Podcast | Stock picks of the Day: 2 largecaps, 1 midcap that may return 5-11%

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26 Aug, 2025 12:21

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The Indian equity market traded higher on strong momentum led by positive earnings sentiment and fading of global concerns. It managed to break out from the previous upper range to set record lifetime highs.

The Nifty after taking a marginal breather in the July 21 week, registered a breakout to touch a new high of 11,283. Despite closing marginally negative in Wednesday’s trade, the index recouped the losses in the next two consecutive sessions and registered a weekly gain of about 268 points.

It closed slightly below the new higher band placed at 11,278, up 2.43 percent on a weekly basis. After forming a small bullish candlestick pattern on the daily chart in Friday's session, it formed a big white body pattern on the weekly chart.

In the short term, the bullish sentiment is likely to continue. The weekly relative strength index stood at 70, indicating a positive divergence. The moving average convergence divergence (MACD) continued to trade with a bullish trajectory as it stood above the signal line.

With a breakout from the higher band, the index is likely to face new resistance at 11,320 levels in the coming week, with support at 11,170.

As the monetary policy review is due this week, coupled with important earnings announcement, we expect the market to remain cautious with a positive bias in the short term.

With earnings-related momentum continuing at the current phase, we advise investors to remain stock-specific and approach with a buy on dips strategy for the long term.

Given the fresh rally, we expect the Nifty to trade at 11,360 levels on the upside and 11,200 levels on the downside on a weekly basis.

After remaining on a sideways direction with negative biasness, Phillips Carbon registered a strong breakout from the crucial level of 20-days EMA placed at Rs 224 on the weekly chart.

Despite coming under pressure on the intraday basis, the scrip decisively managed to rebound at a new level, thus indicating a trend reversal on a short-term basis. The scrip also witnessed a significant volume breakout.

On the weekly price chart, the scrip registered a bullish candlestick pattern indicating a reversal in trend favoring upward momentum.

Further, the weekly RSI at 69 signaled a buying regime at the current level along with positive cues from MACD suggesting an upward shift.

The scrip is currently holding immediate resistance at Rs 291 and immediate support level at Rs 199. We have a BUY recommendation for Phillips Carbon which is currently trading at Rs. 234.80

Last week Biocon formed a reversal trend favoring upward momentum after consolidating on multiple price level of Rs 674-637 in the last six month.

Although it remained flat during an early trade of the week, it gained strong momentum towards the weekend to close above 200-days EMA levels seen at Rs 560. It also witnessed a substantial support from volume buildup in the same period.

The positive breakout on weekly basis aided the scrip to form a strong bullish candlestick pattern indicating a sustained trend at the current level.

The weekly RSI trend registered an upward momentum at 62 suggesting a buying regime along with MACD trading on a bullish momentum.

The scrip has a support at 521 levels and medium-term resistance level at Rs 637. We have a BUY recommendation for Biocon which is currently trading at Rs. 586.20

Cholamandalam Investment mostly traded on a sideways direction favoring the negative biasness on its one-month price chart, and consolidated from Rs 1,608 levels towards a low of Rs 1,446.

Last week the scrip witnessed a setback as it slipped below crucial support of 200-days EMA level placed at Rs 1,476. Further, the volume growth remained to subdue to drop about 5 percent on an intraday basis.

The scrip trend indicated short-term consolidation which is seen with a formation of bearish candlestick pattern on its weekly price chart post-breach below important moving average level.

Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 48 coupled with the bearish outlook from MACD trend.

The scrip is facing a resistance at 1600 levels and crucial support at Rs 1,274 levels. We have a SELL recommendation for Cholamandalam Investment which is currently trading at Rs. 1463.35

Disclaimer: The author is Founder & CEO, 5nance.com. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.