Chartist Outlook: Sudeep Shah's Predictions for Coforge, Nuvama Wealth, Hitachi Energy, and Dabur for the Upcoming Week

Nifty Continues to Hover Within a Narrow Trading Band

The benchmark Nifty index has remained confined within a narrow trading band for the second straight week, resulting in an indecisive weekly candle formation. Over the past 11 trading sessions, the index has broadly moved within the 24,516–23,797 range, highlighting the absence of a strong directional trend.

The absence of a clear trend can be attributed to weakness in heavyweight sectors such as Banking and IT, along with lingering uncertainty around the US-Iran tensions and continued fluctuations in crude oil prices. This uncertainty has kept investor sentiment cautious and restrained, despite the subdued movement in the benchmark index.

Broader Market Exhibits Strong Momentum

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In contrast to the Nifty, the broader market continues to exhibit strong momentum, with both midcap and smallcap indices outperforming the frontline benchmark. The Nifty Midcap 100 has scaled a fresh all-time high, showcasing strong momentum, while the Nifty still remains nearly 8 percent below its peak levels. The Nifty Smallcap 100 is currently trading at a 10-month high and has closed in the green for six consecutive weeks, forming a sizeable bullish candle during the latest week.

Key Technical Developments

Technically, the Nifty continues to reflect indecision across the charts. One of the key developments on the daily timeframe is the ongoing Bollinger Band squeeze, which points toward a significant contraction in volatility. Historically, such squeezes often precede a strong directional breakout in either direction. In addition, most key moving averages have started flattening out, while momentum oscillators are also indicating a lack of clear trend, reinforcing the ongoing sideways structure.

Key Support and Resistance Zones

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The 24,450–24,500 zone is likely to act as an immediate resistance area, while the 23,850–23,800 zone continues to remain an important support base. A breakout beyond this tightening range could potentially determine the market’s near-term trajectory.

Bank Nifty Continues to Lag

The banking benchmark index continues to lag the broader market in terms of relative performance. While the index attempted a recovery on Wednesday, it was unable to hold on to higher levels, indicating persistent selling pressure at rallies. On the weekly timeframe, it has formed a narrow-range candle with shadows on both ends, signalling indecision and the absence of a firm directional bias.

Key Support and Resistance Zones for Bank Nifty

The 54,300–54,200 region is likely to serve as a key support area. A decisive breakdown below 54,200 may intensify weakness and drag the index towards 53,500, with 53,000 emerging as the next downside level. On the higher side, the 50-day EMA band placed around 56,000–56,100 is expected to act as an immediate hurdle.

Top Picks for the Week

CG Power and Industrial Solutions

CG Power has delivered a strong flag and pole pattern breakout on the daily chart, signaling the continuation of its prevailing uptrend. The breakout is backed by a sharp rise in volumes, indicating strong participation and conviction among buyers. Trend strength remains firmly positive, with the ADX moving higher, reflecting strengthening bullish momentum.

Accumulate in the zone of Rs 870-875 with a stop-loss of Rs 845

Samvardhana Motherson International

Motherson has witnessed a sharp pullback of nearly 11 percent over the last four trading sessions, supported by a significant rise in volumes, indicating strong buying participation. The technical setup continues to strengthen, with the DI line widening, with DI+ placed comfortably above the DI- on the daily chart, signalling the bulls remain firmly in control of the trend.

Accumulate in the zone of Rs 130-135 with a stop-loss of Rs 128

Coforge and Nuvama Wealth

Nuvama has formed a flag and pole pattern on the daily chart, supported by a strong follow-through move. The RSI is in a rising mode, indicating strong bullish momentum. Additionally, the DI lines on the ADX indicator have widened, with DI+ placed comfortably above DI-, signalling strong buyers’ control.

Coforge closed above its previous swing high of Rs 1,335 on Friday.

Dabur

Dabur has been gradually inching higher, witnessing a pullback of nearly 21 percent since the low of Rs 403 recorded on April 2. Recently, the stock also gave a flag-and-pole pattern breakout on the daily chart and moved higher on the back of strong volumes.

Hitachi Energy

Since the breakout from the Rs 26,325–23,400 range on April 9, Hitachi Energy has witnessed a steady up move of nearly 25 percent. The stock is currently trading significantly above its key short and long-term moving averages, indicating a strong underlying trend.

Comparison of Nifty Midcap 100 and Nifty Smallcap 100 Performance

Note: The comparison is based on the current levels and previous highs of the Nifty Midcap 100 and Nifty Smallcap 100 indices. The Nifty Midcap 100 has scaled a fresh all-time high, showcasing strong momentum, while the Nifty Smallcap 100 is currently trading at a 10-month high.