Nifty 50 Faces Indecision: Expert Recommends CDSL and JBM Auto as Key Stocks for Next Week's Rally

Nifty 50 Faces Indecision: Expert Recommends CDSL and JBM Auto as Key Stocks for Next Week's Rally​

The Indian market is currently navigating a phase of technical indecision, highlighted by the formation of a weekly Doji candle in the Nifty 50. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, stated that while recent sentiment has been positive, neither bulls nor bears have yet gained clear control over the benchmark index. This volatility is observed even as Midcap and Smallcap indices continue to demonstrate superior performance in the broader market.

Nifty 50: Navigating Range-Bound Consolidation​

The technical indicators suggest a cautious outlook for the Nifty 50, despite it trading above both its 20-day and 50-day EMAs, and with RSI at 58 indicating a positive bias. Immediate support levels are critically placed between 23,850 and 23,800; a breach below 23,800 would expose the next key support at 23,500.

On the upside, technical analysts identify a vital resistance zone spanning from 24,150 to 24,200. A sustained breakout beyond this level is anticipated to pave the way for a rally targeting 24,500.

Bank Nifty Outlook: Trend Strength Amid Indecision​

Bank Nifty continues its winning streak, having outperformed broader market indices for the third consecutive week. This momentum is underpinned by a strong underlying trend, as the index remains firmly above all key short-term and long-term moving averages. Furthermore, since all constituent stocks are trading above their respective 20-day and 50-day EMAs, broad strength across the banking sector is apparent.

Momentum indicators remain strongly supportive for Bank Nifty, with the daily RSI holding in bullish territory. Looking ahead, the immediate resistance zone is set at 58,000 to 58,200, a decisive breakout of which could target 59,000 and 59,600. Conversely, support is anticipated between 57,000 and 57,100.

Stock Picks: CDSL Poised for Triangle Breakout​

Sudeep Shah has singled out Central Depository Services (CDSL) and JBM Auto as key picks for the upcoming week, citing strong bullish setups in both companies. CDSL is showing significant positive signs, poised potentially for a symmetrical triangle breakout on its daily chart. The stock has rallied nearly 16 percent from its recent low of ₹1,183 recorded on June 11 and continues to trade above all key moving averages.

The accumulation recommendation for CDSL is set in the zone of ₹1,360-1,375, with a stop loss defined at ₹1,315. In short term, it is likely to test the level of ₹1,470. JBM Auto has also confirmed a decisive breakout above a key horizontal trendline on the daily chart. The stock maintains a higher high-higher low structure and trades comfortably above its long and short-term moving averages. Accumulation advice for JBM Auto suggests buying in the zone of ₹720-730, with a stop loss at ₹700 and upside potential towards ₹780.

Focused Stock Analysis: Which Stocks to Watch?​

GE Vernova T&D has been exhibiting a consolidation breakout on its daily chart while trading in a higher high-higher low formation. The stock's RSI is in a rising mode, and the MACD line has crossed above the signal line, reinforcing the positive bias. The upmove is likely to extend further as long as the stock maintains support above the ₹5,240-5,220 zone.

Aurobindo Pharma also witnessed a successful breakout above a downward sloping trendline on its daily chart, supported by strong volumes. On the ADX indicator, DI+ crossed above DI-, suggesting that buyers are beginning to gain control over sellers in the stock. Continued upside is likely provided the stock sustains above the ₹1,450-1,445 zone.

Leela Palaces and Resorts hit a fresh all-time high on June 19 after breaking out of a broad sideways range. The bullish setup is reinforced by healthy volumes and the RSI surging past the 70 mark. The upmove is likely to continue as long as the stock holds above the ₹470-465 zone, despite potential profit booking concerns.

Piramal Finance has also successfully given a consolidation breakout on its daily chart. Despite a recent sideways phase, the 20-day EMA continued acting as dynamic support for the stock. The RSI is starting to move higher, and the gap between DI+ and DI- on the ADX indicator suggests strengthening buying interest. The up move can extend further if it sustains above the ₹2,070-2,060 zone.

Tata Capital demonstrated a strong follow through move after breaking out above a downward sloping trendline on its daily chart, accompanied by a sharp rise in volumes. The stock has closed above the upper Bollinger Band and displays a rising MACD histogram, supporting the positive bias. Continued bullish momentum is likely if the stock sustains above the ₹345-340 zone.

Caplin Point Laboratories continues to trade in a well established uptrend, maintaining a higher high-higher low formation. However, technical indicators suggest caution; the ADX has surged to its highest level since December 2024, and RSI is indicating deeply overbought territory. The broader trend remains bullish, but a phase of profit booking cannot be ruled out unless the stock holds above the ₹2,220-2,200 zone.