Chartist Talks: Nifty May Take A Breather After Record Session Count Formation, Says SBI Securities’ Sudeep Shah Daily Kiran

After eight consecutive trading sessions of declines, the Nifty 50 has witnessed its longest losing streak since February 2023, leading to the formation of the Record Session Count candlestick pattern. This rare technical pattern, often seen at the bottom of a downtrend, suggests that the market could be poised for a temporary relief rally or consolidation, according to Sudeep Shah, Deputy Vice President and Head of Technical & Derivative Research at SBI Securities.

While broader indices have been under selling pressure, Shah remains bullish on select stocks, identifying Bharti Airtel and Redington as potential outperformers for the upcoming week. In an exclusive interview with Moneycontrol, he explained how these stocks have displayed relative strength compared to frontline indices, making them attractive bets in the current market scenario.

Nifty 50: Poised for Consolidation After Longest Losing Streak in Two Years

Formation of the Record Session Count Pattern

The Nifty 50 has been on a prolonged downward trajectory, recording eight straight sessions of losses, making it the longest losing streak in two years. This has resulted in the formation of the Record Session Count candlestick pattern, an extremely rare technical setup that typically appears at the end of extended downtrends.

Key Technical Observations:

The Nifty 50 has slipped below its 23,000 psychological level, facing persistent selling pressure.
This pattern indicates a potential pause in the downtrend, which could lead to either sideways movement or a short-term recovery.
Given its rarity, traders often view this as an opportunity for selective stock picking rather than broad-based buying.

With this backdrop, SBI Securities remains selectively bullish on stocks that have shown strength despite broader market weakness.

Stock Picks for the Week: Bharti Airtel and Redington

1. Bharti Airtel (NSE: BHARTIARTL) Strong Uptrend Amid Market Weakness

Current Price (NSE Closing, Feb 14, 2025): ₹1,717.05 (+0.14%)
Day’s Range: ₹1,705.25 ₹1,724.10
Volume: 5.12 million shares

Technical Outlook:

Bharti Airtel has been one of the strongest stocks in the Nifty 50, consistently outperforming the broader market.
The stock has held above key support levels, indicating strong institutional interest and resilience amid broader weakness.
Momentum indicators such as RSI and MACD continue to signal upside potential, with the stock trading near its 52-week high.

Investment Rationale:

5G Expansion & Subscriber Growth: Bharti Airtel continues to expand its 5G network footprint, boosting subscriber growth and ARPU (average revenue per user).
Strong Financials: The company has maintained robust earnings growth, driven by higher data consumption, premium user base, and rising tariff rates.
FII & DII Accumulation: Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have been consistently adding positions, highlighting confidence in the stock.

Target Price: ₹1,850 ₹1,900
Stop-Loss: ₹1,650

2. Redington (NSE: REDINGTON) Emerging as a Strong Midcap Performer

Current Price (NSE Closing, Feb 14, 2025): ₹180.25 (+1.85%)
Day’s Range: ₹177.60 ₹182.15
Volume: 2.4 million shares

Technical Outlook:

Redington has displayed an impressive uptrend, consistently closing above its 20-day and 50-day moving averages.
The stock has broken out of a consolidation zone, signaling potential for further upside.
Bollinger Bands indicate increasing volatility, suggesting a momentum-driven rally could be on the horizon.

Investment Rationale:

Apple & IT Distribution Growth: Redington is a key distributor for Apple and other tech brands, benefiting from rising demand for premium smartphones, laptops, and IT services.
Strong Q3 Performance: The company’s latest earnings report showed revenue growth of 18% YoY, driven by higher sales in the enterprise and cloud segments.
Valuation Comfort: Despite strong growth, the stock remains reasonably valued, making it an attractive pick for investors looking for fundamentally strong midcap stocks.

Target Price: ₹195 ₹205
Stop-Loss: ₹170

Market Outlook: Cautious Optimism with Selective Buying

As the Nifty 50 enters a potential consolidation phase, technical analysts believe the recent selloff could ease in the short term. However, with external factors such as global interest rate trends, foreign investor activity, and geopolitical risks still in play, the market is unlikely to see a sharp recovery.

Key Levels to Watch:

Nifty 50 Support: 22,800 22,950
Nifty 50 Resistance: 23,300 23,500

Broader Strategy for Traders and Investors:

Short-Term Traders: Look for stocks with strong relative strength, such as Bharti Airtel and Redington.
Long-Term Investors: Use dips to accumulate fundamentally strong companies, particularly in sectors like telecom, technology, and industrials.
Cautious Approach: Given recent volatility, maintain strict stop-loss levels and avoid leveraged positions.