Top Stock Picks for Next Week: Bajaj Finance and Coforge as Nifty Aims for Breakout
Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, shares his top stock picks for the upcoming week, including Bajaj Finance and Coforge, as the Nifty eyes a potential breakout.
Bajaj FinanceCoforgeNiftyGmdcHindustan AeronauticsReal EstateSep 14, 2025
Bajaj Finance experienced a downward sloping trendline breakout on September 10, followed by strong follow-through buying. On the weekly chart, Coforge has formed a strong bullish candle and is on the verge of a consolidation breakout.
On the other hand, given the sharp rise in GMDC's price in recent trading sessions and indicators in the overbought zone, the stock may take a breather or undergo a period of brief consolidation before resuming its upward move. It is advisable to be cautious at the current level, according to Shah.
Additionally, the Nifty India Defence index has given a downward sloping trendline breakout on the daily chart and has surged above key moving averages, which are now beginning to slope upwards—a bullish sign.
When asked about the potential for the Nifty to continue its rally toward 25,500–26,000 in the remaining part of the September series, Shah noted that the benchmark Nifty index has ended the week on a strong footing for the second straight week. Over the past fortnight, the index has climbed nearly 700 points, closing at its highest weekly level in the last eight weeks. This reflects improving market sentiment and a strengthening technical structure.
The Nifty is nearing a potential breakout from a Symmetrical Triangle pattern on the daily chart, a formation that often signals an impending sharp move. The index is comfortably trading above its key short-term and long-term moving averages, both of which are beginning to trend upward—a positive sign for the bulls.
Momentum indicators are also turning favorable. The daily RSI has crossed the 60 level for the first time since July 2025, indicating building strength. Additionally, the MACD remains in a bullish crossover, and a rising MACD histogram further supports the case for upward momentum. Market breadth has also improved notably, with 82% of Nifty stocks trading above their 20-day EMA and 76% above the 50-day EMA—signaling broad-based market participation.
With a combination of constructive technical indicators and increasing internal strength, Nifty appears poised for a breakout. In terms of levels, the 25,150–25,200 zone is expected to act as immediate resistance. A decisive move above 25,200 could open the door for a rally toward 25,500, and potentially 25,700 in the near term. On the downside, the 24,950–24,900 support zone is likely to act as a strong buffer in the event of any short-term pullback.
Regarding the Bank Nifty, which has been underperforming the Nifty 50, Shah suggests that the banking benchmark index has extended its pullback for the second straight week, indicating a potential short-term recovery after the recent downtrend. From its recent low of 53,561, the index has bounced back by more than 1,200 points over the last two weeks, suggesting a mild improvement in overall sentiment.
Despite this rebound, the index continues to trade below its 50-day and 100-day exponential moving averages, which remain key resistance levels. A decisive close above these averages will be essential to confirm the beginning of a more sustained upward trend. On the momentum front, the daily RSI remains largely range-bound but is gradually ticking higher, hinting at a slow but steady buildup in strength. A breakout beyond the 60 level on the RSI could reinforce the bullish momentum.
Looking ahead, the 55,100–55,200 zone is likely to serve as immediate resistance. A convincing move above 55,200 could extend the ongoing recovery toward 56,000 in the short term. On the downside, the 54,400–54,300 area is expected to provide strong support in case of any near-term weakness.
Considering the strong charts, Shah believes it is the right time to buy shares of Hindustan Aeronautics (HAL) and Bharat Dynamics (BDL). The Nifty India Defence index has given a downward sloping trendline breakout on the daily chart, signaling a shift in trend. The index has also surged above its key moving averages, which are now beginning to slope upwards—a bullish sign. Notably, the daily RSI has crossed the 60 mark for the first time since June 2025, indicating strengthening momentum. With these signals aligning, the index is likely to continue its northward journey in the coming sessions.
