Top stocks to buy (AI image)
Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, the top stock picks for this week are LTIMindtree Ltd, and UltraTech Cement. Here’s his view on Nifty, Bank Nifty for the week starting January 19, 2026:Nifty View:After hitting a fresh alltime high of 26373 on January 5, the Nifty index has slipped into a corrective phase. The decline, however, has been orderly, taking support near the 100day EMA, a key technical zone that has held firm for the past five sessions. At present, the index is hovering around this level, reflecting consolidation rather than any signs of panic selling. On the weekly chart, Nifty has formed a Doji candle, highlighting indecision among market participants—largely influenced by the anticipation of Q3 earnings from heavyweight constituents such as Reliance Industries, HDFC Bank, and ICICI Bank. The key question now is whether this consolidation is simply a pause before the next upward leg, or a setup for a deeper corrective move.Technically, the 20day EMA continues to slope downward, while the 50day and 100day EMAs remain flat, underscoring the lack of strong trend direction. Momentum indicators echo this neutral setup—the daily RSI has been stuck within a narrow 38.55–42.84 band for five straight sessions, signalling subdued momentum and a clear wait-and-watch stance among traders. Such prolonged compression in momentum often precedes a decisive move, but the direction remains uncertain.Going forward, the upcoming earnings from major index heavyweights are expected to act as the primary catalyst for Nifty’s next directional move. On the upside, the 20day EMA zone of 25900–25950 will serve as a key barrier. A sustained move above 25950 could trigger a swift rebound toward 26200, with further potential to test 26500 in the short term. Conversely, the 25500–25450 range remains a critical support zone, and a decisive break below 25450 may accelerate the ongoing correction.Bank Nifty ViewBank Nifty continued its strong outperformance against the frontline indices for the second consecutive week. While the broader market remained largely flat, the banking benchmark gained 1.42%, further cementing its relative strength. On the weekly chart, the index has formed a bullish candle with a minor lower shadow, signalling steady buying interest at lower levels.The Bank Nifty–Nifty ratio chart has now reached a 132week high, reaffirming the sustained phase of outperformance. Technically, the index remains in a robust uptrend, supported by its position above all key moving averages. Momentum indicators also validate the positive setup, with the daily RSI holding above 60 and trending higher, indicating strengthening bullish momentum.Looking ahead, the Q3 earnings of heavyweights HDFC Bank and ICICI Bank, set to be released over the weekend, are expected to act as major catalysts and could play an important role in determining the index’s next directional move.In terms of key levels, the zone of 60400–60500 is likely to act as a significant resistance area. A decisive breakout above 60500 could pave the way for a sharp rally toward 61200, with an extended move possible up to 62000 in the near term. On the downside, the region of 59400–59300 will remain an immediate and crucial support zone for the index.
Stock recommendations:
LTIMindtree LtdLTIM has delivered a decisive downward-sloping trendline breakout on the daily chart, signalling a shift in trend. Over the last seven sessions, the stock has consistently held above its 50-day EMA, which continues to act as a strong dynamic support. Friday’s breakout was backed by a healthy surge in trading volumes, adding credibility to the move. Momentum indicators are supportive, with RSI jumping sharply and sustaining above 60, while MACD has crossed above both the zero line and its signal line, indicating strengthening bullish momentum. Hence, we recommend to accumulate the stock in the zone of 6,310-6,290 with a stoploss of 6,110. On the upside, it is likely to test the level of 6,740 in the short term.UltraTech CementULTRACEMCO has formed a sizable bullish candle on the daily chart and closed decisively above its previous swing high of 12,250, supported by a notable surge in volumes over the last two sessions. The 50-day EMA has provided reliable support in two of the last four sessions, reinforcing the short-term bullish structure, while also aligning with the Bollinger Band midline. Importantly, Bollinger Bands have begun to widen after a prolonged narrow phase, signalling expansion in volatility and the potential start of a trending move. RSI rising near 68 highlights strengthening bullish momentum. Hence, we recommend to accumulate the stock in the zone of 12,400-12,300 with a stoploss of 11,900. On the upside, it is likely to test the level of 13,260 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)
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