SBI Securities Expert Unlocks Top Stock Picks & Market Secrets: M&M, UPL & Nifty Forecast!

Sudeep Shah from SBI Securities has shared his top stock recommendations for investors: Mahindra & Mahindra (M&M) and UPL Limited. His analysis is based on technical indicators and chart patterns.

Nifty Outlook: The Nifty index recently experienced a symmetrical triangle breakout, pushing towards record highs before encountering resistance and profit-taking. It has retested its breakout zone and the 50-day Exponential Moving Average (EMA), signaling renewed buying interest. Key support is identified around 25,300–25,250, while resistance lies at 25,650–25,700. A close above 25,700 could lead to further gains.

Bank Nifty Outlook: Bank Nifty is highlighted as the market's top performer, consistently outperforming broader indices. Its strength is evident in the rising Bank Nifty-to-Nifty ratio. It remains above key moving averages with a bullish bias, and its daily RSI is above 60. Support is seen at 57,500–57,400, and resistance at 58,200–58,300. A sustained move above 58,300 could target 59,000 and 59,600.

Stock Picks:

Mahindra & Mahindra (M&M): Shows a strong breakout above a trendline with high volumes and is trading above rising moving averages. The daily RSI is over 60. Accumulation is suggested between 3700–3660 with a stop loss at 3540 and a target of 3940.

UPL Limited: Has broken above a horizontal trendline, indicating renewed upward momentum. It's trading above key moving averages, with a rising ADX (24.45) and bullish MACD. Accumulation is advised in the 750–740 range, with a stop loss at 710 and a short-term target of 820.

Impact: This analysis provides specific actionable insights for investors looking to capitalize on potential short-term gains in M&M and UPL, as well as strategic levels to watch for Nifty and Bank Nifty. The recommendations can influence trading volumes and stock prices in the short term. Rating: 8/10

Difficult terms:

Symmetrical Triangle: A chart pattern indicating a period of consolidation where price movements narrow, potentially leading to a significant breakout.

Exponential Moving Average (EMA): A type of moving average that places a greater weight and significance on the most recent data points, making it more responsive to recent price changes.

Confluence Area: A zone on a price chart where multiple technical indicators or support/resistance levels align, suggesting a strong point of interest.

Benchmark Index: A stock market index that is used as a standard against which the performance of other investments is measured (e.g., Nifty).

Relative Strength: A technical analysis indicator that compares the magnitude of recent price changes of a stock or index to another security or index.

ADX (Average Directional Index): A technical indicator used to measure the strength of a trend, not its direction.

MACD (Moving Average Convergence Divergence): A trend-following momentum indicator that shows the relationship between two moving averages of a security’s prices.