SBI Securities' Weekly Stock Recommendations: KEI Industries and Punjab National Bank
Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, has identified KEI Industries and Punjab National Bank (PNB) as top stock picks for the trading week commencing February 23, 2026. His analysis provides a comprehensive outlook on the broader market indices, Nifty and Bank Nifty, highlighting key technical levels and potential movements.
Nifty Index Analysis: Sideways Consolidation with Volatility
Last week, the Nifty index exhibited a narrow trading range of 512 points, marking its tightest weekly band in four weeks and forming an NR4 pattern. Despite this compression, volatility remained elevated. The index experienced a steady pullback over the initial three sessions, followed by a sharp reversal on Thursday that erased earlier gains. By Friday, buying support near the weekly range's lower boundary facilitated a rebound, indicating underlying structural shifts.
Since February 4, Nifty has been consolidating between 26,009 and 25,373, with high volatility persisting. This extended sideways movement has flattened all major moving averages, signaling a lack of directional conviction. Momentum indicators, such as the daily RSI, have oscillated within a narrow band for 13 consecutive sessions, reflecting price compression. Historically, such prolonged congestion often precedes a decisive breakout or breakdown.
In the near term, the index is expected to maintain a sideways trajectory, with stock-specific action likely to remain vibrant. Following the Supreme Court's ruling against Trumpera tariffs, the market may open with a notable gap-up of 350–400 points, buoyed by positive global sentiment.
Key Levels for Nifty:
- Support: The 25,400–25,350 zone is crucial, with multiple swing lows converging here. A sustained breakdown below 25,350 could trigger a decline towards 25,000.
- Resistance: The 25,950–26,000 band serves as a key resistance area. The index's behavior around these levels will shape the next directional move.
Bank Nifty Outlook: Strong Momentum Near Record Highs
Bank Nifty continues to demonstrate remarkable strength, outperforming frontline indices. While Nifty trades nearly 3% below its all-time high, Bank Nifty is positioned near record levels, underscoring the banking sector's dominant momentum. The Bank Nifty–Nifty ratio chart has climbed to a 33-month high, confirming that banking is steering the broader market.
With the index near lifetime highs, all key moving averages align favorably for bulls. The daily RSI remains steady near 60, indicating healthy momentum, while the weekly RSI has pushed deeper into bullish territory, highlighting the uptrend's sustainability.
Given this robust technical setup, Bank Nifty is well-positioned for further upward movement. Key levels include:
- Support: The 20-day EMA zone at 60,500–60,400 acts as critical support.
- Resistance: Resistance is placed at 61,600–61,700. A decisive breakout above 61,700 could propel the index to new all-time highs.
Stock Recommendations: KEI Industries and Punjab National Bank
KEI Industries: The stock has witnessed consolidation followed by a bullish range breakout, forming a strong bullish candle on the daily chart and surging nearly 4% in the latest session with increased volumes, indicating strong buying interest. On a weekly basis, it has marked a four-week bullish streak, reflecting a robust underlying trend. Technical indicators show RSI above 60, MACD in positive territory, and the stock trading above key EMAs, suggesting strength. Recommendation: Accumulate in the 4,740–4,780 zone with a stop-loss of 4,620. Upside target: 5,090 in the short term.
Punjab National Bank (PNB): The PSU Bank index has surged over 5% in the last week, strongly outperforming frontline indices. The ratio chart compared to Nifty is at a 98-month high, indicating a sustained uptrend. PNB stock has gained nearly 10% in the last five trading sessions, showing strong buying participation. It has given an inside candle breakout, surging nearly 2.80% and forming a strong bullish candle on the daily scale, reflecting fresh momentum. The stock trades above all key short-term EMAs, with RSI sustaining above 60 and a positive MACD crossover. Recommendation: Accumulate in the 130–128 zone with a stop-loss of 124. Upside target: 145 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.
