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Stock market recap: Indian equities recovered from early profit booking on Friday. The Sensex rose about 700 points from its intraday low. The gains were driven by a fourth straight session of buying in IT stocks, cooling bond yields, easing crude oil prices, and a rupee that strengthened for a fifth consecutive day. The IT index jumped nearly 4% after Tech Mahindra's Q2 net profit rose 32.7% year on year to ₹1,585.6 crore, along with a dividend and a bonus issue. Wipro's revenue also beat estimates. In addition, a global selloff in AI-linked stocks pushed investors toward Indian software exporters, and the sector headed for its biggest weekly gain in 18 years. Two stock recommendations by MarketSmith India: Buy: Goodluck India Limited (current price: ₹595) - Why it is recommended: Strong demand from the infrastructure, renewable energy, railways, and defence sectors is driving growth in the company's value-added engineering and steel products business. Capacity expansions and an increasing contribution from high-margin specialized products are supporting revenue growth and margin improvement. - Key metrics: P/E: 27.45, 52-week high: ₹615.00, volume: ₹46.50 crore - Technical analysis: Consolidation base breakout - Risk factors: Volatility in steel and raw material prices can impact profitability and working capital requirements. Dependence on cyclical sectors, such as construction and infrastructure, may lead to demand fluctuations during economic slowdowns. - Buy: ₹589–598 - Target price: ₹675 in two to three days - Stop loss: ₹555 Buy: FSN E-Commerce Ventures Limited (current price: ₹344) - Why it is recommended: Rising online penetration of beauty and personal care products, coupled with Nykaa's strong brand positioning and omnichannel presence, supports sustained growth. Expansion of private labels, premium beauty brands, and fashion offerings is improving customer engagement and profitability. - Key metrics: P/E: 356.26, 52-week high: ₹349.55, volume: ₹91.13 crore - Technical analysis: Bounce back from its 21-DMA - Risk factors: Intense competition from large e-commerce platforms and quick-commerce players could pressure market share and margins. Slower discretionary spending and increased customer acquisition costs may affect revenue growth and earnings performance. - Buy: ₹341–346 - Target price: ₹380 in two to three months - Stop loss: ₹325 Nifty 50 recap The Nifty 50 opened higher on Friday but slipped below the 23,000 mark in early trade as investors booked some profits following Thursday's sharp rally. Buyers then stepped in after the index tested its intraday low. It ended the session near the day's high. The index opened at 23,065.10, touched a high of 23,149.85, a low of 22,913.80, and closed at 23,146.15, up 148.80 points (0.65%). The day's bullish candle closed near its high and above the 21-day SMA (22,861), which points to a short-term base forming near the October lows. IT stocks led the gains: TECHM (+8.48%), TCS (+4.89%) and INFY (+4.61%). INDIGO (-1.91%), BSE (-1.90%), and MAXHEALTH (-1.40%) fell the most, while RELIANCE (-0.31%) weighed slightly on the index. The RSI has risen sharply from oversold levels to 52.81 and is well above its signal line at 34.70, so momentum is improving. The MACD line at -208.78 has crossed above its signal line at -295.98, and the histogram is positive at 87.20. This confirms a bullish crossover, although both lines remain below zero. However, the 50-, 100- and 200-day SMA are stacked in a bearish order (50 below 100, and 100 below 200). This indicates the broader trend remains weak, and the current move may be a recovery within a downtrend. Immediate support is at 23,000, followed by 22,860 (the 21-day SMA) and 22,600. A break below these levels could pull the index back toward the October swing low. On the upside, 23,300 is the first resistance, followed by 23,550 (the 50-day SMA) and 23,750 (the 100-day SMA). Strong results from Tech Mahindra lifted IT stocks. Hopes of an India–U.S. trade deal, softer bond yields and easing crude prices also support the outlook. HDFCBANK, ICICIBANK, and AXISBANK report results on 17 October, so we expect the recovery to continue toward 23,550 while the index holds above 22,860. Nifty Bank On Friday, the Nifty Bank index opened higher but slipped into the red early as sellers emerged near the higher levels. Buyers came back after the index tested intraday lows, and it ended slightly higher. The index opened at 55,927.15, touched a high of 55,989.55, a low of 55,526.30, and closed at 55,844.00, up 33.50 points (0.06%). The day's candle has a small body and a long lower shadow, which looks like a hammer. It shows demand above the 21-day SMA. PSU lenders led the gains: PNB (+1.09%), BANKBARODA (+1.05%) and CANBK (+1.00%). YESBANK (-3.42%), AUBANK (-1.33%), and IDFCFIRSTB (-1.25%) fell the most. Among the heavyweights, ICICIBANK, HDFCBANK, and SBIN supported the index, while INDUSINDBK and KOTAKBANK weighed on it. The RSI is at 51.91. It has moved back above 50 and is well above its signal line at 40.51. The momentum is slowly turning in favour of the bulls. The MACD line at -274.60 has crossed above its signal line at -449.29, and the histogram shows positive bars at 174.69. This confirms a bullish crossover. Both lines remain below zero, though, so the broader trend is only starting to recover. The index has also reclaimed the 21-day SMA (55,358). However, the 50-, 100- and 200-day SMA sit close together between 56,485 and 56,928, which is strong resistance overhead. The 50-day SMA is still below the 200-day SMA, so caution is needed. Immediate support is at 55,500, near the day's low, followed by 55,350 (the 21-day SMA) and 54,800. A break below 54,800 could bring more selling toward the October swing low near 53,800. On the upside, 56,000 is the first resistance, followed by the 56,500–56,900 range where the 50-, 100- and 200-day SMA converge. HDFCBANK, ICICIBANK, and AXISBANK report Q2 results on October 17, so earnings will likely decide the near-term direction. Hopes of an India–U.S. trade deal, softer bond yields, and easing crude prices support the outlook. We expect the index to trade sideways with a positive bias between 55,350 and 56,500. A decisive close above 56,000 could start a bigger move higher. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website. Trade name: William O’Neil India Pvt. Ltd. Sebi Registration No.: INH000015543 Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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