Top stocks to buy (AI image)

Stock market recommendations: Bajaj Broking Research recommends Colgate-Palmolive (India), and Varun Beverages as the top stocks to buy on February 27, 2026. The brokerage shares a detailed outlook on Nifty and Bank Nifty:Index view: NiftyIndian equity markets witnessed a highly volatile trend during last week, oscillating within a defined range before ultimately settling on a flat note. The choppiness reflects prevailing uncertainty, with investors closely tracking geopolitical tensions between the United States and Iran. In addition, ongoing developments related to artificial intelligence and tariff policies are expected to play a crucial role in shaping overall market sentiment and determining the near-term directional bias.Technically, the index has been consolidating within a broad range of 25,350–25,900 over the past 10 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 will likely provide clarity on the next directional trend. Until such a move occurs, volatility is expected to remain elevated amid 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. On the downside, 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 25,100–25,200 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 NiftyBank Nifty continues to outperform and maintain higher highs and higher low in the long-term chart. PSU banking stocks within the bank nifty continues to outperform the private banking stocks.Bias remains positive and we believe dips should be used as buying opportunity, with short term support seen at 60,500-60,200 levels being the confluence of the 20 days EMA and the key retracement of previous up move. Volatility is likely to remain elevated amid uncertain global cues. In the near-term, the index is likely to trade in the range of 60,000-61,750. A decisive move beyond this range could trigger fresh directional momentum. We expect the index to move higher above 61,750 and gradually head higher towards 62,500 levels in coming weeks.

Stock Recommendations:

Colgate-Palmolive (India)Buy in the range of ₹ 2265-2305

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 that buying momentum is returning in stock.The recent move above this consolidation zone signals a breakout from the base formation, reinforcing a positive bias and open upside towards 2470 levels being the confluence of the measuring implication of the last three months consolidation range and the 61.8% retracement of the last 7 months decline (2747-2030).Varun Beverages Ltd (VBL)Buy in the range of 455-463

Management reiterates double – digit growth outlook supported by weather normalization, category expansion, and distribution penetration. All four India Greenfields commissioned in H1 CY 25 provide >50 % incremental capacity without major capex for the next two years. Rural/semi – urban growth, increasing cooler footprint and higher traction in hydration and dairy categories sustain growth visibility, while low/no sugar now forming ~59% of volumes reinforces mix resilience.We assign a 25 x EV/EBITDA multiple to CY 27E EBITDA, yielding a target price of ₹519, capturing VBL’s multi – year earnings trajectory supported by capacity – led volume growth, margin gains from backward integration and disciplined capex. 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)