Chartist Talks: These two stocks that can brighten your portfolio according to SBI Securities' Sudeep Shah

Sudeep Shah is the Deputy Vice President and Head of Technical and Derivative Research at SBI Securities

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26 Aug, 2025 12:21

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Sudeep Shah of SBI Securities bullish on Kotak Mahindra Bank and Chennai Petroleum Corporation, which can add beautiful colours to the portfolio.

According to him, Kotak Mahindra Bank has been displaying strong relative outperformance against frontline indices over the past few trading sessions. Notably, the stock’s ratio chart against Nifty has given a decisive consolidation breakout, highlighting its growing relative strength, he said.

On Chennai Petroleum Corporation, he believes the stock has formed a Three Outside Up candlestick pattern on a daily scale, which is a strong reversal sign. Most noteworthy, the reversal is confirmed by robust volume, he said.

On the global front, considering the chart structure, the Deputy Vice President and Head of Technical and Derivative Research at SBI Securities believes the US indices (Dow Jones, S&P 500 and Nasdaq Composite) are likely to extend their southward journey over the next few trading sessions.

From the recent low of 50,199 level, the Nifty FMCG index has witnessed a sharp pullback rally of 4.43 percent in just five trading sessions. However, since the last four trading sessions, the index has been oscillating in a narrow range of 1,143 points. On a weekly scale, it has formed a small body candle with long upper shadow. This show index has taken a breather after a pullback rally.

Most noteworthy, during the recent pullback, the index has failed to cross its 20-day EMA level. Further, the daily RSI (Relative Strength Index) also failed to sustain above 40 mark, which is a bearish sign as per RSI range shift theory.

Going ahead, if the index slips below the zone of 51,500-51,400, then the index may resume its southward journey. In that case, the zone of 51,000-50,900 will act as the next crucial support for the index. On the upside, if the index sustains above the 20-day EMA zone of 52,400-52,500 level, then we may witness an extension of pullback rally. In that case, the index is likely to test the level of 53,400, followed by 54,000 levels in the short term.

Just as Holi brings a vibrant mix of colours, the market too has painted a dynamic picture over the past couple of trading sessions. In line with our expectations, the benchmark index staged a spirited pullback rally of over 700 points in just five trading sessions. However, on Monday, it hit a resistance zone at 22,670-22,700, where the confluence of the 20-day EMA and 38.2% Fibonacci retracement level of its prior downward journey formed a barrier—much like a playful splash of colours meeting a firm wall.

Since then, the index has been moving within a narrow 362-point range, reflecting a phase of consolidation rather than a breakout burst. Similar to how Holi celebrants pause before the next round of festivities, the market seems to be catching its breath. Technically, the index is likely to consolidate in the 22,700-22,200 zone in the near term. The daily RSI has been oscillating in the 42-39 range for the last six sessions, and the trend strength indicator, ADX (Average Directional Index) has been in a falling mode for seven sessions, signaling a lack of strong directional momentum.

We believe the ongoing pullback rally might still have a few more vibrant colours to splash on the market canvas. Talking about crucial levels, the index is likely to face an immediate hurdle at 22,670-22,700, as this zone marks a crucial resistance with the 20-day EMA and the 38.2% Fibonacci retracement level of its prior downward journey (23,807-21,965) is placed in that region. However, if the index manages to surpass this resistance, it could extend the upmove toward 23,000-23,300 levels in the coming sessions. On the downside, the 22,300-22,200 zone is likely to provide a cushion in case of any immediate decline.

As traders, much like Holi celebrants waiting for the perfect moment to strike, patience will be key. A clear breakout will set the stage for the next big move. Let's embrace this colourful pause and prepare for the next vibrant market move!

The stock of Solar Industries has given a downward sloping trendline breakout on a daily scale. This breakout is confirmed by robust volume. Currently, the stock is trading above its short and long-term moving averages. The daily RSI is in bullish territory, and it is in rising mode. Hence, we believe the stock is likely to continue its northward journey.

The stock of Indus Towers has been consolidating within a narrow range of Rs 312-345 for the past 17 trading sessions. As a result, moving averages have started flattening, losing their curvy nature, indicating a lack of strong directional momentum. Additionally, the daily RSI remains in a sideways zone as per the RSI range shift rules, further confirming the ongoing consolidation. Given this chart structure, the stock is likely to continue trading within this range. A decisive breakout on either side will be key in determining the next trending move.

The stock has been displaying strong relative outperformance against frontline indices over the past few trading sessions. Notably, the stock’s ratio chart against Nifty has given a decisive consolidation breakout, highlighting its growing relative strength. Recently, the stock broke out of a consolidation phase on the daily chart, accompanied by a sharp rise in volume, confirming the breakout’s credibility. Hence, we recommend accumulating the stock in the zone of Rs 1,990-1,970 level with a stop-loss of Rs 1,920. On the upside, it is likely to test the level of Rs 2,120 in the short term.

On a weekly scale, the stock has formed a Three Outside Up candlestick pattern on a daily scale, which is a strong reversal sign. Most noteworthy, the reversal is confirmed by robust volume. Further, the stock is surged above its 20 and 50-day EMA level. These averages are started edging higher, which is a bullish sign. The daily RSI is surged above 60 mark, and it is in rising mode. Hence, we recommend accumulating the stock in the zone of Rs 572-568 level with a stop=loss of Rs 545. On the upside, it is likely to test the level of Rs 620 in the short term.

Currently, all three major US indices are trading below their short and long-term moving averages. These averages are in falling mode, which is a bearish sign. Further, the daily RSI of all these indices is in bearish territory, reinforcing the prevailing weakness. Hence, considering this chart structure, we believe the indices are likely to extend their southward journey over the next few trading sessions.