India's Nifty 50 Recovers; Analyst Picks SBI, HCL Tech, Eicher Motors
Sumeet Bagadia of Choice Broking noted improving short-term sentiment in India's Nifty 50 after benchmark indices ended an eight-week losing streak, despite underlying weakness.
Indian Market Rebounds Amid Shifting Sentiment
India's key stock market indices staged a significant rebound on Friday, October 9, breaking an eight-week losing streak for both the Nifty 50 and Sensex. The Nifty 50 advanced by 1.30%, while the Sensex gained 1.23%. The Bank Nifty also recovered, rising 1.36%.
Sumeet Bagadia, Executive Director at Choice Broking, observed an improvement in short-term market sentiment, though he cautioned that the broader market structure remains weak below key moving averages.
The rally saw leadership from IT stocks, following Tata Consultancy Services' September-quarter results, with buying interest extending into fast-moving consumer goods (FMCG), auto, and financial shares.
Volatility Eases as Domestic Investors Bolster Market
Bagadia highlighted a balanced derivatives setup, with the Put-Call Ratio (PCR) at 0.98. India VIX, the country's volatility index, eased to 14.375, reflecting reduced market uncertainty. Despite challenging macroeconomic conditions, including Brent crude trading above $100 a barrel, domestic institutional investors (DIIs) provided crucial support.
DIIs recorded net purchases of approximately ₹40,355 crore in October so far, largely offsetting the net outflows of around ₹39,779 crore by foreign institutional investors (FIIs) over the same period. This domestic demand has helped stabilise the market.
Key Stock Recommendations Highlight Demand
Sumeet Bagadia recommended three specific stocks for investors: State Bank of India (SBI), HCL Technologies (HCL Tech), and Eicher Motors. SBI's share price stabilised around ₹959.10, finding support within its broad trading range and near its 100-week Exponential Moving Average (EMA) at ₹930.47.
HCL Tech triggered a technical rebound from a falling wedge pattern, respecting a demand zone of ₹1,180–₹1,200 and closing at ₹1,217. Eicher Motors also initiated a strong rebound after testing its multi-month demand zone around ₹6,700–₹6,800, finishing the session at ₹7,050.
For the Nifty 50 index, Bagadia identified immediate support between 22,250 and 22,400, with a key resistance zone at 22,650–22,700. Its Relative Strength Index (RSI) improved to 36.50, up from an average of 31.48, indicating a gradual recovery from oversold conditions. The Bank Nifty index sees immediate support at 54,800–55,000, and the next resistance zone is 55,500–55,800.
Its RSI rose to 45.20 from an average of 38.02, signalling improving momentum. Sustaining the rebound and moving above these resistance levels will be critical for continued market improvement.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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