Stock market recommendations: Bharat Forge, and Bajaj Finance – these are the top stocks to buy that Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities has recommended for the July 20-July 24, 2026 week. Nifty, and Bank Nifty outlooks from a technical perspective have also been shared:
Stock recommendations:
Bharat ForgeBHARATFORG has given a bullish breakout after consolidating within the 2,082–2,176 range since the beginning of July. The breakout is backed by a sharp surge in volumes, indicating strong institutional participation and adding credibility to the move. On the weekly timeframe, the ADX has started to trend higher, signalling that bullish trend strength is gathering momentum. Meanwhile, the daily RSI has reclaimed the 60 mark, reflecting renewed buying momentum and improving market sentiment.With the stock emerging from a healthy consolidation phase and technical indicators turning increasingly positive, the overall setup points towards the potential for an extended uptrend in the sessions ahead. Hence, we recommend to accumulate the stock in the zone of 2175-2195 with a stoploss of 2110. On the upside, it is likely to test the level of 2350 in the short term.Bajaj FinanceBAJFINANCE is displaying a strong bullish technical setup after breaking above a downward-sloping trendline on the daily chart on 30 June. Following a brief throwback, the stock found support near the trendline breakout level and resumed its upward trajectory, reaffirming the strength of the breakout. It continues to trade comfortably above its key moving averages, highlighting a well-established uptrend. The ratio line in Bajaj Finance/Nifty ratio chart has also registered a fresh breakout, signalling the potential for continued outperformance against the benchmark. Meanwhile, the RSI has repeatedly found support near the 60 mark and moved higher, while rising green MACD histogram bars indicate strengthening bullish momentum and improving trend conviction. Hence, we recommend to accumulate the stock in the zone of 1050-1060 with a stoploss of 1015. On the upside, it is likely to test the level of 1135 in the short term.Nifty ViewLast week, the benchmark index Nifty traded within an exceptionally narrow range of just 367 points, its smallest weekly trading range since December 2025. More importantly, the index has been consolidating within the 24530-23785 zone for the past five weeks, resulting in the formation of a series of small-bodied indecisive candles on the weekly chart. This prolonged period of range-bound movement indicates a clear lack of conviction among both buyers and sellers, with neither camp able to establish a dominant trend. However, such extended phases of consolidation are often followed by a meaningful directional move.The subdued price action has also led to the formation of a Bollinger Band Squeeze on the daily chart, a technical condition that emerges when volatility contracts significantly and the Bollinger Bands tighten. Historically, periods of compressed volatility are often precursors to sharp price expansion. Meanwhile, momentum indicators continue to reflect the ongoing indecision. Both the daily RSI and Stochastic Oscillator are moving sideways, highlighting the absence of strong momentum in either direction. In addition, the Average Directional Index (ADX) has declined to 10.56, its lowest reading since July 2021, underscoring the lack of trend strength in the market. Collectively, these indicators suggest that Nifty is building up for a larger move, with market participants now awaiting a trigger to determine the next directional trend.The coming week could provide exactly that catalyst. Several index heavyweights, including Reliance Industries, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, are scheduled to report their quarterly earnings over the weekend. Given their significant weightage in the index, the market’s reaction to these results is likely to play a crucial role in deciding whether Nifty finally breaks free from its prolonged consolidation phase.From a technical standpoint, the 24500-24550 zone remains an important resistance area as it coincides with previous swing highs. A decisive and sustained move above 24550 could trigger fresh buying interest and open the doors for an advance towards 24800, followed by the psychologically important 25000 mark in the short term.On the downside, the 20-day EMA zone of 24100-24050 is expected to act as a strong support base. As long as the index remains above this zone, the broader bullish structure is likely to remain intact despite the ongoing consolidation.Bank Nifty ViewThe banking benchmark index, Bank Nifty, has remained in a consolidation phase over the last 23 trading sessions, oscillating within the broad range of 58706-56549. Encouragingly, the index is now hovering near the upper end of this range, suggesting that a decisive breakout may be imminent after an extended period of sideways movement.Technically, the setup continues to remain favorable. Bank Nifty is trading comfortably above its key short-term and long-term moving averages, highlighting the strength of the prevailing trend. Momentum indicators are also lending support to the bullish view. The daily RSI is sustaining above the 60 mark and continues to trend higher, reflecting improving momentum and renewed buying interest. Other oscillators are also indicating a positive undertone, suggesting that bulls retain the upper hand.The upcoming trading session assumes added significance, as several heavyweight banking stocks, including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, are scheduled to announce their quarterly earnings over the weekend. Given their substantial representation in the index, the market’s reaction to these earnings will likely be a key determinant of Bank Nifty’s next directional move. Strong results could provide the catalyst needed for a breakout, while any disappointment may lead to further consolidation.From a technical perspective, the 58700-58800 zone remains an important resistance area, coinciding with a key horizontal trendline and the upper boundary of the ongoing consolidation range. A sustained move above 58800 would confirm a breakout and could trigger fresh momentum, paving the way for an advance towards 59500, followed by 60300 in the short term.On the downside, the 20-day EMA zone of 57600-57500 is expected to act as a crucial support region. As long as the index holds above this zone, the broader positive outlook is likely to remain intact, despite any interim volatility. Overall, Bank Nifty appears well-positioned for a potential breakout, with upcoming earnings announcements likely to serve as the key trigger for its next major move.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)