SBI Securities' Head of Technical Research and Derivatives, Sudeep Shah, has recommended two stocks for the June 15-19, 2026 trading week: Karnataka Bank and Avalon Technologies. The recommendations come as the Nifty 50 index showed resilience, closing the previous week with a gain of 1.10% after a sharp recovery on Friday, supported by falling crude oil prices and encouraging developments in West Asia, as reported by Times of India.
Nifty Outlook: Technical Signals Turn Bullish
According to the source, Nifty experienced heightened volatility in the first four sessions of the prior week, trading within a narrow 355-point range. A key positive was the index's repeated support near the 61.8% Fibonacci retracement level of the rally from 22,182 to 24,602. This resilience paved the way for Friday's decisive turnaround, triggered by positive West Asia news and a sharp decline in Brent crude oil below $90 per barrel.
From a technical standpoint, Friday's rally saw Nifty close above its 20-day Exponential Moving Average (EMA) for the first time since May 2026, signaling revived short-term momentum. The Daily Relative Strength Index (RSI) rebounded above both the 50 mark and its 9-day average. Additionally, the Daily Stochastic recorded a bullish crossover, reinforcing improving market structure.
| Technical Indicator | Signal |
|---|---|
| 20-day EMA | Closed above (first time since May 2026) |
| Daily RSI | Rebound above 50 and 9-day average |
| Daily Stochastic | Bullish crossover |
| Fibonacci retracement (61.8%) | Support held multiple times |
Going ahead, the breakout above short-term resistance levels suggests Nifty may extend its recovery toward 23,800, followed by a psychological milestone (not specified in source).
Top Stock Picks for the Week
Sudeep Shah identified Karnataka Bank and Avalon Technologies as key buys, based on strong technical setups. Below are the details:
| Stock | Recommendation | Entry Zone (₹) | Stop Loss (₹) | Short-Term Target (₹) |
|---|---|---|---|---|
| Karnataka Bank | Accumulate | 273–278 | 265 | 295 |
| Avalon Technologies | Accumulate | 1685–1695 | 1640 | 1810 |
Karnataka Bank
Karnataka Bank displayed resilience by consolidating around its 20-day EMA since early June before a strong pullback on June 12. The stock approached the crucial resistance zone of 278–280, indicating growing buying interest. Technically, the stock trades comfortably above its key short-term and long-term moving averages, reflecting a well-established uptrend. The Average Directional Index (ADX) on the weekly chart is rising, pointing to strengthening trend momentum, while the Moving Average Convergence Divergence (MACD) is on the verge of a bullish crossover. A decisive move above the resistance zone could trigger fresh upside momentum.
Avalon Technologies
Avalon Technologies exhibits a strong bullish structure, maintaining a higher high–higher low formation on both daily and weekly charts—a hallmark of a sustained uptrend. The stock trades comfortably above its key moving averages. The weekly ADX is turning higher, signaling bullish trend strength. The MACD line stays above both the signal line and zero line with rising histogram bars. The RSI has bounced from the 60 level, reinforcing positive momentum.
Next Milestone for Investors
With multiple technical indicators aligning in favor of bulls, market participants will watch for a sustained break above Nifty's short-term resistance to confirm the recovery toward 23,800. The stock recommendations provide defined entry zones and stoploss levels for risk management during the week.
Disclaimer: The views and recommendations expressed are those of the analyst and do not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
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