Stocks to buy this week: What's the outlook for Nifty? Check list of top stock recommendations

Stock market recommendations: According to Sudeep Shah, Head - Technical Research and Derivatives, SBI Securities, Uno Minda Ltd, and HDFC Life are the top stock picks for this week. Here’s his view on Nifty, Bank Nifty for the week starting August 18, 2025:

Nifty View

The benchmark index Nifty finally snapped its six-week losing streak, closing the week with a healthy gain of 1.10% and reclaiming the 24600 mark.

This rebound has brought some relief to market participants after a prolonged phase of weakness. However, the momentum appears to have tapered off in the last two trading sessions, with the index confined to a tight range and forming small-bodied candles — a sign of consolidation after the recent minor pullback.Currently, the Nifty continues to trade below its 20-day and 50-day EMA, with both moving averages trending downward — reflecting the underlying weakness in the medium-term structure.

On the momentum front, the daily RSI remains in a sideways zone as per the RSI range shift framework, indicating a lack of clear directional bias. Meanwhile, the MACD histogram continues to hover below both its zero line and signal line, keeping the overall sentiment cautious.In terms of internal strength, as many as 28 out of the 50 Nifty constituents are still trading below their respective 50-day EMA levels, suggesting that the recent recovery has yet to gain strong participation across the index.

Overall, while the Nifty has managed to break its losing streak, the technical setup still points to caution until broader participation and a move above key averages confirm strength. Talking about crucial levels, the zone of 24750-24800 will be the crucial hurdle for the index. If the index sustains above the 24800 level, then it is likely to extend its pullback rally upto the 25100 level. While on the downside, the zone of 24470-24450 will act as important support for the index.

Any sustainable move below the level of 24450 will lead to resume its southward journey. In that case, the index is likely to test the level of 24250, followed by the 24100 level.

Bank Nifty View

Over the past week, the banking benchmark index Bank Nifty traded in a narrow 654-point range — its tightest weekly band since late August 2024. The index underperformed the frontline peers, posting a modest 0.61% gain. On the weekly chart, it formed a small-bodied bullish candle with a slight upper shadow, signalling muted directional momentum.For the past six sessions, Bank Nifty has been hovering around its 100-day EMA, reflecting an indecisive phase. It remains below the 20-day and 50-day EMAs, keeping the overall trend structure weak. The daily RSI also continues to move sideways, indicating the absence of a strong breakout setup.Looking ahead, the 55700–55800 zone will be a key resistance, while 54900–54800 will act as crucial support. A sustained move beyond either of these levels is likely to pave the way for a directional move.

Stock recommendations:

Uno Minda LtdThe stock has witnessed a breakout above a downward-sloping trendline on the daily chart, accompanied by strong volume exceeding the 50-day average, confirming the validity of the breakout. The formation of a sizable bullish candle on the breakout day adds further strength to the move. The stock is currently trading above its short and long-term moving averages, which are trending higher and aligned in the desired sequence—indicating a strong underlying trend.Momentum indicators are also supportive, with the daily RSI surging past the 60 mark and remaining in an upward trajectory. Although the ADX is currently at 15, suggesting that trend strength is still developing, the directional indicators are already in buy mode, reinforcing the bullish setup. Hence, we recommend to accumulate the stock in the zone of 1155-1145 with a stoploss of 1100 on the upside, it is likely to test the level of 1270 in the short term.HDFC LifeThe stock has recently broken out above the neckline of an Adam and Adam Double Bottom pattern on the daily chart, signalling a bullish reversal. This breakout is supported by a rising ADX, which has crossed above the -DI line, confirming directional strength. The stock is trading approximately 6% above its 100-day EMA and nearly 11% above its 200-day EMA, reflecting strong momentum. Additionally, the daily RSI is in bullish territory and continues to rise, further validating the positive price action. Hence, we recommend to accumulate the stock in the zone of 790-780 with a stoploss of 750 on the upside, it is likely to test the level of 860 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)