Chartist Talk: SBI Securities’ Sudeep Shah picks Swiggy; RBL Bank, Glenmark Pharma set for fresh upmove

The Nifty benchmark index experienced significant volatility throughout the past week, with each of the five trading sessions opening either with a gap-up or a gap-down, reflecting heightened uncertainty in overall market sentiment. From its recent low of 24,404, Nifty managed to stage a recovery despite ongoing volatility and ended the week in the green.

On the weekly timeframe, it formed a bullish candlestick featuring a long upper wick, which signals that selling pressure emerged at higher levels despite the rebound. On the technical front, the index continues to trade above its 100-day and 200-day exponential moving averages, indicating that the broader long-term trend remains positive. However, it is currently fluctuating around its 20-day and 50-day EMAs, suggesting short- to medium-term uncertainty. All these major moving averages are currently flat, typically a sign of consolidation or range-bound movement.

This outlook is further supported by momentum indicators like the RSI and MACD, both of which are displaying neutral signals and reinforcing expectations of limited directional movement in the near future. Sector-wise, the performance of Banking and IT stocks—which carry the highest weight in the index—is critical for determining the Nifty’s trajectory. However, continued underperformance in IT and subdued action in the Banking space have acted as headwinds, restricting any strong upward momentum. A meaningful recovery in these sectors will be crucial for the index to break out of its current range.

Looking at key levels, the 24,950–25,000 zone is likely to serve as stiff resistance, while the 24,550–24,500 range is expected to offer near-term support. A clear and sustained breakout above or below these levels could set the stage for a new directional move.

Is the 54,000 level likely to act as a crucial zone for the next directional move in Bank Nifty?

Bank Nifty has been consistently underperforming the broader market in recent weeks, as reflected by its ratio chart with Nifty hitting a 108-day low—signalling notable relative weakness. The Mansfield Relative Strength indicator is also below zero, confirming that Bank Nifty is lagging not just Nifty but the overall market. Unless momentum improves, this underperformance may continue to weigh on broader sentiment.

Last week, the index moved within a narrow 888-point range and closed at 54,114, up 0.86 percent. On the weekly chart, it formed a bullish candle with an upper shadow, indicating selling at higher levels. Technically, Bank Nifty remains below its 20, 50, and 100-day EMAs, while the daily RSI is in a bearish range, suggesting continued weakness.

Looking ahead, the 54,500–54,600 zone will act as immediate resistance, while the 200-day EMA zone around 53,600–53,500 will serve as key support. A decisive break on either side could trigger a directional move.

Based on the weekly charts, do you see the potential for a new leg of upmove in BSE and Kfin Technologies?

Based on the weekly charts, both BSE and KFin Technologies have shown signs of recovery, rebounding from their recent lows. This bounce suggests that buyers are gradually returning at lower levels, offering early signs of potential strength.

However, despite the pullback, both stocks are still trading below their crucial moving averages, which continue to act as overhead resistance. This indicates that the broader trend remains under pressure and a clear breakout above these levels is needed to confirm a fresh leg of upmove.

Moreover, momentum indicators such as RSI and MACD are currently reflecting sideways movement, suggesting a lack of strong directional bias. The absence of bullish momentum in these indicators implies that the recovery may be limited unless supported by volume and broader market strength.

Hence, while the recent rebound is encouraging, a sustained move above key moving averages along with improving momentum signals will be essential to validate the start of a new uptrend in both counters.

Which stocks are on your radar for the coming week?

Swiggy

The stock has marked a low of Rs 297 in May 2025, and thereafter it has started marking the sequence of higher tops and higher bottoms. On Friday, it gave an 11-days consolidation breakout on a daily scale. Currently, it is trading above its crucial moving averages and they are in a rising trajectory, which is a bullish sign. The RSI, now above 60 and in rising mode, further supports the bullish bias. Hence, we recommend accumulating in the Rs 437–441 zone with a stop-loss of Rs 420 level. On the upside, the stock is likely to test Rs 480 in the short term.

Goldiam International

The stock has gained nearly 16% in the last seven sessions. For nearly 4.5 months, the stock moved sideways, struggling to close above the Rs 380–400 resistance zone, with dull volumes reflecting a lack of strong buying. Recently, volumes have picked up steadily alongside the price, signalling renewed interest. The RSI, currently at 73, has broken past its earlier resistance of 63–65, confirming strong momentum.

The stock now trades well above both its short and long-term moving averages. Hence, we recommend accumulating in the Rs 415–420 zone with a stop-loss of Rs 395 level. On the upside, the stock is likely to test Rs 470 in the short term.

Given the double bottom pattern, do you believe Glenmark Pharma is poised for a new leg of upmove toward its record high?

After correcting nearly 17 percent from its high of Rs 2,285 made on July 11, Glenmark found support in the Rs 1,900–1,905 zone and gave a double-bottom neckline breakout on September 3. Currently, the stock is trading above its crucial moving averages and they are in rising mode. The RSI, near 60, has been rising steadily from the 40 zone, signalling improving sentiment and strengthening bullish momentum.

Hence, considering this chart structure, the stock is likely to continue its northward journey in the short term.

Are you strongly bullish on Netweb Technologies and RBL Bank?

Netweb Technologies has surged nearly 36 percent in just three sessions, supported by a sharp spike in volumes. Currently, the stock trades about 32% above its 20-day EMA and 45% above its 50-day EMA. The daily RSI, at 81, is at its highest since the start of 2025, suggesting the stock is in an overbought zone. Hence, we believe the stock is likely to slide into a period of consolidation before the next leg of the upward rally.

While the stock of RBL Bank has been strongly outperforming the frontline indices. A rising ratio line and a fresh breakout in the RBL Bank/Nifty Private Bank Index ratio chart suggest relative outperformance versus its sector. This is a positive sign, especially when major private banks have been underperforming. Recently, the stock has given a horizontal trendline breakout on a daily scale along with robust volume. The moving averages and momentum indicators are suggesting strong bullish momentum in the stock. Hence, we believe it is likely to continue its outperformance in the short term.

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