Nifty teeters near crucial support! Analysts reveal top stock picks poised for major gains – Don't miss out!

The Indian stock market benchmark, Nifty50, is currently navigating a critical juncture, with investors keenly watching the 20-day Exponential Moving Average (EMA) support level at 25,968. This level is seen as vital for sustaining the broader uptrend.

Nifty Outlook

• Support Levels: Traders and analysts are closely monitoring the 25,968 mark. A decisive breach below this could pave the way for a further downward movement, potentially targeting 25,842.
• Resistance: On any potential rebound, the 26,300 level is expected to act as a significant resistance zone.

Stock Picks for Today

HDFC Securities' senior technical and derivative analyst, Vinay Rajani, has identified two stocks with strong buying potential based on current market trends and technical analysis.

Birlasoft Analysis

• Recommendation: Buy Birlasoft shares.
• Current Price: ₹404
• Price Target: ₹450
• Stop-Loss: ₹375
• Trend: The stock is exhibiting a healthy intermediate uptrend, recovering from a low of ₹336 in October 2025.
• Technical Strength: This week, Birlasoft successfully broke out of a 5-week consolidation range, supported by above-average trading volumes. The stock is trading comfortably above its 20-day and 50-day Simple Moving Averages (SMAs).
• Momentum: Momentum indicators, such as the 14-day Relative Strength Index (RSI), are showing an upward trend and are not in overbought territory, suggesting room for further gains.

Glenmark Pharmaceuticals Analysis

• Recommendation: Buy Glenmark Pharmaceuticals shares.
• Current Price: ₹1,983
• Price Target: ₹2,200
• Stop-Loss: ₹1,820
• Trend: Glenmark Pharmaceuticals has seen a significant rally in recent weeks and is currently trading above a 6-week range, indicating its readiness for the next phase of its uptrend.
• Technical Strength: The stock is holding firm above the 20-day and 50-day SMAs on the daily chart.
• Momentum: Similar to Birlasoft, Glenmark's 14-day RSI is rising and remains outside the overbought zone, supporting the bullish outlook for the stock's uptrend.

Importance of Technical Indicators

• The analysis highlights the consistent use of key technical indicators like EMAs, SMAs, and RSI. These tools help identify trends, support, resistance, and momentum, guiding investment decisions.
• Breakouts from defined price ranges accompanied by strong volumes are considered significant signals of potential upward price movement.

Impact

• The Nifty50's movement at the 20-day EMA will influence overall market sentiment for Indian investors.
• Successful execution of the buy recommendations for Birlasoft and Glenmark Pharmaceuticals could lead to substantial returns for investors who follow these calls.
• The analysis provides actionable insights for short to medium-term traders and investors looking to capitalize on specific stock movements.
• Impact Rating: 8/10

Difficult Terms Explained

• Nifty50: The benchmark Indian stock market index representing the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange (NSE).
• 20-day EMA (Exponential Moving Average): A technical analysis indicator that calculates the average price of a security over the last 20 days, giving more weight to recent prices. It helps identify trends.
• Uptrend: A period during which an asset's price is generally rising.
• Breakdown: A situation where a stock's price falls below a significant support level.
• Rebound: A recovery in price after a decline.
• Resistance: A price level where a stock or index is expected to stop rising and might start falling.
• CMP (Current Market Price): The current price at which a security is trading in the market.
• Stop-Loss: An order placed with a broker to buy or sell a security when it reaches a certain price. It is used to limit an investor's loss on a security.
• Intermediate Uptrend: An upward price movement that lasts for a few weeks to several months.
• 5-week range: A period where a stock's price has been trading within a defined high and low for five consecutive weeks.
• Above average volumes: Trading volume (number of shares traded) that is higher than the typical volume for a given period, often indicating strong interest or conviction behind a price move.
• SMAs (Simple Moving Averages): A technical indicator that calculates the average price of a security over a specified number of periods (e.g., 20 days, 50 days). It smooths out price data to identify trends.
• 14-day RSI (Relative Strength Index): A momentum indicator that measures the speed and change of price movements. It oscillates between 0 and 100 and is used to identify overbought or oversold conditions.