HDFC Securities’ Technical Outlook for PNB, OFSS, and Market Strategy
Market Brief: Nifty 50 Faces Technical Pressure
The Indian equity market experienced a significant downturn on **February 24, 2026**, as the Nifty 50 dropped **288.35 points** to settle at **25,424.65**. This **1.12%** decline reflects growing anxiety over global trade policies and sector-specific disruptions. The index has now fallen sharply below its **21-day Exponential Moving Average (EMA)**, signaling a shift in short-term momentum from bullish to cautious.
The benchmark is currently drifting toward its **200-day Daily Moving Average (DMA)**, which is positioned near **25,324**. This level is viewed as a critical line of defense for long-term investors. A sustained breach below this support could potentially open the doors for a deeper correction toward the **24,918** mark. Technical analysts currently anticipate a period of consolidation within the **25,300 to 25,750** range as the market attempts to absorb recent shocks.
Sector Performance and External Triggers
The Information Technology sector bore the brunt of the sell-off, with the Nifty IT index crashing **4.74%** to end at **30,053.50**. This rout was triggered by news of advancements in automated coding tools capable of modernizing legacy systems, raising fears about the traditional business models of Indian IT majors. Heavyweights like **Infosys** and **HCL Technologies** saw cuts exceeding **3%** and **2%** respectively.
Automotive and Banking sectors also contributed to the drag. The Nifty Auto index slipped **1.37%**, while the broader banking space remained volatile. External pressure intensified following renewed global tariff threats from the **United States**, which introduced a **15%** temporary global tariff. This geopolitical development, combined with a weakening Rupee—trading near **90.95** against the Dollar—has prompted foreign institutional investors to adopt a more defensive stance.
Technical Stock Calls
**Punjab National Bank (PNB)**
Despite the broader market weakness, PNB has shown relative strength. The stock recently closed near **129.59**, marking a move of approximately **2.7%** in recent sessions. Analysts have observed a weekly stochastic crossover, which historically precedes price gains. The bank's loan book growth of **15.34%** year-on-year continues to support a "Buy" sentiment, with technical targets extending toward previous highs of **135**.
**Oracle Financial Services Software (OFSS)**
In contrast, OFSS has faced significant downward pressure, trading at **6,419.50**, a decline of **3.73%** in a single session. The stock has hit a **52-week low** of **6,399.50** as the IT sector rout deepened. Technical signals indicate a downward price momentum, leading analysts to recommend a "Sell" or cautious approach as the stock struggles to find immediate support.
The market breadth remains tilted toward the bears, with over **60%** of the Nifty 500 stocks currently trading below their long-term averages. Immediate resistance for any recovery attempt is now firmly placed in the **25,650 to 25,780** zone.