Stocks to buy: What’s the outlook for Nifty for May 25-May 29 week? Check list of top stock recommendations

Stock market recommendations: Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities recommends buying Varun Beverages Ltd, and Elecon Engineering Company Ltd as the top stock picks for the May 25, 2026 week. The expert also shares his outlook for Nifty and Bank Nifty:Varun Beverages LtdVBL has turned technically strong after delivering a Stage-2 cup pattern breakout on the daily chart, backed by a sharp surge in volumes. The stock has rallied nearly 11% since taking support near its 20-day EMA on 13th May, reflecting sustained buying interest at lower levels. Adding to the bullish setup, the weekly chart has confirmed a breakout from a downward-sloping trendline, followed by a strong follow-through move. Momentum indicators remain firmly supportive, with the RSI holding above 60 on both daily and weekly timeframes. Furthermore, the rising ADX on the weekly chart highlights strengthening trend momentum, indicating the possibility of continued upside in the sessions ahead. Hence, we recommend to accumulate the stock in the zone of 537-542 with a stoploss of 523. On the upside, it is likely to test the level of 578 in the short term.Elecon Engineering Company LtdELECON has taken a support near its 200-day EMA level and thereafter started moving higher along with relatively higher volume. Momentum indicators continue to support the bullish setup, with the RSI surging from 50 to 63 on the daily timeframe, signalling renewed strength. Additionally, the DI+ crossing above DI- in the ADX indicator points towards strong buyer dominance. Rising green histogram bars on the weekly MACD further reinforce the bullish bias, suggesting the potential for continued upside momentum ahead. Hence, we recommend to accumulate the stock in the zone of 530-535 with a stoploss of 515. On the upside, it is likely to test the level of 570 in the short term.Nifty ViewIn line with expectations, the benchmark index Nifty continued to trade within a narrow range of nearly 542 points during the week. The index ended close to the 23700 mark with a marginal gain of 0.27 percent. On the weekly chart, it formed a small-bodied candle with shadows on both sides, reflecting indecision among market participants and a lack of clear directional conviction. However, beneath this calm surface, several indicators are pointing towards an important move ahead.Over the past eight trading sessions, the index has oscillated within the 23860–23262 range. Notably, each session witnessed either a gap-up or gap-down opening, limiting opportunities for short-term traders to capture intraday momentum. This extended phase of consolidation has led to a gradual flattening of the 20-day and 50-day EMAs. At the same time, the daily RSI has been confined to the narrow band of 44–47, while the ADX at 16.86 indicates a clear absence of trend strength.More importantly, the broader market is echoing a similar trend. Most sectors are stuck in consolidation phases, reflecting a lack of widespread participation. Market breadth has weakened considerably, with momentum restricted to a handful of stocks while the majority remain subdued. Such narrowing participation often sets the stage for a decisive move in the market.Going ahead, the index is likely to continue its sideways trajectory until a clear breakout emerges from the current range. On the upside, the 23850–23900 zone is expected to act as a strong resistance band. Conversely, the 23400–23350 zone is likely to provide immediate support.The eventual breakout from this tightening range will be crucial, as it will determine whether the market transitions into a fresh trending phase or enters another bout of volatility.Bank Nifty ViewThe banking benchmark index, Bank Nifty, has relatively outperformed the frontline indices over the past week. The index has formed a base near the 61.8% Fibonacci retracement level of its recent up move (49955–57456) and has witnessed a mild pullback thereafter.Despite this brief retracement, the index continues to trade below its key moving averages, indicating that the broader trend remains cautious. Meanwhile, the daily RSI suggests a sideways phase as per the RSI range shift theory, and other momentum indicators and oscillators also point towards a lack of clear directional bias.Going ahead, the 53200–53000 zone is likely to act as a strong support base for the index. On the upside, the 20-day EMA zone of 54350–54500 will serve as a key resistance area. A sustained move above the 54500 mark could trigger further upside, potentially leading the index to test the 50-day EMA, which is currently placed around 55270.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)