Two stock recommendations by MarketSmith India:
Buy: Deepak Fertilisers and Petrochemicals Corp. Ltd (current price: ₹1,519)
Why it’s recommended: Strong position in industrial and mining chemicals, diversified portfolio across chemicals and fertilisers, ongoing capacity expansion for growth, rising share of speciality fertilizers, and solid credit rating and financial strength.
Key metrics: P/E: 18.64 | 52-week high: ₹1,778.60 | Volume: ₹212.39 crore
Technical analysis: Reclaimed its 100-DMA with above-average volume
Risk factors: Cyclicality and price volatility in chemicals, regulatory and subsidy risks in fertilisers, high debt-funded capex execution risk, feedstock cost fluctuations (gas, ammonia), and demand slowdown in mining/infrastructure.
Buy: ₹1,510-1,530
Target price: ₹1,699 in two to three months
Stop loss: ₹1,440
Buy: HLE Glascoat Ltd (current price: ₹550.70)
Why it’s recommended: Strong order-book and demand visibility, acquisitions and geographic/segment expansion
Key metrics: 46.35: 46.21 | 52-week high: ₹579.50 | Volume: ₹102.15 crore
Technical analysis: Trendline breakout retest
Risk factors: Working capital & manufacturing cycle intensity, Raw material price volatility/macro sensitivity
Buy at: ₹545-555
Target price: ₹640 in two to three months
Stop loss: ₹505
How Nifty 50 performed yesterday
Indian equities ended mildly lower on 28 October, as profit-taking in heavyweight sectors capped gains amid cautious global cues. The Nifty 50 slipped 29.85 points, or 0.11%, to close at 25,936.20, after oscillating between 25,810 and 26,042 during the session. The broader market showed weakness, with an advance-decline ratio of 1,385:1,730, indicating negative market breadth. Sectorally, Metals and PSU Banks outperformed, rising 1.2% each, supported by gains in select steel and public sector lenders. Meanwhile, FMCG, IT, and consumer durables lagged, losing 0.5-0.7% amid profit-booking. Realty and Auto stocks also traded subdued. The Nifty Mid and Small Healthcare index added 0.17%, indicating resilience in the broader healthcare space.
The Nifty 50 continues to trade comfortably above all its key moving averages, reinforcing the prevailing bullish structure. The recent breakout from a long-term descending trendline, drawn from previous swing highs, marks a potential transition into a higher trading range. Momentum indicators further support this positive bias—the RSI at 70 reflects robust upward momentum, though it also suggests the index may be entering an overbought territory, warranting caution for short-term consolidation. Meanwhile, the MACD remains firmly above its signal line, with a widening spread indicating sustained buying interest and underlying market strength.
According to O’Neil’s methodology of market direction, the market status has shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.
After reaffirming its positive momentum earlier in the week, the index witnessed volatile trading on the monthly expiry day and eventually closed flat. Despite the consolidation, the broader market structure remains constructive as long as the index holds above 25,400, a crucial breakout zone that coincides with the downward-sloping trendline. On the technical front, Nifty faces a key resistance zone between 26,000 and 26,300. A decisive breakout above this range could set the stage for new all-time highs. On the downside, immediate support lies at 25,400, while a stronger base around 25,000 continues to reinforce the prevailing uptrend.
How did Nifty Bank perform yesterday?
The Nifty Bank opened on a negative note but witnessed gradual buying interest throughout the session, helping it recover and close in positive territory at 58,214.10, up by 0.17%. The index recorded an intraday high of 58,313.80 and a low of 57,770.35, reflecting a session of steady yet cautious movement. The daily candlestick pattern formed a small-bodied bullish candle, indicating a mild continuation of the ongoing uptrend with hints of consolidation at higher levels. The index continues to trade well above its key moving averages, underscoring a robust and sustained bullish sentiment that highlights strong underlying momentum in the broader banking sector.
The relative strength index (RSI) currently stands at 72.88, indicating that the index has entered the overbought zone. While this signals strong underlying momentum, it also suggests the possibility of short-term consolidation or minor profit booking. The MACD remains in positive territory, with the MACD line positioned above the signal line, reinforcing the bullish bias. Although the histogram shows signs of flattening, the overall momentum remains intact, suggesting that buyers are still in control, despite a slight moderation in momentum.
From a technical standpoint, immediate support for the index lies near 57,500, followed by a stronger base around 56,600, which aligns with the 21-day moving average (21-DMA). On the upside, a decisive breakout above 58,550 could open the gates for a potential rally toward the 60,000 mark in the near term. The broader structure remains constructive, and as long as the index sustains above its short-term supports, the prevailing bullish trend is expected to continue. Any dips toward support zones are likely to attract fresh buying interest, keeping sentiment upbeat among both traders and investors.
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.
