SBI Securities’ Sudeep Shah Flags Four Buoyant Picks, Telecom Caution, Bank Overbought Signal
As Nifty’s technical tilt grows bearish, Shah zeroes in on EID Parry, Prestige Estates, SBFC Finance, and Ramco Cements—while advising to sidestep Bharti Airtel and heeding an overbought warning on RBL Bank.
Bullish Breakouts Signal Fresh Upside
EID Parry and Prestige Estates have flashed robust breakout patterns, underpinned by volume surges and relative strength:
- EID Parry shattered its consolidation, surging on heavy volumes—an emphatic sign of renewed investor faith.
- Prestige Estates rebounded neatly from its 34-day EMA support, with subdued throwback volumes reinforcing a healthy pullback.
SBFC Finance & Ramco Cements: Trend-Strength Confirmed
Both names delivered decisive breakouts with volume conviction, reinforcing their upward trajectory:
- SBFC Finance rides a sustained uptrend, buoyed by rising moving averages.
- Ramco Cements continues to outperform, with momentum oscillators entrenched in bullish territory.
Telecom Stock on Sidelines: Avoid Bharti Airtel
After an 81% rally over 24 weeks, Bharti Airtel shows signs of profit-booking:
- The stock slipped below its 20-day EMA, signalling a short-term bearish turn.
- High-volume corrections suggest bulls are pausing—best to wait for a firmer base.
RBL Bank: Rounding Bottom vs. Overbought Warning
A potential rounding bottom on the weekly chart hints at a long-term reversal—but caution is warranted:
- A breakout above the neckline would validate the pattern and invite fresh buying.
- Yet, the weekly RSI near 80 flags an extreme overbought condition that may trigger a consolidation.
Nifty & Bank Nifty: Testing Key Supports
The broader indices grapple with emerging weakness:
- Nifty 50 slipped under its 20-day EMA, with RSI and MACD turning south—immediate support lies at 24,900–24,850.
- Bank Nifty hovers near a double-bottom and an upward trendline, but confirmation depends on a neckline breakout above ~57,200.
“Technical caution reigns, and stock-specific opportunities will lead the next leg of the rally,” Shah notes, urging a measured approach amid tariff uncertainty and earnings season.
