines by 1,686 to 1,460 stocks, reflecting selective participation beyond the benchmark heavyweights. On the sectoral front, Pharma, Healthcare, PSU Banks, Oil & Gas, and Auto led the gains. On the other hand, FMCG, Media, and select Financials led the decline. Nifty Pharma and Healthcare indices gained more than 1% each, whereas Financial Services remained largely range-bound.

Nifty continues to hover around its key medium- to long-term moving averages, namely the 50-, 100-, and 200-DMAs, reflecting an ongoing phase of consolidation and lack of clear directional bias. The flattening of the 20-DMA, along with price oscillating around the 50-DMA, indicates fading upside momentum and reduced trend strength in the near term. Momentum indicators also suggest a cautious undertone. The RSI stands at 47, below the neutral 50 mark, pointing to weakening bullish momentum while remaining comfortably above oversold territory. This positioning leaves room for further consolidation or a mild downside drift. Meanwhile, the MACD remains in negative territory, with the MACD line positioned below the signal line, reinforcing the prevailing soft bias. However, the narrowing histogram suggests that bearish momentum may be moderating, indicating the potential for stabilization if price action improves.

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.

Once again, Nifty surrendered the gains of the previous two sessions in a single trading day, underscoring the fragile undertone in the near-term trend. The index continues to hover around its 100- and 200-DMA, indicating a phase of consolidation with a slight negative bias. A decisive break below 25,300 would likely invite renewed selling pressure, potentially opening the path toward 25,000 in the near term and 24,500 thereafter, which remains a crucial level from a medium-term perspective. On the upside, 25,800–26,000 continues to act as a formidable supply area, with selling interest emerging on prior recovery attempts.

Nifty Bank performance | 26 February

Nifty Bank opened on a positive note and maintained a steady undertone throughout the session. After slipping to an intraday low of 60,813.30, the index witnessed buying support at lower levels and staged a recovery, eventually closing in the green. The index opened at 61,193.90, touched an intraday high of 61,284.75, and finally settled at 61,187.70.

The intraday recovery suggests that dip-buying interest remains intact despite intermittent volatility, reflecting underlying strength in select heavyweight Banking constituents. The ability to hold gains near the day’s high indicates that institutional participation continues to support the index at key levels. Overall, the session reflected resilience as the index absorbed mild selling pressure and closed with marginal gains, highlighting a cautious yet constructive tone.

On the momentum front, the RSI is currently placed near 58.43, indicating a neutral-to-positive momentum setup without entering overbought territory. This suggests that the index still has room for further upside before exhaustion signals emerge. The MACD remains in a positive zone with the MACD line trading above the signal line, reinforcing the ongoing bullish bias. The positive histogram reading indicates improving momentum, although the slope remains gradual.

This technical alignment reflects steady participation rather than aggressive buying, implying a phase of controlled strength. The current oscillator structure supports the continuation of the upward bias, provided the index sustains above short-term moving averages.

Immediate support is placed near its 21-DMA around 60,485, while stronger support is seen near 59,875. On the upside, resistance is visible near 61,700, and a decisive move above this could open the path toward 62,000–62,500 in the near term. Given the ongoing sectoral rotation and stability in large private banking stocks, the index may continue to trade with a mild upward bias. However, the sustainability of the move will depend on follow-through buying and broader market confirmation. In the coming sessions, a consolidation with a positive bias appears likely, unless key support levels are breached.

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.

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