LG Electronics and Bank of India Among Top 3 Stock Recommendations for Wednesday with Projected 9% Upside
Market Brief: Nifty Gains Amid AI-Driven Tech Rebound
The Indian equity market maintained its recovery path on **February 17, 2026**, marking a second consecutive day of gains. The **Nifty 50** closed higher at **25,725.40**, up by **0.17%**, while the **Sensex** advanced to **83,450.96**.
This resilience comes despite a cautious start triggered by a gap-down opening and selling pressure in the metals and realty sectors.
The primary driver for the session was a sharp reversal in the **IT sector**, which climbed **1.74%**. This move was fueled by **Infosys**, which surged between **3% and 5%** following a strategic AI partnership announcement.
This rebound is particularly notable as the IT index had previously plummeted over **8%** in a single week due to concerns regarding AI-driven revenue erosion.
Technical Landscape and Resistance
While the index showed strength, it faced immediate rejection near its **50-day Daily Moving Average (50DMA)**, currently placed around **25,750**. Analysts observe that the **Relative Strength Index (RSI)** has entered a bearish crossover, suggesting momentum may be flattening.
Immediate support has shifted to the **25,600** zone, with a secondary floor at **25,500**. On the upside, a decisive break above **25,800** is required to trigger short-covering toward the **26,000** psychological level.
Sectoral Performance and Institutional Flows
**PSU Banks** emerged as the session's standout performers, with the sectoral index rising **2.11%**. Stability in this space, led by **Bank of India**, provided a necessary cushion against volatility in the energy and metal counters.
Institutional activity remained mixed. **Domestic Institutional Investors (DIIs)** provided significant support with a net purchase of **₹1,667 crore**, effectively absorbing the **₹972 crore** sell-off by **Foreign Institutional Investors (FIIs)**.
Market volatility, measured by the **India VIX**, cooled by nearly **5%** to slip below the **13** mark, indicating a reduction in immediate fear among traders.
Short-Term Trading Focus
Market experts have highlighted specific opportunities for short-term bullish trades based on technical breakouts:
**LG Electronics India**
The stock is indicating a trend reversal after breaking out of a falling channel. It is currently trading near **₹1,550**, with technical targets set at **₹1,648**. Momentum is supported by an **RSI** near **60** and steady accumulation volumes.
**Bank of India**
Trading at **₹171**, the stock hit a **52-week high** during the session. It maintains a strong uptrend characterized by higher highs and higher lows. Analysts set a short-term target of **₹182**, with a protective stop-loss at **₹164**.
**MRPL**
The stock has confirmed a breakout from a "Cup and Handle" pattern on the weekly charts. It closed near **₹193**, gaining nearly **3.7%** in the latest session. Having moved above its major moving averages, it is projected to reach **₹230** as an initial target, provided it stays above the **₹180** neckline.
Broader market sentiment remains cautiously optimistic. While specific sectors like IT and Banking are leading the charge, the failure to clear the **50DMA** hurdle suggests that range-bound movement or minor pullbacks may occur in the coming sessions.