Stock market recommendations: APL Apollo Tubes, and HDFC Asset Management Company are Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities’ top stock picks for this week. Below are his stock picks and also views on Nifty.Nifty ViewThe benchmark index Nifty continues to inch higher; however, this phase of the rally is notably different, as the spotlight has shifted away from the headline index. While Nifty has extended its pullback rally for the second consecutive week and closed in the green, the real strength is emerging beneath the surface. The broader markets have taken the lead, with Nifty Midcap 100 and Nifty Smallcap 100 delivering a robust rally and clearly outperforming the frontline index. Both indices have decisively moved above their key moving averages, signalling trend strength, whereas Nifty is still trading below its 100day and 200day EMA. Most importantly, Nifty Midcap 100 is now just a short distance away from its alltime high, suggesting that the next leg of opportunity may be unfolding beyond the conventional largecap space.Focusing back on Nifty, the index has been sustaining above its 50day EMA for the last three trading sessions, while the 20day and 50day EMA have started to edge higher, reflecting improvement in the shortterm trend. Meanwhile, the downward momentum in the 100day and 200day EMA has slowed considerably, indicating a stabilisation in the mediumterm structure. Momentum indicators further support the constructive bias, with the daily RSI trading above the 57 mark and moving higher, and the daily MACD histogram signalling strong bullish momentum.Collectively, these technical factors suggest that the pullback rally is likely to continue in the short term. On the upside, the 24650–24700 zone is expected to act as a crucial hurdle for the index. A sustainable breakout above 24700 could lead to an extension of the pullback rally towards 25000, followed by 25200 in the near term. On the downside, the 24050–24000 zone will serve as immediate support, and as long as the index remains above the 24000 mark, the ongoing pullback rally is likely to stay intact.Bank Nifty ViewThe banking benchmark Bank Nifty also ended the week on a positive note, indicating the continuation of its ongoing pullback rally. However, over the last three trading sessions, the index has struggled to decisively cross its 200day EMA, suggesting a phase of consolidation near a key long-term resistance zone. This price behaviour reflects hesitation at higher levels and points towards a pause in momentum after the recent recovery.This consolidation largely indicates a degree of caution among market participants, as investors appear to be awaiting clarity on the Q4 earnings outcome of major banking heavyweights, namely ICICI Bank and HDFC Bank. With both results scheduled over the weekend, the index is likely to witness a directional move post the earnings announcements, depending on earnings performance and management commentary.From a technical perspective, the index continues to maintain a constructive short-term setup, as it is trading above its 20day and 50day EMA, reflecting underlying strength. Momentum indicators remain supportive, with the daily RSI placed above the 55 level and trending higher, suggesting improving buying momentum and positive shortterm bias.Looking ahead, the 57000–57100 zone is expected to act as a crucial resistance area, as it coincides with both the prior swing high and the 100day EMA, making it an important supply zone. A sustainable move above 57100 could lead to a further extension of the pullback rally towards 57800, followed by 58500 in the short term. On the downside, the 55800–55700 zone is placed as an important support band, and any dip towards this region is likely to attract buying interest as long as the structure remains intact.Stock recommendations:APL Apollo TubesAPL Apollo Tubes has shown strong bullish intent after a 14.5% pullback from its early April lows near the 200-day EMA, indicating solid support at lower levels. The recent consolidation between 2072–1961 acted as a base, with the stock now delivering a decisive breakout on strong footing. A positive DI crossover on ADX signals clear buyer dominance, while the MACD nearing a move above the zero line with rising histogram bars points to strengthening momentum.The overall setup suggests the stock is well-positioned to extend its uptrend in the near term. Hence, we recommend to accumulate the stock in the zone of 2110-2090 with a stoploss of 2020. On the upside, it is likely to test the level of 2255 in the short term.HDFC Asset Management CompanyHDFC Asset Management Company has exhibited strong bullish momentum, closing Friday’s session with an impressive 4.89% gain. The stock has surged nearly 26% from its March lows, indicating robust buying interest. Momentum indicators remain firmly supportive, with RSI sustaining above 60, reflecting strength. Additionally, a positive DI crossover on ADX highlights clear buyer dominance, while rising MACD histogram bars with the MACD line above the zero mark further reinforce the ongoing uptrend. The overall structure suggests the stock is well-positioned to extend its upward trajectory. Hence, we recommend to accumulate the stock in the zone of 2800-2770 with a stoploss of 2690. On the upside, it is likely to test the level of 2990 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)
