SBI Securities' Expert Stock Recommendations for the Upcoming Week
In a volatile market environment, Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, has identified Bajaj Finance and Larsen & Toubro as the top stock picks for the week commencing February 9, 2026. His analysis provides a detailed outlook on the Nifty and Bank Nifty indices, highlighting key support and resistance levels amid heightened uncertainty.
Nifty View: A Week of Extreme Volatility and Consolidation
The benchmark Nifty index experienced a truly high-voltage week, navigating an exceptionally volatile environment. It oscillated within a massive 1,662-point range, marking its widest weekly swing since June 2024, which underscores the heightened uncertainty gripping the market. Volatility peaked on Union Budget day when Nifty slipped sharply to an intraday low of 24,571, driven by concerns over a proposed increase in STT on F&O transactions.
However, the sell-off proved fleeting. A powerful 1,770-point rebound followed as global risk sentiment improved after US President Donald Trump announced an immediate cut in reciprocal tariffs on Indian goods from 25% to 18%. This global trigger propelled the index to an intraday high of 26,341, reigniting hopes of a fresh all-time high.
That optimism, however, failed to sustain. Within the very first minute of trade, Nifty witnessed a sharp 600-point intraday cut, indicating aggressive profit-booking at higher levels. Despite supportive global cues, the index struggled to decisively scale new highs, underscoring the fragile and nervous market sentiment.
As the week progressed, Nifty slipped into a phase of sideways consolidation. Heavy selling pressure in IT stocks capped broader market upside, as rising concerns around recent developments in artificial intelligence sparked apprehensions about the sector's long-term growth outlook. Consequently, the Nifty IT index emerged as the worst-performing sector, ending the week with a sharp decline of 6.91%.
From a technical standpoint, momentum indicators continue to signal consolidation, suggesting that the index may remain range-bound before a decisive directional move unfolds. Looking ahead, the 100-day EMA zone of 25,500–25,550 is expected to act as immediate support, followed by the 25,200 level. On the upside, the 25,850–25,880 band remains a critical resistance area. A sustained move above 25,880 could pave the way for further upside toward 26,000, followed by 26,200 in the near term—potentially setting the stage for another attempt at higher levels.
Bank Nifty View: Fresh All-Time High Amid Consolidation Signals
The banking benchmark index, Bank Nifty, scaled a fresh all-time high of 61,764 on Tuesday, underscoring the continued strength in the financial space. However, the index struggled to sustain higher levels, as sharp profit-booking emerged in the latter half of the week. Despite the pullback, Bank Nifty closed the week on a firm footing at 60,120, registering nearly 3% weekly gains. On the weekly chart, the index formed a bullish candle with a long upper shadow, reflecting elevated intraday volatility and persistent selling pressure near higher zones.
From a trend perspective, Bank Nifty continues to trade comfortably above all its key moving averages, reinforcing the resilience of the medium-term uptrend. That said, momentum indicators and oscillators have begun to flatten, suggesting a phase of consolidation or sideways movement as the market digests recent gains and awaits fresh triggers.
Looking ahead, the 20-day EMA zone of 59,600–59,500 is expected to act as the immediate and most crucial support area. Holding above this zone will be vital to preserve the prevailing bullish structure. On the upside, the 60,400–60,500 band remains a strong supply zone. A decisive and sustained breakout above 60,500 could revive bullish momentum, opening the door for a swift rally toward 61,200, with the potential to extend further toward 62,000 in the short term.
Stock Recommendations: Technical Analysis and Entry Points
Bajaj Finance (BAJFINANCE): This stock has given a decisive breakout above the 942–976 consolidation range seen over the last three sessions, supported by a sharp spike in volumes, adding credibility to the move. The RSI has climbed strongly from 32 to 58, reflecting improving momentum. On the ADX indicator, DI+ has crossed above DI-, indicating strengthening trend direction. Rising green MACD histogram bars further confirm bullish momentum pickup. Overall price action and indicators suggest the stock is likely to see continued upside in the near term. Hence, it is recommended to accumulate the stock in the zone of 985-980 with a stoploss of 955. On the upside, it is likely to test the level of 1050 in the short term.
Larsen and Toubro (LT): This stock has staged a strong rebound from its 200-day EMA on the daily chart, signalling a shift in trend. The RSI has recovered sharply from an oversold level of 24 to 59, indicating strengthening bullish momentum. Rising MACD histogram bars further support the positive bias. The Infra index has moved from the improving to the leading quadrant on the Relative Rotational Graph (RRG), highlighting improving sector-wide strength and momentum, with LT leading the move. Strong price action and sectoral momentum suggest the stock is well placed to extend its uptrend. Hence, it is recommended to accumulate the stock in the zone of 4075-4065 with a stoploss of 3945. On the upside, it is likely to test the level of 4355 in the short term.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
