Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, Shyam Metalics and Energy Ltd, and Cipla are the top stock picks for this week. Here’s his view on Nifty, Bank Nifty for the week starting July 28, 2025:Nifty View:The benchmark Nifty index has continued its downward trajectory, extending its losing streak for the fourth consecutive week. This persistent weakness can be attributed to a combination of factors — the absence of strong positive triggers, Q1 earnings from key corporates coming below expectations, and lingering uncertainty on the global trade deal front, all of which have dampened investor sentiment.Last week, the index made a feeble attempt to rebound from the crucial support zone; however, the recovery lacked conviction and fizzled out quickly. On Wednesday, Nifty managed to close above its 20-day EMA, briefly reviving hopes of a turnaround. But the optimism was short-lived, as renewed selling pressure dragged the index back into negative territory.The bearish undertone deepened on Friday, when the index decisively broke below two critical technical levels — the 50-day EMA and the 61.8% Fibonacci retracement of its recent upswing from 24473 to 25669. This breakdown not only reflects fading bullish momentum but also signals growing nervousness among market participants. With no clear positive cues on the domestic or global front, the market appears vulnerable to further consolidation or downside in the near term.Talking about crucial levels, the 100-day EMA zone of 24600-24550 will act as immediate support for the index. Any sustainable move below the level of 24550 will lead to further correction up to the 24200 level. While on the upside, the 20-day EMA zone of 25100-25150 will be the crucial hurdle for the index. Bank Nifty ViewThe banking benchmark index, Bank Nifty, has relatively outperformed the broader frontline indices by closing the week on a mildly positive note, even as the overall market sentiment remained weak. Throughout the week, the index attempted to stage a recovery from lower levels, supported by selective buying in heavyweight banking names. However, it once again struggled to surpass the horizontal trendline resistance (57300-57400), which continues to act as a formidable barrier for the bulls.Despite the intraday attempts to break out, the index faced selling pressure near resistance zones and eventually retreated from higher levels. By the end of the week, Bank Nifty settled near the 56500 mark, registering a modest gain of 0.44%.From a technical standpoint, the weekly price action has resulted in the formation of a Gravestone Doji candlestick pattern, which typically signals indecision in the market and a potential reversal when it appears after an up-move. This pattern, coupled with the repeated failure to breach resistance, suggests caution in the near term, with the need for a strong breakout to resume upward momentum.Going ahead, the zone of 57300-57400 is likely to continue to act as a crucial hurdle for the index. While on the downside, the zoneStock Recommendations:Shyam Metalics and Energy LtdOn the weekly chart, the stock has confirmed a Cup and Handle pattern breakout, accompanied by robust volume, which adds credibility to the breakout. Importantly, the breakout candle is a large bullish candlestick, reflecting strong buying interest and conviction among market participants. As the stock is trading at an all-time high level, all the moving averages and momentum-based indicators are suggesting strong bullish momentum in the stock. Given this strong technical setup, the stock is well-positioned for a potential continuation of its upward move in the coming sessions. Hence, we recommend to accumulate the stock in the zone of 975-965 level with a stoploss of 920. On the upside, it is likely to test the level of 1100 in the short term.CiplaThe stock has registered a breakout above a downward sloping trendline on the daily chart, signalling a potential trend reversal. This breakout is further validated by volume activity, as the move was accompanied by volumes exceeding the 50-day average — a key confirmation of strength. Adding to the bullish sentiment, the stock has also managed to surpass both its short-term and long-term moving averages. Notably, the daily RSI has also broken above its own falling trendline, reinforcing the view that momentum is shifting in favour of the bulls. This confluence of price and momentum breakouts suggests that the stock may be poised for a sustained upward move. Hence, we recommend to accumulate the stock in the zone of 1540-1530 level with a stoploss of 1440. On the upside, it is likely to test the level of 1700 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)
