The market’s early surge, which saw Nifty momentarily breach 26,100, was largely fuelled by optimism around a potential India-US trade deal and sustained buying from foreign institutional investors (FIIs).
The IT index was the standout performer (up ~2.2%), led by gains in giants such as Infosys following its buyback announcement. The rally’s narrow focus warrants caution as investors look ahead to more Q2 earnings.
Two stock recommendations by MarketSmith India for 24 October
Buy: IDBI Bank Ltd(current price: ₹95)
- Why it’s recommended: Strong parent backing from LIC and the government of India, improvement in asset quality (declining NPAs), consistent profitability and turnaround in financial performance, focus on retail lending and digital banking expansion, improved cost-to-income ratio and operational efficiency
- Key metrics: P/E: 12.85, 52-week high: ₹106.32, volume: ₹143.39 crore
- Technical analysis: Reclaimed its 100 DMA on above average volume
- Risk factors: Delays or uncertainties in the privatization process, exposure to stressed sectors or borrowers, vulnerability to interest rate fluctuations, regulatory or policy-related risks
- Buy: ₹95–97
- Target price: ₹110 in two to three months
- Stop loss: ₹90
Buy: Multi Commodity Exchange of India Limited (current price: ₹9,259)
- Why it’s recommended: Expanding product suite & higher derivatives participation, structural growth in commodity volumes amid volatility
- Key metrics: P/E: N/A; 52-week high: ₹9,617; volume: ₹544.13crore
- Technical analysis: Breakout retest
- Risk factors: Commodity vulnerability & volume cyclicality, concentration risk & limited diversification
- Buy at: ₹9,250–9,350
- Target price: ₹9,900 in two to three months
- Stop loss: ₹ 9,030
How the market performed on 23 October
Indian equities ended marginally higher on Thursday amid mixed global cues and selective buying in technology and banking stocks. Nifty 50 edged up 20 points, or 0.08%, to settle at 25,888.9, after oscillating between 25,862 and 26,104 during the session. Sensex followed a similar trajectory, reflecting a cautious undertone ahead of key earnings announcements.
Market breadth remained negative, with 1,312 stocks advancing and 1,808 declining, indicating broader weakness despite the index resilience. Sectorally, Nifty IT (+2.2%) led the gains on renewed buying in large-cap tech names, while Private Banks and FMCG also supported sentiment. In contrast, Oil & Gas, Healthcare, and Midcap Healthcare indices underperformed. Nifty Pharma and Auto sectors also saw mild profit booking.
The index registered a fresh 52-week high, decisively breaking out of its recent consolidation phase and reinforcing a strong upward bias. It now trades comfortably above all key moving averages, each of which has begun to slope upward, signaling a resumption of bullish momentum.
The underlying price structure reflects trend strength supported by robust volume participation, underscoring investor conviction in the rally. Momentum indicators further validate the positive setup: the 14-day RSI has risen to 73, highlighting improving strength while remaining below overbought levels, suggesting scope for additional upside. Meanwhile, the MACD has generated a fresh bullish crossover above its signal line and turned positive, confirming a clear shift in momentum in favor of buyers.
According to O’Neil’s methodology of market direction, the market status has been shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.
The index touched a new 52-week high and closed just below 25,900, reaffirming the strength of the prevailing uptrend. The index now faces a critical resistance zone in 26,000–26,300, and a decisive breakout above this band could pave the way toward new all-time highs. On the downside, 25,450 serves as immediate support, while a stronger base has been established near 25,000. Sustaining above these levels will be essential to preserving the bullish structure and confirming the recent breakout.
How did Nifty Bank perform?
Nifty Bank advanced 0.12% to close at 58,078, adding 70 points amid sustained buying interest in banking heavyweights. The index traded in a tight range between 57,951 and 58,577, maintaining its position well above key support levels and reflecting continued short-term strength. Momentum was supported by both private and PSU banks, with sentiment boosted by improving credit growth trends and stable macro indicators. It continues to trade well above all its key moving averages, underscoring strong market confidence and indicating that the bullish undertone remains firmly intact despite minor intraday fluctuations.
The relative strength index (RSI) currently stands at 76.64, signaling strong bullish momentum but also indicating slightly overbought conditions, warranting cautious optimism. The RSI’s sustained position above 70 reflects strong demand in the banking space. Meanwhile, the MACD indicator continues to exhibit a positive crossover, with the MACD line significantly above the signal line — reinforcing the bullish bias and confirming the strength of the ongoing trend. Momentum indicators collectively suggest continued upside, though minor consolidation cannot be ruled out.
The overall trend for Bank Nifty remains decisively bullish, with the index trading well above all its key moving averages, reaffirming strong upward momentum. Immediate support is now placed near 57,500, while the next significant support zone is seen around 56,000. On the upside, a sustained move above 58,550 could trigger a fresh leg of the rally, potentially extending the advance toward 60,000. The broader setup indicates continued strength, though short-term consolidation cannot be ruled out after the recent sharp upward movement.
MarketSmit 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.
