Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, the top stock picks for this week are CESC, and Indian Bank. Here’s his view on Nifty, Bank Nifty for the week starting January 5, 2026:Nifty ViewIndian equities kicked off the new calendar year on a strong note, with the Nifty scaling a fresh alltime high. After topping out at 26325 on December 1, 2025, the index slipped into a consolidation phase, where Nifty traded in a narrow range of 633 points, marking its tightest monthly range since August 2023.Over the last four sessions, momentum shifted decisively in favor of the bulls. From the recent swing low of 25878, the index climbed nearly 450 points, largely supported by strength in heavyweight counters. Participation indicators also improved, with Nifty Futures rollover rising to 72.29% in the December series, compared with 68.77% in November and slightly above the three-month average of 72.28%, reflecting continued trader confidence and willingness to carry positions forward.Friday’s robust rally pushed the daily RSI past the 60 level, signaling firming momentum and increasing prospects of further upsides. Reliance Industries played a notable role in the week’s gains, advancing 2.12%.On the sectoral front, metals led the charge, with the Nifty Metal index jumping 5.7% amid broad-based buying across constituents. However, the overall gains were partially capped by a steep decline in ITC, which tumbled 13.39% after the government notified a substantial increase in cigarette excise duties.Looking ahead, based on the current chart setup, the index appears poised to extend its upward move, with potential to test 26500 and subsequently 26700 in the near term. On the downside, the 26150–26100 band is expected to act as immediate support.Bank Nifty ViewBank Nifty continued its strong upward momentum last week, outperforming the headline indices with a solid gain of nearly 2%. The index confirmed a breakout from a falling channel on the daily chart—an important technical development that signalled a shift in sentiment—and followed it up with a sharp upside move. This breakout also helped the index register a new all-time high, underscoring the strength and durability of the prevailing uptrend.The technical setup remains constructive. The daily RSI has climbed to 67.55 and is trending higher, reflecting firm momentum. Meanwhile, the MACD histogram has turned positive, supporting the bullish narrative. The daily Stochastic oscillator is also aligned with the ongoing up move, indicating that buying pressure continues to dominate.In this backdrop, Bank Nifty is expected to extend its upward trajectory in the near term, with upside potential toward 60600 and subsequently 61200. On the downside, the 59700–59600 band is likely to act as immediate support. A sustained hold above this zone should help preserve the positive structure and limit any short-term pullbacks.
Stock recommendations:
CESCCESC has given a decisive breakout above its downward-sloping trendline on the daily chart, with today’s move supported by a noticeable surge in volumes, indicating strong participation from buyers. The RSI has jumped sharply from 39 to 61 over the last four trading sessions, signaling a swift shift in momentum from bearish to bullish.Additionally, DI+ crossing above DI- on the ADX suggests emerging trend dominance by buyers. The stock has also closed above the upper Bollinger Band, highlighting strong bullish momentum and the potential start of an expansionary move. Hence, we recommend to accumulate the stock in the zone of 176-174 with a stoploss of 165. On the upside, it is likely to test the level of 189 in the short term.Indian BankIndian Bank witnessed a decisive breakout from its 14-session consolidation range of 764–796 on 30th December, supported by a sharp surge in volumes, confirming strong buying interest. Post the breakout, the stock has seen a solid follow-through over the next three trading sessions, indicating acceptance of higher levels and sustained demand. The stock has closed above the upper Bollinger Band for three consecutive sessions, signaling strong momentum and an expansion phase. Momentum indicators remain supportive, with MACD crossing above the signal line alongside rising green histogram bars, while RSI is trending higher and currently placed at 66, reinforcing the bullish outlook. Hence, we recommend to accumulate the stock in the zone of 862-856 with a stoploss of 830. On the upside, it is likely to test the level of 920 in the short term.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
