Chartist Talk: Sudeep Shah bets on these 2 stocks but sees bearish move in Kfin Technologies, Godrej Properties next week

Throughout August, the Nifty moved within an extremely narrow band of 816 points — marking its lowest monthly range since March 2024 — despite sharp underlying volatility. The index appeared to be caught in a battle between supportive domestic developments and persistent global uncertainties.

By month-end, Nifty closed near the 24,400 level, recording a 1.38% monthly loss — its second straight month of negative returns. This reflects ongoing selling pressure and the lack of sustained buying interest. From a technical standpoint, the index is now trading below its 20-day, 50-day, and 100-day EMAs — all of which are trending downward, highlighting deteriorating short- to medium-term momentum. Moreover, the daily RSI has dropped below the 40 mark and continues to fall, adding to the bearish tone.

Looking ahead, the 200-day EMA zone between 24,300 and 24,250 has become a critical support area. A sustained move below 24,250 could intensify selling and potentially push the index toward the 24,000 mark. On the flip side, the 24,650–24,700 resistance zone will be key for any upside move. Only a decisive break above this band could signal a recovery and revive bullish sentiment.

Do you think the Bank Nifty will break the 50% Fibonacci retracement level (from the April low to the July high) and decline sharply next week, or is a rebound likely from that support?

Bank Nifty witnessed a sharp decline of nearly 4% in August, forming a strong bearish candle on the monthly chart. This move confirms the Dark Cloud Cover candlestick pattern that appeared in July, thereby strengthening the bearish outlook on a broader timeframe. The index has continued to underperform against the frontline indices in recent weeks, as evident from the Bank Nifty vs Nifty ratio chart, which has dropped to a 100-day low — signalling sustained relative weakness. After registering a swing high of 56,156, the index corrected steeply by more than 2,400 points within just nine trading sessions, reflecting the intensity of the sell-off.

With this correction, Bank Nifty has slipped below its 20-day, 50-day, and 100-day EMAs, all of which have now started to trend lower — a clear sign of weakening momentum. Momentum indicators also align with the bearish setup. The daily RSI has entered bearish territory and continues to decline, while the MACD remains negative, trading below both the signal line and the zero line, confirming downward pressure.

Looking ahead, the 200-day EMA zone in the range of 53,600 to 53,500 will act as a crucial support. A decisive break below 53,500 could intensify the downtrend, with the index likely to drift toward 52,900 and then 52,400 in the near term. On the upside, the zone between 54,500 and 54,600 will serve as a key resistance, and only a sustained move above this range would suggest any meaningful recovery.

Based on the charts, is now a good time to buy Colgate-Palmolive?

The stock is currently in a bearish trend, as evidenced by a consistent pattern of lower tops and lower bottoms. However, it recently found support near the Rs 2,151 level, from which it staged a sharp pullback rally. This rebound has pushed the stock above its 20-day and 50-day EMAs, indicating short-term strength. Despite this, the daily RSI remains in a sideways zone, suggesting a lack of strong momentum.

Hence, while the recent recovery shows signs of short-term positivity, the broader trend remains weak. A more convincing signal would be a sustained move above key resistance of Rs 2,400-2,420 zone with improving RSI. Until then, caution is advised.

What are your top two stock picks for the upcoming week?

CG Power and Industrial Solutions

The stock has registered a breakout from a falling channel pattern on Friday, ending a prolonged phase of consolidation that lasted 72 trading sessions. This breakout is particularly significant as it is accompanied by strong volume, lending credibility to the move and indicating renewed buying interest. In addition to the pattern breakout, the stock has also surged above its key short-term and long-term moving averages, reinforcing the bullish shift in trend. This crossover suggests that the stock may now be entering a new upward trajectory after weeks of range-bound movement.

Notably, the daily RSI has climbed above the 60 mark for the first time since June 2025, signalling a momentum shift and strengthening the bullish case. This RSI breakout from a subdued zone further supports the possibility of sustained upside in the near term. Hence, we recommend accumulating the stock in the zone of Rs 700-690 levels with a stop-loss of Rs 670 level. On the upside, it is likely to test the level of Rs 750 in the short term.

Syrma SGS Technology

The stock formed a Shooting Star candlestick pattern on August 01, which triggered a subsequent correction. This pullback found support near the 50-day EMA, from where the stock has resumed its upward trajectory. Notably, it continues to outperform the broader market, as reflected in the ratio chart against the Nifty 500, which has already broken out of a consolidation phase on the daily timeframe.

Currently, the stock is on the verge of a horizontal trendline breakout, further strengthening its bullish setup. Trading at an all-time high, all key moving averages and momentum indicators are aligned positively. The daily RSI has surged past the 60 mark and remains in an upward trend, reinforcing the strong bullish momentum.

Hence, we recommend accumulating the stock in the zone of Rs 755-750 levels with a stop-loss of Rs 720 level. On the upside, it is likely to test the level of Rs 820 in the short term.

Do you expect a strong consolidation breakout on the higher side in the Nifty FMCG index soon?

The Nifty FMCG index has been consolidating in a tight horizontal range for the past 38 sessions, reflecting market indecision and a lack of broad momentum. This prolonged sideways movement has flattened key moving averages and kept the RSI range-bound, indicating a neutral bias.

While the index remains directionless, the recent GST rate cut has revived interest in the FMCG space, triggering stock-specific breakouts in select names. This suggests that individual outperformers may lead the next phase of gains, even if an index-level breakout is delayed. For now, stock-specific opportunities are likely to offer better returns than waiting for a broader move in the index.

Which two stocks are most likely to crash next week?

With the financial intermediaries & real estate space displaying weakness, following 2 stocks are likely to witness bearish moves in the coming week.

Kfin Technologies

The Nifty Capital Market index has given a breakdown in the last week and thereafter witnessed a sharp correction. The stock of Kfin Technologies has given a horizontal trendline breakdown on a daily scale. Currently, the stock is trading below its crucial moving averages.

The daily RSI and stochastic are in bearish territory, and they are in falling mode. Hence, we believe, the stock is likely to continue its southward journey and test the level of Rs 970 in the next week. On the upside, the zone of Rs 1,055-1,060 will act as a crucial hurdle.

Godrej Properties

The major trend of the stock is bearish as it is marking the sequence of lower tops and lower bottoms. Recently, the stock has marked the low of the Rs 1,934 level and thereafter witnessed a pullback rally. During the pullback rally, it failed to sustain above the 20-day EMA level and thereafter resumed its southward journey.

The daily RSI is in a bearish zone, and it is in falling mode. Hence, we believe, the stock is likely to continue its southward journey and test the level of Rs 1,870 in the next week. On the upside, the zone of Rs 2,010-2,020 will act as a crucial hurdle.

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