SBI Securities Identifies Top Stock Picks for the Week
Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, has revealed his top stock recommendations for this week. He highlights LTIMindtree Ltd and UltraTech Cement as key picks for investors. Shah also provides a detailed technical analysis of the Nifty and Bank Nifty indices for the week beginning January 19, 2026.
Nifty Index Analysis: Consolidation Phase Continues
The Nifty index reached a fresh all-time high of 26,373 on January 5. Since then, it has entered a corrective phase. This decline has been orderly, with the index finding support near the 100-day Exponential Moving Average. This key technical zone has held firm for the past five sessions.
Currently, the index is hovering around this level. This reflects consolidation rather than panic selling. On the weekly chart, Nifty has formed a Doji candle. This pattern highlights indecision among market participants. The anticipation of Q3 earnings from heavyweight constituents like Reliance Industries, HDFC Bank, and ICICI Bank is a major influence.
The key question now is whether this consolidation is a pause before the next upward move or a setup for a deeper correction. Technically, the 20-day EMA continues to slope downward. The 50-day and 100-day EMAs remain flat. This underscores the lack of a strong trend direction.
Momentum indicators echo this neutral setup. The daily RSI has been stuck within a narrow 38.55 to 42.84 band for five straight sessions. This signals subdued momentum and a clear wait-and-watch stance among traders. Such prolonged compression often precedes a decisive move, but the direction remains uncertain.
Going forward, upcoming earnings from major index heavyweights are expected to act as the primary catalyst for Nifty's next directional move. On the upside, the 20-day EMA zone of 25,900 to 25,950 will serve as a key barrier. A sustained move above 25,950 could trigger a swift rebound toward 26,200. Further potential exists to test 26,500 in the short term.
Conversely, the 25,500 to 25,450 range remains a critical support zone. A decisive break below 25,450 may accelerate the ongoing correction.
Bank Nifty View: Strong Outperformance Continues
Bank Nifty continued its strong outperformance against the frontline indices for the second consecutive week. While the broader market remained largely flat, the banking benchmark gained 1.42%. This further cements its relative strength.
On the weekly chart, the index has formed a bullish candle with a minor lower shadow. This signals steady buying interest at lower levels. The Bank Nifty to Nifty ratio chart has now reached a 132-week high. This reaffirms the sustained phase of outperformance.
Technically, the index remains in a robust uptrend. It is supported by its position above all key moving averages. Momentum indicators also validate the positive setup. The daily RSI holds above 60 and is trending higher. This indicates strengthening bullish momentum.
Looking ahead, the Q3 earnings of heavyweights HDFC Bank and ICICI Bank are set to be released over the weekend. These are expected to act as major catalysts. They could play an important role in determining the index's next directional move.
In terms of key levels, the zone of 60,400 to 60,500 is likely to act as a significant resistance area. A decisive breakout above 60,500 could pave the way for a sharp rally toward 61,200. An extended move is possible up to 62,000 in the near term.
On the downside, the region of 59,400 to 59,300 will remain an immediate and crucial support zone for the index.
Stock Recommendations: LTIMindtree Ltd
LTIM has delivered a decisive downward-sloping trendline breakout on the daily chart. This signals a shift in trend. Over the last seven sessions, the stock has consistently held above its 50-day EMA. This continues to act as a strong dynamic support.
Friday's breakout was backed by a healthy surge in trading volumes. This adds credibility to the move. Momentum indicators are supportive. The RSI jumped sharply and is sustaining above 60. The MACD has crossed above both the zero line and its signal line. This indicates strengthening bullish momentum.
Hence, we recommend accumulating the stock in the zone of 6,310 to 6,290 with a stoploss of 6,110. On the upside, it is likely to test the level of 6,740 in the short term.
Stock Recommendations: UltraTech Cement
ULTRACEMCO has formed a sizable bullish candle on the daily chart. It closed decisively above its previous swing high of 12,250. This move was supported by a notable surge in volumes over the last two sessions.
The 50-day EMA has provided reliable support in two of the last four sessions. This reinforces the short-term bullish structure. It also aligns with the Bollinger Band midline. Importantly, Bollinger Bands have begun to widen after a prolonged narrow phase. This signals expansion in volatility and the potential start of a trending move.
The RSI is rising near 68. This highlights strengthening bullish momentum. Hence, we recommend accumulating the stock in the zone of 12,400 to 12,300 with a stoploss of 11,900. On the upside, it is likely to test the level of 13,260 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.
