Interview | Technical chartist explains why these 2 stocks can give 30-40% return in coming weeks

Vikas Salunkhe of Nirmal Bang

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26 Aug, 2025 12:21

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Information technology stocks have had a rough ride and a less-than-inspirational Q4 earnings show by the big players has only worsened the fall but according to Vikas Salunkhe, Senior Assistant Vice President-Equity Technical Research, Retail, Nirmal Bang, a turnaround is not too far.

"All the leading five stocks — Infosys, TCS, Wipro, Cyient and Tech Mahindra — have witnessed sizeable correction and hence a bounce back is expected," he says.

But for the coming weeks, the two stocks he is bullish on are gaming firm Nazara Technologies and green energy company Borosil Renewables and he tells Moneycontrol why. Edited excerpts of an interview:

The Nifty has faced resistance of 17,860-17,940. We had expected some profit booking from those resistance zones. After the March expiry, we have started witnessing a bounce back in the Nifty from lower levels of 17,000. The rally has given almost 800 points in Nifty reaching up to 17,860 levels.

The level of 17,860 is Nifty's 100 DMA (day moving average), which acted as a resistance. If Nifty's weekly closing is below 17,570 levels, which is its 200-DMA, then the Nifty will test 17,200-17,000 levels.

After the March expiry, we have started witnessing a pullback rally from 38,840 levels. Yes, the Bank Nifty is consolidating between 41,750 and 42,640. Once the Bank Nifty gives a closing above 42,640, it can test 43,500-43,700 levels.

Nifty IT is already at its oversold zone of 26,180. It tested the same level twice from the last year and we have seen a good bounce back from those levels and this is the third time this index has tested the same level.

On the contrary, if Nifty IT breaks 26,200 levels then the next support zone would be 25,200. But we are expecting a good bounce-back rally if Nifty IT manages to sustain above 28,580 levels and then it can rally towards 32,000.

Yes, all the leading 5 stocks have witnessed a sizeable correction and a bounce back is expected. The stocks would be Infosys, TCS, Wipro, Cyient and Tech Mahindra.

Yes, money will be made in both midcap and smallcap IT stocks. But we have witnessed a strong correction in the largecap stocks and we feel major money will be made in the largecap IT stocks as compared to smallcap or midcap IT stocks.

Nazara Technologies is looking very positive at the current level of Rs 565. It has formed a double-bottom formation on its weekly charts and it can reach upt o Rs 800 levels in the coming weeks.

Also, the stock has given a breakout of its downward-sloping trendline on its weekly charts. The stock is consolidating well on its monthly charts, too, which is a positive sign.

It has given a strong breakout of its 50 & 100 DMA on its daily charts as well. Plus, we have also seen a positive RSI (momentum indicator) crossover in its oversold zone. Hence, we are positive on this stock from this quarter.

Borosil Renewables is positive. In its weekly charts, the stock has given a strong breakout of its downward-sloping trendline and we have also seen a rising volume in this stock which will act as a positive sign for Borosil Renewables.

This stock can reach up to Rs 660 levels in the coming weeks. Stock has given a very strong breakout of its 50 & 100 DMA on its daily charts as well with strong rising volume. Also, the momentum indicator RSI has given a good positive crossover.