Stock Recommendations for This Week: Analyzing Nifty’s Outlook
According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, this weekโs top stock picks include Kajaria Ceramics Ltd and Affle 3i Ltd. The stock market is currently facing significant challenges, with the Nifty index experiencing its longest losing streak since the COVID-19 market crash in 2020. This bearish trend is compounded by geopolitical tensions and disappointing earnings reports, leading to a cautious outlook for investors.
Nifty Index Analysis
The Nifty index has been on a downward trajectory, marking its sixth consecutive week of losses. This trend is the longest since the market crash triggered by the COVID-19 pandemic. The index has formed a bearish candle for four weeks in a row, indicating persistent selling pressure that has thwarted any attempts at recovery. The market sentiment has worsened due to geopolitical developments, particularly the recent imposition of a 25% tariff on Indian goods by U.S. President Donald Trump, which has heightened trade tensions related to Indiaโs oil imports from Russia.
From a technical perspective, the Nifty index is currently trading below its 20-day, 50-day, and 100-day exponential moving averages (EMAs), all of which are trending downward. This situation suggests a sustained bearish momentum. The Relative Strength Index (RSI) has entered a super bearish zone, confirming the negative bias in the market. Additionally, the Moving Average Convergence Divergence (MACD) indicator remains in bearish territory, reinforcing the ongoing downtrend. Key support levels are identified between 24,200 and 24,150, while resistance is expected around the 100-day EMA zone of 24,570 to 24,600.
Bank Nifty Performance
The Bank Nifty index has also concluded the week on a negative note, reflecting ongoing weakness in the financial sector. The index formed a bearish candle on the weekly chart, indicating sustained selling pressure. In recent sessions, it has been consolidating near its 100-day EMA, which is a critical support level. A decisive break below the 54,850 mark could lead to increased downward momentum, potentially pushing the index towards the next support range of 54,000 to 53,900.
Conversely, any upward movement is likely to face resistance around the 55,700 to 55,800 range. This resistance level is crucial for any bullish attempts to gain traction. Investors are advised to monitor these levels closely as they could indicate the future direction of the index.
Stock Recommendations
Sudeep Shah has highlighted Kajaria Ceramics Ltd as a strong stock pick for the week. The stock has been outperforming major indices and recently broke above a horizontal trendline, supported by robust trading volume. It is currently trading above all major moving averages, with positive momentum indicators reinforcing the strength of its uptrend. Investors are encouraged to accumulate shares in the range of 1,310 to 1,300, with a stop-loss set at 1,250. The stock has the potential to reach 1,410 in the near term.
Affle 3i Ltd is another recommended stock, having recently found support near its 100-day EMA. The stock has shown a sharp upward movement and is currently consolidating in a narrow range, indicating strength and stability. It continues to trade above key moving averages, with technical indicators suggesting sustained bullish momentum. Investors should consider accumulating shares in the range of 1,970 to 1,950, with a stop-loss at 1,880. The stock could potentially test 2,150 in the short term.
Disclaimer: The opinions, analyses, and recommendations expressed on this website are those of the contributors or sources cited and do not necessarily reflect the views of Observervoice. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
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