According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, for the current rebound to evolve into a stronger up-move in the Nifty 50, a convincing follow-through rally in the upcoming week will be necessary.
He noted a sustained move above 25,100 could pave the way for a sharper up-move towards the 25,400 mark, where the next resistance is expected.
Among stocks, he is betting on Bharat Electronics (BEL) and Shyam Metalics and Energy for next week. "BEL remains strong on the charts, consistently trading above its 20-day EMA, reflecting solid buying support on declines, while Shyam Metalics has broken out strongly from a month-long consolidation with high volumes," he reasoned.
With the recent bounce-back, are you confident that the Nifty can reclaim its September and June highs during October, without much doubt?
The Nifty benchmark index ended the shortened trading week on a positive note, settling at 24,894 with a gain of 0.97 percent, aided by a late-week recovery. On the daily chart, it displayed a “Record Session Count” candlestick formation, which was followed by a pullback rally. The rebound in the last two sessions injected optimism into the market, pointing towards the likelihood of an extended recovery phase.
One of the major driving forces behind this move was the strong showing by Bank Nifty. The Bank Nifty-to-Nifty ratio climbed to a fresh 30-session peak, underscoring the sector’s outperformance. At the same time, the Nifty IT index, which had been under corrective pressure in recent weeks, showed early signs of stabilization.
That said, for the current rebound to evolve into a stronger up-move, a convincing follow-through rally in the upcoming week will be necessary. Broad-based participation, particularly from banking and large-cap stocks, will be key to validating this recovery and avoiding another round of consolidation or profit-taking.
From a levels perspective, the zone of 25,050–25,100 will act as a crucial resistance area, as it coincides with the 61.8 percent Fibonacci retracement of the recent decline. A sustained move above 25,100 could pave the way for a sharper up-move towards the 25,400 mark, where the next resistance is expected. On the downside, the support band of 24,600–24,550 will remain significant. A breach below this region could reignite selling pressure and weaken the ongoing recovery.
Given the current strength, do you expect the Bank Nifty to hit a new record high in October?
Bank Nifty registered an impressive performance this week, clearly outshining the broader market indices. The index advanced more than 2 percent and ended the week above the 55,500 mark — its highest weekly close since late July 2025 — highlighting renewed strength in banking counters. On the weekly chart, a strong bullish candle has emerged, showcasing steady buying interest and improving sentiment across the sector.
Relative strength charts further confirm this momentum, with the Bank Nifty–Nifty ratio hitting a 30-session peak, indicating persistent outperformance of banking stocks against the headline index. Technically, the index has reclaimed all major moving averages, reinforcing the bullish setup. At the same time, the daily RSI is approaching the 60 mark and trending upward, reflecting strengthening momentum.
Looking ahead, the current structure suggests further upside, with Bank Nifty poised to test 56,200, and then 57,000 in the near term. On the flip side, the 20-day EMA placed around the 55,000–54,900 zone will serve as a crucial support base.
In your view, is Nuvama Wealth experiencing a short-term reversal, or could this be the beginning of a new upcycle?
Nuvama Wealth has rebounded over 12.6 percent in the past four sessions, breaking above a downward trendline. While encouraging, it’s early to confirm a full trend reversal. Technical indicators show improvement — RSI is rising, MACD has turned positive, and +DI has crossed above –DI, signaling growing bullish momentum.
However, the stock is nearing key resistance near the upper Bollinger Band, which may limit gains. Sustained buying with strong volumes will be vital to validate this breakout. Overall, the setup looks constructive but awaits confirmation of a broader uptrend.
Has Kalyan Jewellers bottomed out at Rs 442, and is it now positioned for an upward move toward Rs 600?
Kalyan Jewellers has shown early signs of support near Rs 442, but it’s too soon to confirm a reversal. The stock closed above its 20-day EMA, though it remains below longer EMAs, keeping the broader trend weak. RSI and +DI indicate improving momentum, but sustained buying is essential. The Rs 510–515 zone, aligned with the 50-day EMA, remains a key resistance — a breakout above this could extend the pullback toward Rs 535–540. For now, the move appears corrective and warrants close monitoring for confirmation.
Do you anticipate a continuation of the rally in Tata Steel, considering the higher high–higher low structure?
Tata Steel looks poised to extend its rally, supported by a higher high–higher low pattern and strong sectoral momentum, as the Nifty Metal index hit a record high. The stock has stayed above its 20-day EMA for three sessions and formed a bullish candle on strong volumes, signalling renewed buying interest.
With RSI at 61.66 and ADX strengthening (+DI above –DI), momentum remains positive. A breakout above Rs 174–176 could trigger the next leg of the uptrend, while sustaining above short-term averages keeps the outlook constructive.
What are your top two stock picks for the upcoming week?
Bharat Electronics (BEL)
BEL remains strong on the charts, consistently trading above its 20-day EMA (Rs 398), reflecting solid buying support on declines. The stock’s higher lows structure signals an ongoing uptrend. Momentum indicators support this view, with RSI above 60 and ADX above 25, while +DI stays above –DI, confirming strengthening trend momentum. Backed by healthy volumes, BEL maintains a bullish setup. We recommend accumulating in the Rs 412–408 zone with a stop- loss at Rs 395, targeting Rs 455 in the short term.
Shyam Metalics has broken out strongly from a month-long consolidation with high volumes. The RSI, now above 60, signals strengthening momentum, while widening Bollinger Bands indicate a potential trending move. The technical setup suggests further upside as long as the stock holds above the breakout zone. We recommend accumulating in the Rs 970–960 range with a stop-loss at Rs 925 and expect a short-term target of Rs 1,050.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
