Indian equity benchmark indices ended the week slightly up after recovering from early losses, despite disappointing quarterly earnings and inflation worries that initially dampened market sentiment. The Nifty index managed to recover from intraday lows and closed 0.42% higher at 24,854 (+104 points), driven by strong buying at lower levels. The index showed resilience throughout the session, with no hourly candle closing below the previous low, and it reached an intraday high of 24,886. This recovery was supported mainly by the banking and finance sectors.
Bank Nifty also opened on a weak note but rebounded sharply, closing 1.57% higher at 52,094 (+805 points). Like Nifty, no hourly candle closed below the prior low, allowing the index to reach 52,199 during the day, indicating strong buying interest from investors at lower levels.
Looking ahead, the market outlook will be influenced by both domestic and global economic data, including India’s Nikkei S&P Global Manufacturing and Services PMI for October, the RBI’s MPC meeting minutes, and U.S. and U.K. PMI data. The Indian stock market has been on a three-week losing streak, with Nifty50 falling to its lowest level since August. For the week, Nifty50 ended at 24,854, down nearly 0.50%, while the Sensex dropped around 0.20% to close at 81,224.75. The market’s weakness was triggered by lackluster earnings from major companies and inflation concerns, which increased expectations of a delay in RBI rate cuts.
Nifty Prediction: After closing in the green for the first time in three weeks, Nifty50 found support near its 100-day EMA and managed to stay above 24,800. Resistance now stands at 25,000, and a breakout could push the index toward 25,300. On the downside, support is at 24,500, with the potential for a drop to 24,200 if breached. Although Nifty has shown some strength, upcoming earnings reports will likely guide the market’s next move, with a sideways to bullish trend suggested for traders.
Bank Nifty Prediction: Bank Nifty, after a weak start, reversed from the 51,000 level and closed above last week’s high of 52,000, signaling strong buying interest driven by positive banking results. Resistance is now at 52,300, and a breakout could propel it to 52,900, while support is at 51,500, with a potential drop to 51,000 if breached. Traders are advised to follow a “buy-on-dips” strategy to capitalize on this upward trend.
Stocks to Watch:
- MCX (Multi Commodity Exchange) is recommended for a buy-in cash at Rs. 6,561.15, with a stop-loss at Rs. 6,332 and a target of Rs. 7,020. The stock is in a strong upward trend, trading above its 20-day, 50-day, and 200-day EMAs, showing consistently higher highs and lows. If it breaks key resistance levels, it could reach Rs. 7,020. The RSI stands at 75.80, indicating growing buying momentum, though traders should use a stop-loss to manage risk.
- Abbott India is also suggested as a buy-in cash at Rs. 29,209.55, with a stop-loss at Rs. 28,250 and a target of Rs. 31,250. The stock is forming a symmetrical triangle pattern, indicating a potential breakout. Currently trading within this pattern, the price is poised for a move toward Rs. 31,250 if it breaks resistance. With an RSI of 55.57, the stock has neutral momentum but leans slightly bullish. Proper risk management is advised with a stop-loss to guard against reversals.
Both stocks present promising opportunities for gains, supported by technical analysis, provided risk management strategies are in place.
Disclaimer: The information provided here is for educational and informational purposes only and should not be considered as financial or investment advice. Market conditions and stock performances can fluctuate, and past performance is not indicative of future results. Always consult with a certified financial advisor or conduct your own research before making any investment decisions. The author and platform are not responsible for any losses incurred based on the information provided. Trading in the stock market involves significant risks, and it is important to practice proper risk management strategies.
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