SBI Securities has pointed to Emcure Pharmaceuticals and VA Tech Wabag as stocks showing technical momentum, despite a broader market struggle. As the Nifty faces a five-week losing streak due to rising crude prices and US bond yields, these specific equities have caught attention. Investors may watch these picks cautiously, as their performance remains linked to the overall market volatility.
SBI Securities recently identified Emcure Pharmaceuticals and VA Tech Wabag as stocks with potential for short-term gains. This comes at a time when the Nifty 50 is facing significant pressure, having recorded its fifth consecutive week of decline. The brokerage suggested that while the broader market is struggling with rising US bond yields and high Brent crude oil prices, these two stocks are showing technical signs of individual strength that differ from the index.
Emcure Pharmaceuticals and VA Tech Wabag Context
Emcure Pharmaceuticals has been highlighted for a bullish setup. Beyond the technical indicators, the company's financial performance provides a foundation for this interest. In the first quarter of the 2027 fiscal year, the company reported revenue growth of 22.8% compared to the same period last year, with profit after tax rising by 36.2%. Investors typically monitor whether such growth can be sustained, especially in the competitive pharmaceutical sector where margins are constantly tested by pricing and regulatory changes.
VA Tech Wabag has also gained attention following a trend reversal, backed by an increase in trading volumes. On the business execution front, the company recently secured an order valued between Rs 100 crore and Rs 250 crore from Reliance Industries. This project involves building an effluent treatment plant for the Dhirubhai Ambani Green Energy Giga Complex. For engineering and construction companies like VA Tech Wabag, securing such orders is important for future revenue visibility and capacity utilization.
Broader Market Risks
While these stocks show technical momentum, the macro environment remains challenging. The Nifty has retreated significantly from its August highs, influenced by geopolitical tensions between the US and Iran and 10-year US Treasury yields hovering near 4.99%. When the main market indices are weak, individual stocks, regardless of their technical patterns, can face selling pressure due to broader market sentiment.
If the Nifty fails to hold the key support zone of 23,000 to 23,100, it could create headwinds for a wide range of equities. Investors should be aware that technical breakouts can sometimes fail if the overall market trend is strongly negative. The key monitorable for shareholders will be whether these stocks can maintain their relative strength if the broader index continues to face selling pressure from institutional investors.