stock market recommendations: : Sona BLW Precision ForgingsAnd Eicher Motors has been recommended as Top Stocks to Buy This week by Sudeep Shah, Head – Technical Research & Derivatives, SBI Securities. He also shared his outlook on Nifty and Bank Nifty:nifty viewBenchmark index Nifty staged a strong pullback rally last week, closing decisively above 24000 points with a strong gain of 5.89%. This marked its strongest weekly performance since February 2021 and signaled a meaningful shift in near-term market sentiment. Investor confidence improved significantly after the announcement of a two-week ceasefire between the US and Iran, which helped ease global geopolitical concerns. From its recent low of 22182, the index made a rapid comeback of over 1800 points, translating into an impressive recovery of 8.19% in just six trading sessions. However, the more important aspect of this move lies in the underlying drivers of strength rather than just the key figures.Encouragingly, the rally has been supported by a clear improvement in market participation. Market breadth strengthened significantly, pointing to broad buying interest across sectors and market capitalisations. Broader market indices led the rally, with both Nifty Midcap 100 and Nifty Smallcap 100 gaining over 7% during the week. Each formed a strong bullish candle on the charts, suggesting leadership is emerging beneath the surface and could contribute meaningfully to the broader market’s ongoing recovery.From a technical perspective, Nifty has moved above its 20-day exponential moving average, which has now started moving upwards – an early sign of near-term momentum improvement. Additionally, the previously falling slopes of the 50, 100, and 200-day EMAs are beginning to flatten out, indicating a possible change in the overall trend structure. Momentum indicators are also giving supportive signals. The daily RSI has reached around 54 points and is trading above its 9-day moving average, indicating strong buying momentum. At the same time, the MACD histogram shows a gradual increase in upward momentum, although the main question is whether this momentum can be sustained in the coming sessions.Looking ahead, these technical developments suggest that the pullback rally may extend further in the near term. If the positive momentum continues then Nifty is likely to test 24300 levels initially, followed by 24500 levels. On the downside, the area of 23650-23600 is expected to act as an important support zone, and a sustained hold above this zone will be necessary to maintain the current bullish tone.bank nifty viewThe banking benchmark index, Bank Nifty, has emerged as a clear outperformer in the past week, underscoring the strong leadership of the banking sector. The index recorded a sharp gain of 8.47% during the week, which is its strongest weekly performance seen in the last few years and reflects a decisive shift in sentiment.On the weekly chart, this strong rise has translated into the formation of a large bullish candlestick, indicating strong buying interest and a solid bounce off lower levels. Technically, the index is now trading comfortably above its 20-day exponential moving average, which points to a positive change in the short-term trend.Momentum indicators continue to confirm this improvement. The daily relative strength index (RSI) currently stands at 53.91 and remains in an ascending trajectory, indicating strengthening of bullish momentum along with improving expansion within the banking sector.Looking ahead, Bank Nifty is well positioned to extend its ongoing pullback rally. In the near term, if the positive momentum continues, the index may test 56700 levels, followed by 57500 levels. On the downside, the area of 54700-54600 is expected to act as an important support zone, and a sustained hold above this range will be crucial to maintain the current bullish bias.
Stock Recommendations:
Sona BLW Precision ForgingsSONACOMS has broken the downward sloping trendline on the daily chart, indicating a possible trend reversal. The breakout is supported by strong follow-through buying, reinforcing bullish sentiment. The stock also closed above the upper Bollinger Band, indicating strength as well as widening volatility. Momentum indicators support further upside, with the MACD line crossing above both the signal and zero lines. Overall, the alignment of price action and indicators suggests the possibility of continued growth in the near term. Therefore, we recommend accumulating the stock in the area of 556-551 with a stoploss of 530. On the positive side, there is a possibility of testing the 610 level in the short term.Eicher Motors Eicher Motors has recorded a sharp decline of nearly 15% in the last four sessions, after slipping below its 200-day EMA to as low as 6442. The stock has reclaimed key short- and long-term moving averages, indicating recovery in strength. Momentum indicators also support the recovery, with the RSI rebounding from the 40 zone, indicating renewed bullish momentum. Additionally, a close above the Bollinger Bands midline points to an extension of volatility, suggesting that a pullback is likely to increase in the near term. Therefore, we recommend accumulating the stock in the area of 7440-7380 with a stoploss of 7100. On the upside, it is likely to test the 8000 level in the short term.(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management are their own. These opinions do not represent the views of The Times of India)