HAL and BDL have both given a double bottom neckline breakout on Friday, supported by robust volume. Though the performance of BDL is relatively weaker compared to HAL, as indicated by a falling ratio line in the BDL/HAL ratio chart, the chart structure looks strong. The RSI has been on the rising mode. As per the measured rule target of the double bottom pattern, HAL is likely to move higher until the Rs 4,900-4,930 zone. On the other hand, BDL can also move higher until the Rs 1,630 level, which is where the previous swing high is placed for the stock.
Bajaj Finance has given a downward sloping trendline breakout on September 10 and has seen strong follow-through buying. The stock has risen nearly 12% in the last 7 trading sessions and is trading nearly 10% above its 50-day EMA of Rs 913. The RSI is in a bullish zone and is in rising mode. On the other hand, the ADX line has started to rise, confirming a strong trend and that the underlying trend has become robust. Therefore, Shah recommends accumulating the stock in the zone of Rs 1,000-1,010 levels with a stop-loss of Rs 975. On the upside, it is likely to test the level of Rs 1,075 in the short term.
Coforge has taken support near its 200-Day EMA on September 5 and has seen a steady rise since then. On the weekly chart, the stock has formed a strong bullish candle and is on the verge of a consolidation breakout. The ratio chart of Coforge/Nifty IT is on the verge of a symmetrical triangle breakout, indicating likely outperformance by the stock in the sessions ahead. Currently, the stock is trading above its crucial moving averages, and these averages are edging higher. The DI+ has crossed over DI- in the ADX indicator, indicating that the upward momentum is becoming stronger. Hence, Shah recommends accumulating the stock in the zone of Rs 1,765-1,775 levels with a stop-loss of Rs 1,715. On the upside, it is likely to test the level of Rs 1,890 in the short term.
Nuvama Wealth has formed a tweezer bottom candlestick pattern on the daily scale, which indicates that sellers are exhausted and buyers are gaining momentum. The pattern is formed at the 61.8% Fibonacci retracement zone of Rs 6,180-6,190 of the prior up move (Rs 4,735-8,508). However, a mere formation of a tweezer bottom pattern is not enough. The stock still trades below both its short- and long-term moving averages. The RSI has moved a little over the 40 level, indicating a mild uptick in momentum, and volumes have also seen a rise in the last 4 sessions. It would be too early to signal this as the beginning of a new rally. A follow-up candle, ideally closing above the current candle’s high, can confirm a potential short-term bullish reversal.
Gujarat Mineral Development Corporation (GMDC) broke its major resistance zone of Rs 500-510 on September 5, retested the same zone three days later, and bounced back sharply, ending nearly 11% higher on Friday. The breakout was supported by a sharp rise in volumes. The stock trades nearly 30% higher above its 50-day EMA of 436. Additionally, the RSI indicates that the stock is in an overbought territory. Given the sharp rise in the price in recent trading sessions and indicators in the overbought zone, the stock may take a breather or undergo a period of brief consolidation before resuming its upward move. It is advisable to be cautious at the current level. Any dip can give an opportunity to enter as the stock structurally is in a strong uptrend.
Frequently Asked Questions
What are the top stock picks for the upcoming week according to Sudeep Shah?
Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, recommends Bajaj Finance and Coforge as the top stock picks for the upcoming week.
Why is GMDC considered overbought, and what should investors do?
GMDC has experienced a sharp rise in price and is currently in an overbought zone, as indicated by the RSI. Investors should be cautious and consider waiting for a breather or brief consolidation before entering.
What technical indicators support the potential breakout of the Nifty?
The Nifty is trading above key moving averages, with the daily RSI crossing the 60 level and the MACD in a bullish crossover. These indicators suggest a potential breakout and continued upward momentum.
What is the recommended entry level for Bajaj Finance?
Sudeep Shah recommends accumulating Bajaj Finance in the zone of Rs 1,000-1,010 levels with a stop-loss of Rs 975. On the upside, the stock is likely to test the level of Rs 1,075 in the short term.
What is the significance of the tweezer bottom pattern in Nuvama Wealth?
The tweezer bottom pattern in Nuvama Wealth indicates that sellers are exhausted and buyers are gaining momentum. However, a follow-up candle closing above the current candle’s high is needed to confirm a potential short-term bullish reversal.
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