SBI Securities Analyst Sets Nifty Support at 23,050, Names 5
Sudeep Shah of SBI Securities said the Nifty faces key support at 23,000-23,050 and resistance at 23,500. He provided technical outlooks for Nifty, Bank Nifty, Nifty IT, and several Tata group stocks, also naming five stocks that look positive on charts.
Analyst Sudeep Shah of SBI Securities said the Nifty index faces a key support zone between 23,000 and 23,050. The benchmark fell for a sixth consecutive week, closing with a marginal loss of 0.22%.
Shah, the Vice President and Head of Technical & Derivatives Research at SBI Securities, spoke to ETMarkets. He said a decisive break below 23,000 could push the index toward 22,700. On the upside, he identified the 10-day exponential moving average zone of 23,450-23,500 as a key hurdle.
Technical Indicators and Options Data
The daily Relative Strength Index (RSI) for the Nifty rebounded from a low of 22.23 to 34.17, suggesting the correction's intensity has moderated. Shah noted a bullish crossover in the RSI, indicating a potential short-term pause in the downtrend.
For the current weekly options expiry, Shah pointed to substantial open interest. The 23,400 Call strike poses strong resistance, followed by the 24,500 Call. On the Put side, the 23,300 strike holds the highest open interest, indicating support, followed by the 23,200 Put.
Sectoral Outlook: Nifty IT and Bank Nifty
Shah said the Nifty IT Index is trading below its key moving averages with bearish momentum. Its RSI has slipped below 40. The index faces immediate resistance in the 29,300-29,400 zone.
Bank Nifty has been consolidating within a range of 55,699 to 56,996 for seven sessions. Shah stated the index continues to trade below its key averages. The Average Directional Index (ADX) has started to rise, indicating bearish trend strength. He said the trend will likely remain sideways to bearish as long as it trades below the 200-day EMA zone of 56,700-56,800.
Trading Strategy for Tata Group Stocks
Shah provided technical views on four Tata group stocks. He said Tata Chemicals faced resistance around its 100-week EMA zone of Rs 805-810 after a two-day pullback. Tata Consultancy Services (TCS) remains in a downtrend, with its 20-week EMA zone of Rs 2,310-2,320 acting as resistance.
Tata Motors Passenger Vehicles (PV) also remains in a downtrend, with immediate resistance seen at Rs 320-325. Tata Investment Corporation has been moving in a range between Rs 616 and Rs 762 since late April, awaiting a breakout for directional cues.
| Stock | Key Level / Zone | Technical Bias |
|---|---|---|
| Tata Chemicals | Rs 805-810 (100-week EMA) | Bearish below resistance |
| TCS | Rs 2,310-2,320 (20-week EMA) | Bearish below resistance |
| Tata Motors PV | Rs 320-325 | Bearish below resistance |
| Tata Investment Corp | Rs 616-762 range | Sideways, awaiting breakout |
Five Stock Picks for the Week
Based on technical charts, Sudeep Shah named five stocks that look positive for the coming week. The stocks are Sona Blw Precision Forgings, Eternal, Lumax Auto Technologies, Eicher Motors, and Indian Hotels Company.
The views were attributed to the respective SEBI-registered Research Analyst and brokerage, as per the source disclaimer.
