F&O Talk: Sudeep Shah Unveils Bullish Nifty Charts and Strategies for HDFC Bank and Sterlite Tech with 7 Stock Picks
The Indian stock market experienced a significant upswing on Friday, with the Sensex and Nifty indices both recording gains of 2%. This surge was driven by bolstering investor sentiment fueled by prospective developments in the US-Iran relations and a notable decrease in crude oil prices, which fell below the $90 threshold. The Sensex ascended over 1,695 points, closing at 75,527.95, while the Nifty50 rose by more than 461 points to end at 23,622.90. This rally contributed approximately Rs 10 lakh crore to the market capitalisation of BSE-listed entities, elevating the total to around Rs 462 lakh crore. Notably, Friday’s trading session saw the Nifty close above its 20-day exponential moving average for the first time since May 2026, indicating a resurgence in short-term momentum.
Despite earlier volatility in the week, marked by a trading range of 355 points for the Nifty, the index established a strong support base around the 61.8% Fibonacci retracement level of its prior rally. This technical fortitude, combined with the recent positive backdrop in global markets, has positioned the Nifty for potential upward movement towards 23,800 and subsequently the psychological barrier of 24,000. Conversely, the support zone around 23,350–23,300 is crucial, as sustaining above it signals bullish control. Furthermore, the improved Put-Call Ratio reflects a shift in market sentiment towards optimism, especially given the observed bullish divergence and the market’s ability to recover from prior selling pressure.
On the sectoral front, the Bank Nifty emerged as a standout performer, posting gains nearly reaching 5%. This index confirmed a breakout from a Symmetrical Triangle pattern, leading to substantial upward momentum reinforced by supportive technical indicators such as its movement above key moving averages. The Bank Nifty targets near the levels of 57,500 and 58,300, with firm support anticipated in the 56,200–56,000 range. In stark contrast, the Nifty IT index is exhibiting signs of weakness, trading below critical moving averages and showing bearish momentum. The resistance at 28,250–28,300 may prove to be a significant hurdle, with crucial support appearing at the 27,050–27,000 range.
In looking toward specific stocks, HDFC Bank’s recent recovery suggests potential for a cautious bullish outlook, contingent on sustained price levels above the Rs 730–725 support zone. Meanwhile, HFCL and Sterlite Technologies have seen pronounced corrections from recent highs, yet their structural integrity remains intact provided they hold above key support levels. The focus for investors should turn to stocks such as Avalon Tech, KEI Industries, and AU Small Finance Bank for short-term engagement, owing to their favorable technical setups. Overall, the current market landscape suggests cautious optimism, particularly in light of improving momentum indicators and global macro factors.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)