Market Insights from Sudeep Shah of SBI Securities
Sudeep Shah, head of technical and derivative research at SBI Securities, has shared his insights on the Indian stock market, particularly focusing on the Nifty index and select stocks like PVR Inox and Tech Mahindra. With over 17 years of experience, Shah analyzes market patterns and provides forecasts that can help investors make informed decisions. Let’s delve into his market outlook and stock recommendations.
Nifty Index Predictions
According to Sudeep Shah, the Nifty index is on a bullish path and is anticipated to reach levels between 25,600 and 25,650 soon. He suggests that in the short term, the index could even surpass the significant 26,000 mark. The immediate support levels for Nifty are identified at 25,200-25,160, and a further drop would find support around 24,900.
Recent Performance and Support Levels
Shah points out that the Nifty index faced a low of 24,753 points last week but rebounded strongly, establishing a new peak. This upward movement was supported by a crucial gap zone formed in early August that previously acted as a resistance. The index displayed strength by bouncing back from the 20-day EMA (Exponential Moving Average), closing above 25,400 due to substantial buying from foreign institutional investors (FIIs) amounting to an impressive ₹7,695 crore.
Stocks to Watch: PVR Inox and Tech Mahindra
Sudeep Shah has high expectations for both PVR Inox and Tech Mahindra this week. He notes that PVR Inox has recently shown positive momentum after emerging from a prolonged consolidation period. Meanwhile, Tech Mahindra appears to be gaining strength, indicated by a bullish candle formation on its weekly chart, suggesting that buying opportunities exist at lower price points.
Potential for Nifty to Cross 26,000
When asked if Nifty would cross the 26,000 point threshold before facing any corrections, Sudeep reaffirmed his positive outlook. The current bullish trend indicates a strong market sentiment supported by large-cap stocks and significant FII investments.
Bank Nifty’s Resilience and Future Outlook
Shah also discussed the Bank Nifty, which has shown resilience recently. Last week, it found support around its 100-day EMA near levels of 50,300 and showcased remarkable strength, closing above 51,900 points. With a notable increase of 2.69%, Bank Nifty formed a large bullish engulfing candlestick, indicating ongoing upward momentum. It is projected that Bank Nifty may reach levels of 52,800 and eventually 53,300, with support now established in the range of 51,400-51,350.
Wipro’s Strong Bullish Momentum
Sudeep Shah highlighted Wipro as a key stock to monitor, noting it as the top-performing frontline IT stock last week with a gain of 5.76%. The stock formed a strong bullish candle on the weekly chart, and momentum indicators like the RSI (Relative Strength Index) show potential for continued upward movement. Wipro is expected to surpass its previous high of ₹579 and may target levels of ₹595-600 shortly, with downside support identified at ₹524.
Conclusion
In summary, Sudeep Shah’s analyses indicate a robust bullish trend in the Nifty and Bank Nifty, along with specific stock recommendations that investors may want to consider. While upward movements are encouraging, staying aware of market fluctuations and potential corrections is advisable. Investors should consult with certified experts to tailor their strategies effectively.
