Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, Chennai Petroleum Corporation, and KPR Mill are the top stock picks for the upcoming week. Here’s his view on Nifty, Bank Nifty and the top stock picks with a 3-month horizon:Index View: NiftyThe benchmark index Nifty wrapped up the week on a flat and uneventful note, moving within a tight band of just 338 points — its narrowest weekly range since February 2023. This subdued price action points to a clear lack of conviction among market participants, as the index struggles to find fresh triggers for a directional move. The story was no different across the broader market. The Nifty Midcap 100 index mirrored this lethargy, clocking a range of only 606 points, its lowest weekly movement since November 2023. Meanwhile, the Nifty Smallcap 100 was even more muted, confined to a tight 257-point range which was the lowest weekly range since July 2023.Such compressed trading ranges across large-cap, mid-cap, and small-cap spaces underline a phase of market indecision and consolidation. And for intraday and short-term traders, this environment can be particularly frustrating. With volatility drying up and price moves becoming increasingly shallow, identifying tradable setups becomes challenging. Opportunities to ride quick momentum are scarce, and whipsaws are more common — making this one of the toughest phases for active traders.Yet, amid this sluggishness, the broader trend still leans bullish. The Nifty continues to trade above its key short and long-term moving averages, keeping the structural uptrend intact. But not everything is rosy under the surface. Momentum indicators are starting to flash warning signs. The daily RSI has slipped below the 60 mark and is heading lower, hinting at fading strength. The Fast Stochastic is now below the Slow line, indicating possible short-term weakness. Adding to the caution, the MACD histogram has been on a declining path for the past four sessions, further suggesting that momentum is cooling off.In short, while the longer-term trend is still intact, the market is currently caught in a low-energy zone — one that’s hard to trade and even harder to predict. Traders may be better off adopting a wait-and-watch approach until the next breakout or breakdown provides clarity. Talking about crucial levels, the 20-day EMA zone of 25250-25200 will act as immediate support for the index. On the upside, the zone of 25600-25650 will act as a crucial hurdle for the index. A decisive breakout on either side will lead to trending moves in the index. Bank Nifty ViewThe banking benchmark Bank Nifty scaled a fresh all-time high during Wednesday’s session, but the euphoria was short-lived as the index witnessed a mild throwback in the latter half of the week. It eventually settled above the 57000 mark, registering a weekly loss of 0.72%, and formed a bearish candle with a minor lower shadow.Despite this short-term pullback, the broader trend remains bullish, with the index comfortably trading above its key short and long-term moving averages. Going ahead, the 20-day EMA zone of 56600-56500 will act as immediate support for the index. As long as the index is trading above 56500 level it is likely to test the level of 57500, followed by 58200 in the short term. Stock Recommendations:
Chennai Petroleum Corporation stock has registered a decisive breakout above a horizontal trendline on the daily chart, backed by strong volumes, confirming the strength of the move. Importantly, it formed a sizable bullish candle on the breakout day, further validating bullish intent. It is currently trading well above its short and long-term moving averages, reflecting a strong underlying trend.Additionally, momentum indicators are aligned with the price action, pointing to sustained bullish momentum. Hence, we recommend to accumulate the stock in the zone of 775-765 level with the stoploss of Rs 730. On the upside, it is likely to test the level of 855 in the short term.
KPR Mill stock has marked the high of 1389 on May 09 and thereafter it has witnessed a correction, which was halted near its 50-day EMA level. The stock has formed a strong base near its 50-day EMA level and it has resumed its northward journey. On Friday, it has given a horizontal trendline breakout on the daily scale along with robust volume. Interestingly, the daily RSI surged above 60 mark for the first time after May 2025 and it is in rising mode. Hence, we recommend to accumulate the stock in the zone of 1190-1180 level with the stoploss of Rs 1140. On the upside, it is likely to test the level of 1260 in the short term.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
