Nifty Set for Action: SBI Securities’ Sudeep Shah Reveals 4 Stocks Poised to Shine

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, has shared his perspective on the current technical setup of the Nifty and where investors should focus their attention. While the Nifty’s chart patterns indicate that traders should remain cautious in the short term, the broader outlook, according to Shah, continues to be bullish — with four specific stocks showing strong potential for gains.

Current Market Sentiment: Why Caution Is Advised

The Nifty index has been hovering near its recent highs, reflecting strong market sentiment supported by robust corporate earnings, global cues, and consistent foreign institutional investor (FII) inflows. However, Shah warns that some technical indicators — such as the Relative Strength Index (RSI) and moving average divergences — suggest that the index is entering an overbought zone.

“Markets have seen a sharp rally over the last few weeks, and while momentum is still intact, we could see intermittent profit booking. Traders need to manage positions with strict stop-loss levels to avoid being caught in sudden pullbacks,” he said.

Support and Resistance Levels to Watch

• Key Support: 24,350 – 24,400 levels
• Immediate Resistance: 24,800 – 24,900 levels
  If Nifty breaches its support zone, short-term corrective moves could follow. On the other hand, if it breaks past the resistance zone with strong volumes, a new rally could unfold.

Bullish Outlook Despite Short-Term Risks

Even with this cautious stance, Shah maintains that India’s economic fundamentals, strong earnings growth, and healthy domestic participation continue to support a bullish long-term market structure. This, he believes, presents opportunities for positional traders and medium-term investors.

Top 4 Stock Recommendations for the Coming Week

1. Reliance Industries Ltd. (RIL)

• Technical View: The stock has recently broken out of a consolidation phase on the weekly charts with higher-than-average volumes.
• Why It’s Bullish: Strong petrochemical margins, Jio’s subscriber growth, and retail expansion are key triggers.
• Target Price: ₹3,200
• Stop Loss: ₹3,050

2. Larsen & Toubro (L&T)

• Technical View: Trading above major moving averages with a bullish flag breakout pattern.
• Why It’s Bullish: Robust order book in infrastructure and defence, strong execution pipeline.
• Target Price: ₹4,000
• Stop Loss: ₹3,750

3. HDFC Bank

• Technical View: Double-bottom formation on daily charts, indicating reversal from recent lows.
• Why It’s Bullish: Steady loan growth, improving net interest margins, and retail expansion.
• Target Price: ₹1,750
• Stop Loss: ₹1,675

4. Tata Motors

• Technical View: The stock has formed a cup-and-handle pattern, signalling further upside potential.
• Why It’s Bullish: EV business growth, strong demand for commercial vehicles, and stable JLR performance.
• Target Price: ₹1,100
• Stop Loss: ₹1,040

Trading Strategy for the Week

Shah advises that traders should adopt a buy-on-dips approach in fundamentally strong stocks while keeping a watch on the broader index for any signs of weakness. Positional investors can accumulate the above picks with a 2–3 week horizon.

He also stressed the importance of risk management, recommending that traders avoid overleveraging and book partial profits when targets are near to safeguard gains.

Bottom Line

While short-term volatility is possible, the medium- to long-term bullish structure of the Indian market remains intact. With disciplined trading and focus on quality stocks like Reliance, L&T, HDFC Bank, and Tata Motors, investors can position themselves for potential upside in the coming week.