Bajaj Broking Research Unveils Top Stock Picks for February 2026
In a recent market analysis, Bajaj Broking Research has recommended Colgate-Palmolive (India) and Varun Beverages as the prime stocks to purchase on February 27, 2026. The brokerage provides an extensive perspective on the Nifty and Bank Nifty indices, highlighting current trends and future projections amidst a volatile trading environment.
Nifty Index Outlook: Navigating Volatility and Consolidation
Indian equity markets experienced significant volatility last week, fluctuating within a narrow range before concluding on a flat note. This choppy behavior underscores the prevailing uncertainty, with investors closely monitoring geopolitical tensions between the United States and Iran. Additionally, ongoing developments in artificial intelligence and tariff policies are anticipated to critically influence overall market sentiment and determine the near-term directional bias.
Technically, the Nifty index has been consolidating within a broad range of 25,350 to 25,900 over the past ten sessions. This prolonged sideways movement indicates a phase of equilibrium between buyers and sellers. A decisive breakout above 25,900 or a breakdown below 25,350 is expected to offer clarity on the next directional trend. Until such a move occurs, volatility is likely to remain elevated due to uncertain global cues.
Within the current consolidation band, immediate resistance is positioned at 25,650. A sustained move above this level could trigger a pullback rally toward the upper boundary of the range at 25,900. Conversely, a breach below Tuesday’s low of 25,327 would signal renewed weakness, potentially dragging the index toward the 200-day EMA and the previous gap-up zone in the 25,100 to 25,200 region. Overall, markets remain in a wait-and-watch mode, with participants advised to monitor key levels closely for confirmation of the next meaningful move.
Bank Nifty Performance: Outpacing with Positive Bias
Bank Nifty continues to outperform, maintaining higher highs and higher lows on the long-term chart. Public sector banking stocks within the Bank Nifty are notably outperforming private banking stocks. The bias remains positive, and analysts believe dips should be used as buying opportunities, with short-term support seen at 60,500 to 60,200 levels, which represent the confluence of the 20-day EMA and key retracement of the previous up move.
Volatility is likely to remain elevated amid uncertain global cues. In the near-term, the index is expected to trade in the range of 60,000 to 61,750. A decisive move beyond this range could trigger fresh directional momentum. Analysts anticipate the index to move higher above 61,750 and gradually head toward 62,500 levels in the coming weeks.
Stock Recommendations: Detailed Analysis
Colgate-Palmolive (India)
- Buy Range: ₹2,265 to ₹2,305
- Target Price: ₹2,470
- Expected Return: 8.50%
- Time Period: 6 Months
The stock has recently broken out above a seven-month falling wedge pattern, a classic bullish technical formation that often precedes a continuation of the uptrend. This breakout signals that the prolonged corrective phase has ended and buying momentum is returning. The recent move above this consolidation zone reinforces a positive bias and opens upside toward 2,470 levels, which is the confluence of the measuring implication of the last three months' consolidation range and the 61.8% retracement of the last seven months' decline from 2,747 to 2,030.
Varun Beverages Ltd (VBL)
- Buy Range: ₹455 to ₹463
- Target Price: ₹519
- Expected Return: 13%
- Time Period: 12 Months
Management reiterates a double-digit growth outlook supported by weather normalization, category expansion, and distribution penetration. All four India Greenfields commissioned in the first half of calendar year 2025 provide over 50% incremental capacity without major capital expenditure for the next two years. Rural and semi-urban growth, increasing cooler footprint, and higher traction in hydration and dairy categories sustain growth visibility, while low or no sugar products now form approximately 59% of volumes, reinforcing mix resilience.
Analysts assign a 25x EV/EBITDA multiple to calendar year 2027 estimated EBITDA, yielding a target price of ₹519. This captures VBL’s multi-year earnings trajectory supported by capacity-led volume growth, margin gains from backward integration, and disciplined capital expenditure. The valuation reflects the durability of the core franchise while conservatively treating new categories and international scaling as incremental optionality.
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.
