Chartist Talks: Sudeep Shah of SBI Securities for 2025 Laurus Labs Is advised to buy. “Larus Labs has outperformed the Frontline index over the past few weeks. Also, it is currently trading above its short and long-term moving averages,” he said in an interview with Moneycontrol. Furthermore, for 2025 Bullish on IPCA Laboratories and Triveni Engineering Are. However, he remains bearish on the Nifty FMCG index.
Sudip Shah, Head of Technical and Derivatives Research at SBI Securities said “Ipca Laboratories It formed a strong base near the 20-week EMA level and then resumed its uptrend. Weekly RSI 1 This stock is in a super bullish zone. At the same time, Triveni Engineering has given stage-2 cup pattern breakout on weekly scale. As the stock is trading near all-time highs, all moving averages and momentum-based indicators are pointing to a strong bullishness in the stock.”
Are you super bullish on Greaves Cotton?
In response to this, Sudeep Shah said that yes, this stock has given stage-2 cup breakout on weekly time frame. This breakout is higher than the 50-week average volume. Moreover, it has formed a big bearish candle on the breakout week, which gives strength to the breakout. As the stock is trading at its all-time high, all the moving averages and momentum-based indicators are indicating strong bullishness in the stock. Daily and Weekly RSI (Relative Strength Index) The RSI is in the super bullish zone as per the range shift rules. Therefore, a rise in Greaves Cotton is expected.
Is it time to buy Escorts Kubota?
On this Sudeep said that no, currently the stock is trading below its short and long term moving average. These averages are in falling mode. Apart from this, according to the daily RSI RSI range shift rules, the stock is in the super bearish zone. Therefore, it would be advisable to avoid escorts for now.
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Although volumes remain low, what are the chances of Nifty retracing back to November lows?
In the December series, Nifty futures witnessed a pullback rally in the first half of the month and reached a high of 24,930. However, later the index started falling again. Due to which the December series was the third consecutive series of negative returns. After a big fall of 4.77 per cent in the previous week, this week (ending December 27) was relatively dull. This week Nifty was seen trading in a limited range. The special thing is that Nifty formed Doji candlestick pattern in all the four trading sessions. This reflects the indecision prevalent in the market. The index hovered within a range of only 291 points, the smallest since June 18, 2024.
Currently, Nifty is trading below its 20, 50 and 100-day EMAs. All of them are trending downwards. In the last four sessions, Nifty has been hovering around its 200-day EMA (23694). Meanwhile, the Daily RSI remains in the bearish zone, lying below its signal line.
Talking about important levels, the zone of 23,550-23,500 will act as immediate support for Nifty. Any fall below 23,500 levels could lead to a sharp correction towards 23,200 levels. After which Nifty may fall to 22,900 in the short term.
On the upside, zone of 23,950-24,000 will act as an important resistance for Nifty. Any strong move above 24,000 levels will lead Nifty to a sharp pullback rally towards 24,300 levels. This is also where its 50 and 100-day EMA is.
Do you believe that the January series will prove to be a strong month for the market?
No, currently, the chart structure is pointing towards the market remaining bearish over the next few weeks. Keeping in mind the seasonality of the last 17 years, a negative trend has often been seen for Nifty in the month of January. On 11 occasions, the index has closed on a negative note with an average weakness of 4.79 per cent. Whereas on 6 occasions, it has closed on a positive note with an average gain of 5.67 per cent. The average return of Nifty in the January series has been minus 1.10 percent. Over the last 17 years, January has consistently shown an average volatility of 9 per cent for the Nifty index.
Has the FMCG index bottomed out? Will it be a star performer in 2025?
Responding to this, Sudeep said, No, it is not expected that Nifty FMCG will be a star performer in 2025. The index is currently trading below its short and long term moving averages, indicating an overall bearish trend. Indicators and oscillators confirm this weakness.
However, on the daily chart, the index is forming the Adam and Adam Double Bottom patterns. A strong move above 58800 could lead to a neckline breakout, potentially triggering a short-term pullback. Conversely, a drop below 55,400 could resume the downtrend.
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