The Sensex rose 329 points, or 0.40%, to close at 82,500.82, while the Nifty 50 settled at 25,285.35, up 104 points, or 0.41%. Gains were broad-based as the BSE Midcap and Smallcap indices rose 0.36 % and 0.59%, respectively.
Two stock recommendations by MarketSmith India for 13 October
Buy: Lloyds Metals and Energy Ltd (current price: ₹ 1,344.20)
- Why it’s recommended: Strong presence in iron and steel with integrated operations, rising steel demand from infrastructure growth, capacity expansion and value-added product focus, and supportive government policies for the steel sector
- Key metrics: P/E: 46.33, 52-week high: ₹ 1,612, volume: ₹ 38.47 Crore
- Technical analysis: Reclaimed its 200-DMA on above average volume
- Risk factors: Exposure to commodity price volatility, cyclical nature of the steel industry, regulatory and environmental compliance risks, and high capital expenditure requirements
- Buy: ₹ 1,330–1,360
- Target price: ₹1,650 in two to three months
- Stop loss: ₹1,200
Buy: Bank Of Maharashtra (current price: ₹57.50)
- Why it’s recommended: Strong loan & deposit momentum, rising CASA ratio, branch & geographic expansion, and de-concentration strategy
- Key metrics: P/E: 7.48; 52-week high: ₹73.50; volume: ₹98.61 crore
- Technical analysis: trendline breakout
- Risk factors: Asset quality stress with high growth, margin compression due to rising cost of funds
- Buy at: ₹57–58
- Target price: ₹62 in two to three months
- Stop loss: ₹ 55.80
How the Nifty 50 performed on 10 October
Indian equities maintained their upward trajectory, fueled by sustained foreign institutional investor (FII) inflows and optimistic sentiment surrounding the Q2 earnings season. The benchmark index, Nifty 50, closed decisively above its immediate resistance, gaining 132.75 points (+0.53%) to finish at 25,314.55, while Sensex advanced 421.64 points (+0.51%) to settle at 82,593.74.
Market breadth was robust, with Nifty’s advance-decline ratio a strong 37:13, signalling widespread buying interest. Sectorally, PSU Banks, Power, and Realty were the star performers, offsetting mild profit-booking in pockets of the Metal and IT sectors, despite better-than-expected results from a major IT heavyweight. Geopolitically, easing tensions in the Middle East and indications of a trade deal with the U.S. further bolstered risk appetite.
From a technical standpoint, Nifty 50 is exhibiting signs of short-term stabilization after its recent corrective phase. The index’s decisive rebound above the 100-DMA underscores a notable improvement in momentum and highlights renewed buying interest at lower levels.
The 14-period RSI, having recovered from oversold territory, indicates that selling exhaustion has likely set in, paving the way for a potential short-term base formation. Additionally, the index’s breakout above a downward-sloping trendline confirms a shift in market structure, with bearish momentum steadily losing traction. Complementing this view, the MACD has registered a bullish crossover, reinforcing the prospects of a near-term upmove.
According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” is at one.
The index extended its gains, sustaining its bullish momentum and surpassing the immediate resistance level of 25,250. The index now faces the next hurdle, near 25,500, where some consolidation or profit-taking could occur. A decisive breakout and sustained close above this zone may accelerate the uptrend, paving the way toward 25,650–25,700.
On the downside, 24,900–24,800 remains a strong support area, likely to attract fresh buying on dips. Overall, the broader market structure continues to favour the bulls, with momentum firmly on their side.
How did Nifty Bank perform?
Bank Nifty opened slightly weak. However, the index quickly rebounded, turning positive within the first hour of trade and maintaining strength throughout the session. It formed a bullish candle with a higher-high higher-low price structure on the daily chart, indicating a continuation of positive momentum. The index opened at 56,168.60, hit an intraday high of 56,760.25, and a low of 56,152.45, before closing at 56,609.75 up 0.74%. Broad-based buying across key constituents such as private and PSU Banks, including notable gains in IndusInd Bank, PNB, Axis Bank, and IDFC First Bank, along with strength in HDFC Bank, ICICI Bank, and SBI, reinforced investor optimism and supported the ongoing bullish sentiment in the banking space.
Bank Nifty’s technical setup continues to reflect strengthening momentum, with the RSI edging higher and holding firmly in the bullish zone near 67. The MACD remains above its signal line with a positive crossover, reinforcing the prevailing upward bias. While short-term sentiment appears encouraging, the index is yet to deliver a decisive breakout to confirm sustained directional strength. Traders should maintain a measured approach, focusing on quality setups and avoiding aggressive bets until a clear trend emerges, ensuring disciplined participation amid evolving market conditions.
Bank Nifty ended the session near its day’s high, maintaining a strong position above all key moving averages, a clear sign of sustained sectoral strength. Continued optimism could propel the index toward its previous peak of 57,628, offering an upside potential of around 2% from current levels. However, after the recent advance, minor profit-taking at higher levels cannot be ruled out. On the downside, 55,300 and 55,000 remain critical support zones, serving as key reference points for short-term trend stability and potential accumulation on any corrective dips.
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.
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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.
