Chartist Talk: Can confident bulls drive Nifty 50 beyond 23,500 next week? Sudeep Shah spots bullish momentum in 2 stocks

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities believes the short-term technical setup has turned constructive. Nifty has reclaimed its 20-day EMA, which is now gradually turning upward, while the daily RSI continues to trend higher, reflecting strengthening bullish momentum. According to him, for the higher-high, higher-low structure to sustain, Nifty 50 must decisively overcome the immediate hurdle placed around the 50-day EMA zone of 23,150-23,200. A successful breakout above this level could pave the way for a move towards 23,500 and increase the probability of reclaiming key medium-term moving averages. Sudeep Shah sees bullish momentum in Gland Pharma, and TVS Motor Company. "The alignment of price action and technical indicators suggests Gland Pharma could be poised for a breakout and further upside, while TVS Motor has witnessed a decisive breakout above its downward-sloping trendline, accompanied by a healthy surge in trading volumes, indicating strong buying interest," he said in an interview with Moneycontrol. Do you expect the higher-high, higher-low formation to continue in November? Can the market reclaim its medium- and long-term moving averages, given the strength witnessed in recent trading sessions? The possibility of the Nifty continuing its higher-high, higher-low formation in November has improved meaningfully following the recent pullback from lower levels. During October, the index traded in a narrow range despite elevated volatility and managed to close above the psychologically important 23,000 mark. More importantly, the monthly chart formed a small-bodied candle near a key upward-sloping trendline support after a strong bearish candle in the previous month, suggesting that selling pressure has started to subside. The short-term technical setup has also turned constructive. Nifty has reclaimed its 20-day EMA, which is now gradually turning upward, while the downward slope of the 50-day and 100-day EMAs has flattened considerably. This indicates that the corrective phase may be losing momentum. In addition, the daily RSI has moved above the 50 mark and continues to trend higher, reflecting strengthening bullish momentum. However, for the higher-high, higher-low structure to sustain, Nifty must decisively overcome the immediate hurdle placed around the 50-day EMA zone of 23,150-23,200. A successful breakout above this level could pave the way for a move towards 23,500 and increase the probability of reclaiming key medium-term moving averages. On the downside, the 22,800-22,750 zone remains a crucial support area. As long as the index holds above this zone, the ongoing recovery and improving market structure are likely to remain intact. What are your top two stock picks for the coming week? Gland Pharma Gland Pharma has been consolidating within the Rs 2,770-3,171 range since August 11. Despite the sideways price action, the stock continues to trade above key short- and long-term moving averages, indicating that the broader trend remains constructive. The RSI on both the daily and weekly charts has rebounded from around the 40 level, signalling renewed bullish momentum. Additionally, the stock has staged a strong rebound over the past five sessions from the Rs 2,780-2,770 zone, which has acted as a strong support previously. The alignment of price action and technical indicators suggests the stock could be poised for a breakout and further upside. Hence, the accumulation is recommended in the zone of Rs 3,085-3,105 with a stop-loss of Rs 3,010. On the upside, it is likely to test the level of Rs 3,300 in the short term. TVS Motor Company TVS Motor Company has witnessed a decisive breakout above its downward-sloping trendline, accompanied by a healthy surge in trading volumes, indicating strong buying interest. The RSI has staged a sharp recovery from 27.91 to 59.97, highlighting a significant improvement in bullish momentum. Additionally, the MACD continues to trade above the zero line, with expanding green histogram bars, signalling strengthening positive momentum. The ADX indicator has also turned favourable, with DI+ crossing above DI-, reflecting a clear shift in trend strength in favour of the bulls. Overall, the technical setup indicates potential for further upside momentum. Hence, the accumulation is recommended in the zone of Rs 4,180-4,210 with a stop-loss of Rs 4,080. On the upside, it is likely to test the level of Rs 4,470 in the short term. Do you see Bank Nifty convincingly reclaiming the 56,000 mark next week? Last week, the banking benchmark index Bank Nifty took support near its prior swing low and subsequently witnessed a pullback rally. The index eventually ended the week around the 54,700 level, registering a gain of 0.74 percent. However, it underperformed the frontline indices and formed a High Wave candle on the weekly chart, reflecting indecisiveness at current levels. On the daily chart, the index continues to trade below its key short-term and long-term moving averages, which remain in a downward trajectory, indicating that the broader trend is yet to turn positive. Meanwhile, momentum indicators and oscillators are exhibiting a neutral bias, suggesting a phase of consolidation and sideways movement. Going ahead, the 55,000-55,200 zone is likely to act as a crucial resistance area for the index. A sustained move above 55,200 could trigger an extension of the pullback rally towards 56,000, followed by 56,700 in the short term. On the downside, the 54,100-54,000 zone is expected to provide strong support and will remain critical for maintaining the current recovery structure. Would you consider adding to your positions in Ather Energy and Laurus Labs, which rallied 27 percent and 22 percent, respectively, this week? Ather Energy witnessed a downward-sloping trendline breakout earlier this week and extended its gains. The stock found support near its 20-week EMA and formed a sizeable bullish candle, reflecting strength in the underlying trend. Laurus Labs broke out of a tight consolidation range this week and witnessed a sharp upward move. The RSI is trending higher, indicating strong bullish momentum. Both stocks exhibit strong chart structures and are well-positioned to extend their upward momentum in the near term. Do you expect the uptrend in Zydus Lifesciences and Navin Fluorine International to continue next week? Zydus Lifesciences was consolidating in the Rs 1,086-1,232 range since July before witnessing a breakout this week and closing higher. The DI+ has crossed above DI- on the ADX indicator, reflecting the strengthening bullish momentum. Navin Fluorine International staged a sharp recovery of around 15.5 percent from its October 26 low of Rs 7,511. The stock has also reclaimed its 20-week EMA after closing below this key average last week. Both stocks exhibit strong price action structures and are likely to extend their upward momentum in the near term. Are you bullish on Coforge following its breakout above a key horizontal resistance level this week? Do you see further upside from here? Coforge has witnessed a horizontal trendline resistance breakout on the daily chart, clearing the crucial Rs 1,985-2,025 zone that had capped its upside multiple times since December 2024. The stock is trading comfortably above its key short- and long-term moving averages on both daily and weekly charts. The rising RSI indicates healthy bullish momentum, while the weekly ADX reflects improving trend strength. Additionally, the rising ratio line in Coforge/Nifty ratio chart signals sustained outperformance against the benchmark. The stock is well-positioned to extend its upward momentum in the near term. Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.