SBI Securities has highlighted Bharat Forge and Bajaj Finance as stocks to watch this week based on technical momentum. The brokerage noted that both companies showed chart patterns suggesting positive price action ahead. Investors may track these stocks alongside upcoming quarterly earnings from key Nifty heavyweights, which are expected to influence the direction of the broader Indian markets.
As the Indian stock market enters the trading week starting July 20, 2026, SBI Securities has pointed to Bharat Forge and Bajaj Finance as potential focus areas for market participants. The brokerage's assessment is based on technical indicators such as chart patterns and momentum readings, which they believe suggest a favorable setup for these two stocks in the short term.
Bharat Forge Technical Momentum
Bharat Forge has recently moved out of a consolidation range between ₹2,082 and ₹2,176. According to the research team at SBI Securities, this breakout was supported by an increase in trading volume, which often signals institutional participation. The analysis highlighted that the stock’s weekly Average Directional Index (ADX) is rising, pointing to strengthening momentum. Additionally, the daily Relative Strength Index (RSI)—a tool used to measure the speed and change of price movements—has crossed above 60, a level often viewed by technical traders as a sign of positive sentiment.
Bajaj Finance Chart Patterns
Bajaj Finance has also drawn attention following a move above a long-term downward-sloping trendline observed in late June. The stock has since maintained its position above key moving averages, suggesting a stable uptrend. The brokerage noted that the ratio of Bajaj Finance to the Nifty index has experienced a breakout, which may imply the stock has the potential to perform differently than the benchmark index. Consistent support for the RSI near the 60 mark and positive indicators from the Moving Average Convergence Divergence (MACD) histogram were cited as reasons for the interest in this stock.
Market Consolidation and Earnings Ahead
Beyond specific stocks, the Nifty index has been moving within a relatively narrow range of 24,530–23,785 for the past five weeks. This period of low volatility is frequently followed by a directional move, as indicated by a tightening of Bollinger Bands on technical charts.
For investors, the most critical factor in the coming days will be the quarterly earnings season. Large index components, including Reliance Industries, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, are scheduled to release their financial results. The market's reaction to these earnings reports will likely determine whether the Nifty breaks out of its current consolidation or continues its range-bound trend. Similarly, Bank Nifty is currently trading near the upper boundary of its recent range. Investors will likely monitor how banking heavyweights perform, as their results will be a key determinant for the financial sector's near-term direction. The 20-day exponential moving average (EMA) will remain a level to track for support across both Nifty and Bank Nifty indices.