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Stock market recap: On Tuesday, Indian equities extended their recovery for a second straight session as softer crude oil prices, firm Asian markets, and strong quarterly business updates lifted sentiment ahead of the RBI's policy decision. Nifty 50 rose 220.35 points, or 0.98%, to close at 22,776.10, finishing at its high of the day, while Sensex gained 685.34 points, or 0.95%, to settle at 73,067.81. Buying was broad-based, led by capital goods, FMCG, Oil and Gas, and Healthcare stocks. Nifty IT was the only major sector to end lower, falling nearly 1%. Trent was the standout, jumping about 13% to a two-year high after reporting 23% revenue growth for the quarter. Kotak Mahindra Bank rose nearly 4% on strong growth in loans and deposits, helping private banks support the index. Consumer stocks such as Dabur, Godrej Consumer, and HUL gained on signs of improving demand, especially in rural areas. Market breadth was strongly positive, with 2,455 stocks advancing, 1,125 stocks declining, and 115 remaining unchanged. Investors are now awaiting Wednesday's RBI policy announcement. Markets will look closely for any signal of rate hikes, which could set the near-term direction after a long losing streak. Two stock recommendations by MarketSmith India: Buy: SKY GOLD AND DIAMONDS LIMITED (current price: ₹858) - Why it’s recommended: Strong expansion in jewellery manufacturing capacity and growing relationships with large retail chains are driving volume growth and market penetration. Rising demand for organized gold jewellery, along with increasing franchise/showroom presence, supports revenue scalability and brand visibility. - Key metrics: P/E: 37.28, 52-week high: ₹877.00, volume: ₹355.54 crore - Technical analysis: Trendline Breakout - Risk factors: High dependence on gold prices exposes margins and working capital requirements to commodity price volatility. Customer concentration risk: A significant portion of revenue comes from a limited number of large jewellery retailers. - Buy: ₹849–862 - Target price: ₹950 in two to three months - Stop loss: ₹817 Buy: Black Box Limited (current price: ₹840) - Why it’s recommended: Growing demand for digital infrastructure, data center networking, cloud connectivity, and cybersecurity solutions is supporting order inflows across global markets. Strong presence in enterprise communication and IT networking services, coupled with cross-selling opportunities from large international clients, enhances long-term growth prospects. - Key metrics: P/E: 50.09, 52-week high: ₹1,103.00, volume: ₹92.80 crore - Technical analysis: Trendline Breakout - Risk factors: Business performance is exposed to slowdown in enterprise IT spending and delays in large technology infrastructure projects. Significant overseas operations create risks related to currency fluctuations, geopolitical developments, and client concentration in key markets. - Buy at: ₹832–844 - Target price: ₹970 in two to three months - Stop loss: ₹792 Nifty 50 recap On 6 October, Indian equities ended firmly higher, extending the recovery from the previous session. Nifty 50 gained 220.35 points, or 0.98%, to 22,776.10, finishing at the day’s high after opening at 22,603.25 and holding above its previous close of 22,555.75. Sensex also traded strongly, supported by improving risk appetite. Market breadth was notably positive, with 2,455 stocks advancing, 1,125 stocks declining, and 115 remaining unchanged. This translates into an advance-decline ratio of about 2.18:1 and indicates broad participation beyond index heavyweights. On the sectoral front, Pharma (+1.66%), Oil & Gas (+1.58%), Private Banks (+1.41%), and FMCG (+1.40%) led gains. On the other hand, T (-0.59%), Realty (-0.27%), and PSU Banks (-0.08%) lagged. Trent was among the standout gainers while technology counters remained under pressure. Nifty 50 staged a strong rebound, closing at 22,776.10, up 0.98%, after the recent sharp decline. Despite the recovery, the broader price structure remains bearish, with the index continuing to trade below its key short-, medium-, and long-term moving averages. Price action has also moved below the previously established rising trendline, indicating weakening broader trend. The latest bounce therefore appears corrective at this stage rather than a confirmed trend reversal. The RSI has recovered to 36.31 from oversold territory moved above its signal average of around 31, suggesting downside momentum is easing. The scope for a near-term recovery has improved. However, the RSI remains below the neutral 50 mark, keeping the underlying momentum bias weak. Meanwhile, the MACD remains firmly below the zero line, with the MACD line still below the signal line, confirming the prevailing negative trend. Nifty 50 extended its winning streak and closed above 22,700, reflecting continued recovery momentum. On the downside, 22,200–22,000 remains a crucial support area. A sustained break below this band could renew selling pressure and potentially drag the index toward 21,700–21,600. Conversely, further upside is likely to face resistance around 22,800–23,000, which has emerged as an important technical hurdle following the recent breakdown. How did Nifty Bank perform Nifty Bank gained for a second straight session on Tuesday, rising 414.30 points, or 0.76%, to close at 55,128.40, led by private lenders on strong quarterly business updates. The index touched an intraday high of 55,201 on expiry day and held most of its gains into the close. Kotak Mahindra Bank was the top performer, gaining about 4.5% after reporting loan growth of nearly 25% annually and deposit growth of 23%. IndusInd Bank gained about 2.2% after reporting 11% loan growth, and Axis Bank rose about 2%. Heavyweight HDFC Bank added more than 1%, and ICICI Bank edged higher, giving the index solid support. Public sector banks lagged, with SBI, PNB, Union Bank, and Canara Bank ending slightly lower. Federal Bank and IDFC First Bank were the weakest, falling more than 1% each. Breadth was evenly split, with seven gainers and seven decliners. All eyes now turn to Wednesday's RBI policy decision, which will be key for bank stocks. The Nifty Bank index staged a recovery and closed at 55,128.40, up 0.76%, after a sharp decline. Despite the rebound, the broader price structure remains weak, with the index trading below its key short-, medium-, and long-term moving averages. At the same time, the recent sequence of lower-highs and lower-lows continues to indicate a bearish trend. Price action has yet to establish a convincing reversal pattern, suggesting that the current move is better viewed as a technical rebound within the prevailing downtrend. The RSI improved to 41.50 from near-oversold levels and moved above its signal average of 37.97, indicating easing downside momentum and improving near-term strength. However, its position below the neutral 50 mark suggests momentum remains subdued. Meanwhile, the MACD continues to trade below both its signal line and the zero line, confirming that the underlying momentum remains negative. Immediate support for the index is placed at 54,000, and a decisive break below this level could intensify selling pressure, potentially extending the decline toward 53,000. On the upside, any near-term recovery is likely to encounter initial resistance around 55,500, followed by 55,900. 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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