Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, Apollo Tyres, and Nykaa are the top stock picks for this week. Here’s his view on Nifty, Bank Nifty for the week starting August 25, 2025:Nifty ViewLast week, the benchmark index Nifty began the week on a strong footing, supported by a series of positive macroeconomic and policy cues. The rally was largely attributed to S&P Global Ratings upgrading India’s sovereign outlook, which boosted investor sentiment around the country’s economic prospects.Additionally, Prime Minister Narendra Modi’s announcement of next-generation GST reforms, expected to be implemented by Diwali, added further strength to the rally. These reforms are aimed at simplifying the tax regime and easing the burden on consumers and MSMEs, thereby fostering broader economic growth.The positive momentum continued through the week, pushing the index to a high of 25153 by Thursday. However, despite the strong upmove, Nifty was unable to decisively clear the 61.8% Fibonacci retracement level of the previous corrective move (from 25669 to 24337). This key resistance level led to profit-taking on Friday, resulting in the formation of a bearish candlestick with a long upper shadow, typically indicating selling pressure at higher levels.On the daily chart, the index has formed an Evening Star candlestick pattern, which is generally considered a bearish reversal signal. This, combined with the rejection at a crucial Fibonacci level, suggests that the bulls may be losing momentum, and a phase of consolidation or a corrective move could unfold unless fresh positive triggers emerge. Notably, during this pullback rally, the RSI failed to move past the 60 mark, indicating limited strength in momentum.Looking ahead, the 100-day EMA zone of 24650–24600 is expected to act as a key support area for the index. On the upside, the 25050–25100 zone will serve as a critical resistance. A decisive move beyond either of these levels could set the tone for the next directional trend in the index.Bank Nifty ViewBank Nifty continued to underperform the broader market last week, reflecting ongoing weakness in banking stocks. After touching a weekly high of 56156, the index saw a sharp decline of over 1000 points, eventually closing at 55150, down 0.35% for the week. This decline led to the formation of a large bearish candle on the weekly chart, highlighting the dominance of sellers throughout the week.The relative weakness is also evident in the Bank Nifty/Nifty ratio, which has slipped to a 65-day low, underscoring the sector’s lag compared to the broader market. From a technical standpoint, the index is now trading below its 20-day and 50-day EMAs, both of which are trending downward — a sign of weakening short- to medium-term momentum.Adding to the cautious outlook, the daily RSI is nearing the 40 mark, indicating fading internal strength and increasing downside risk. Unless a strong reversal or positive trigger emerges, the index may remain under pressure in the near term.Looking at key levels, the 54900–54800 zone will act as immediate support. A sustained move below 54800 could open the door for further downside toward 54300, followed by the 200-day EMA at 53544. On the upside, the 55600–55700 zone will serve as a crucial resistance area for the index.Stock recommendationsApollo TyresThe stock has broken out of a falling channel pattern last week, signalling a potential trend reversal. The breakout was accompanied by strong volume, lending credibility to the move. On the weekly chart, the stock has formed a sizeable bullish candle — its first significant positive close since May 2025, indicating renewed buying interest. Technically, the stock has also moved above its key moving averages on both the daily and weekly timeframes, reinforcing the bullish setup. Additionally, the daily RSI is hovering near the 60 mark, suggesting improving momentum. Overall, the combination of pattern breakout, volume confirmation, and improving momentum indicators points to a positive short-term outlook for the stock. Hence, we recommend to accumulate the stock in the zone of 466-462 level with a stoploss of Rs 445. On the upside, it is likely to test the level of 510 in the short term.NykaaLast week, the stock witnessed a breakout from a Stage-2 cup pattern on the daily chart, supported by robust volume, confirming strong buying interest. This breakout marks a significant technical development, especially as the stock is now trading near its all-time high, reflecting strong bullish sentiment. From a trend perspective, the stock is well-positioned above all its key moving averages on both the daily and weekly timeframes, indicating a well-established uptrend. Moreover, momentum indicators are aligned with the bullish view, with the RSI firmly in bullish territory across both timeframes, suggesting sustained strength and room for further upside. Given the combination of pattern breakout, volume confirmation, and strong momentum, the stock appears poised for continued outperformance in the near term. Hence, we recommend to accumulate the stock in the zone of 225-223 level with a stoploss of Rs 215. On the upside, it is likely to test the level of 250 in the short term.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
