Kamal Ghorui
Stock market recommendations: Sona BLW Precision Forgings, and Eicher Motors have been recommended as the top stocks to buy this week by Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities. He also shares outlook on Nifty and Bank Nifty:Nifty ViewThe benchmark index Nifty staged a strong pullback rally over the last week, closing decisively above the 24000 mark with a robust gain of 5.89%. This marked its strongest weekly performance since February 2021 and signaled a meaningful shift in near-term market sentiment. Investor confidence improved notably after the announcement of a two week ceasefire between the US and Iran, which helped ease global geopolitical concerns. From its recent swing low of 22182, the index rebounded sharply by more than 1800 points, translating into an impressive recovery of 8.19% in just six trading sessions. However, the more important aspect of this move lies in the underlying drivers of strength rather than just the headline numbers.Encouragingly, the rally has been supported by a clear improvement in market participation. Market breadth strengthened significantly, pointing to widespread buying interest across sectors and market capitalizations. The broader market indices remained at the forefront of this rally, with both the Nifty Midcap 100 and Nifty Smallcap 100 posting gains of over 7% for the week. Each formed a strong bullish candle on the charts, suggesting that leadership is emerging beneath the surface and that the broader market may be contributing meaningfully to the ongoing recovery.From a technical perspective, the Nifty has moved above its 20day exponential moving average, which has now begun to turn upward—an early sign of improving short-term momentum. Additionally, the previously declining slope of the 50, 100, and 200day EMAs has started to flatten, hinting at a possible shift in overall trend structure. Momentum indicators are also offering supportive signals. The daily RSI has rebounded to around the 54 mark and is trading above its 9day average, reflecting strengthening buying momentum. At the same time, the MACD histogram shows a gradual pickup in upside momentum, though the key question remains whether this momentum can sustain itself over the coming sessions.Looking ahead, these technical developments indicate that the pullback rally may extend further in the near term. The Nifty is likely to test the 24300 level initially, followed by 24500 if positive momentum continues. On the downside, the zone of 23650–23600 is expected to act as a critical support area, and a sustained hold above this region will be essential to maintain the current bullish undertone.Bank Nifty ViewThe banking benchmark index, Bank Nifty, has emerged as a clear outperformer over the past week, underlining strong leadership from the banking space. The index posted a sharp gain of 8.47% during the week, marking its strongest weekly performance seen in the last couple of years and reflecting a decisive turnaround in sentiment.On the weekly chart, this robust up move has translated into the formation of a large bullish candlestick, signalling strong buying interest and a convincing rebound from lower levels. Technically, the index is now trading comfortably above its 20day exponential moving average, pointing to a positive shift in the short-term trend.Momentum indicators continue to validate this recovery. The daily Relative Strength Index (RSI) is currently placed at 53.91 and remains in a rising trajectory, indicating strengthening upside momentum along with improving breadth within the banking sector.Looking ahead, Bank Nifty appears well placed to extend its ongoing pullback rally. In the near term, the index is likely to test the 56700 level, followed by 57500 if positive momentum sustains. On the downside, the zone of 54700–54600 is expected to act as a crucial support area, and a sustained hold above this range will be key to maintaining the prevailing bullish bias.
Stock recommendations:
Sona BLW Precision ForgingsSONACOMS has broken out of a downward-sloping trendline on the daily chart, signaling a potential trend reversal. The breakout is backed by strong follow-through buying, reinforcing bullish sentiment. The stock has also closed above the upper Bollinger Band, indicating an expansion in volatility along with strength. Momentum indicators further support the up move, with the MACD line crossing above both the signal and zero line. Overall, the alignment of price action and indicators suggests continued upside potential in the near term. Hence, we recommend to accumulate the stock in the zone of 556-551 with a stoploss of 530. On the upside, it is likely to test the level of 610 in the short term.Eicher Motors Eicher Motors, after slipping below its 200-day EMA to a low of 6442, has staged a sharp pullback of nearly 15% over the past four sessions. The stock has reclaimed key short and long-term moving averages, indicating improving strength. Momentum indicators also support the recovery, with RSI rebounding from the 40 zone, signaling renewed bullish momentum. Additionally, a close above the Bollinger Band midline points to expanding volatility, suggesting the pullback is likely to extend in the near term. Hence, we recommend to accumulate the stock in the zone of 7440-7380 with a stoploss of 7100. On the upside, it is likely to test the level of 8000 in the short term.(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)
