According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, Apollo Tyres and Nykaa are the best stocks to watch this week. Here’s his outlook on Nifty and Bank Nifty for the week starting August 25, 2025:
Nifty Outlook
Last week, Nifty started strong due to two big positive news updates:
- S&P Global Ratings upgraded India’s credit outlook, which boosted investor confidence.
- Prime Minister Modi announced next-generation GST reforms (expected by Diwali) that aim to simplify taxes and help small businesses and consumers.
These developments pushed Nifty to a high of 25,153 by Thursday. But on Friday, profit booking kicked in, and the index fell back after failing to cross an important resistance level (61.8% Fibonacci retracement).
A bearish candlestick pattern (Evening Star) has now formed, which often signals a short-term correction. Also, the momentum indicator (RSI) did not rise above 60, showing weak buying strength.
Read more: Stock Market Today: Nifty50 Opens Above 24,900, Sensex Gains Over 200 Points
- Support levels: 24,650–24,600 (100-day EMA).
- Resistance levels: 25,050–25,100.
A strong move above or below these levels will decide Nifty’s next trend.
Bank Nifty Outlook
Bank Nifty lagged behind Nifty last week.
- It touched a high of 56,156, but later dropped sharply by over 1,000 points to close at 55,150, down 0.35% for the week.
- A big bearish candle appeared on the weekly chart, showing strong selling pressure.
Technical indicators also suggest weakness:
- Bank Nifty is trading below its 20-day and 50-day EMAs (a negative sign).
- RSI is near 40, showing fading momentum.
- Support levels: 54,900–54,800 (immediate). Below this, it may fall to 54,300 or even 53,544 (200-day EMA).
- Resistance levels: 55,600–55,700.
Unless there’s fresh positive news, Bank Nifty is likely to stay under pressure.
Stock Recommendations
Apollo Tyres
- The stock has broken out of a falling channel pattern, which usually signals a trend reversal.
- Weekly chart shows the first strong bullish candle since May 2025, with good trading volumes.
- RSI is near 60, indicating improving strength.
Recommendation:
- Buy in the ₹466–462 range
- Stoploss: ₹445
- Target: ₹510 (short term)
Nykaa
- The stock broke out of a cup pattern last week with heavy volumes, showing strong buying interest.
- It’s trading near its all-time high, with all major moving averages supporting the uptrend.
- RSI is also bullish across timeframes.
Recommendation:
- Buy in the ₹225–223 range
- Stoploss: ₹215
- Target: ₹250 (short term)
Note: These are the expert’s opinions. Always talk to a professional financial advisor before investing.
