Indian equity markets ended the week of October 5–9, 2026, on a positive note, with the Nifty50 rising 0.44%, snapping an eight-week losing streak – the longest weekly losing streak in the last 25 years.
Friday’s rebound in the market was led by strong buying in IT stocks following TCS’s encouraging Q2 results, alongside gains in FMCG, banking, auto and broader mid-cap stocks. However, persistent FII outflows, elevated crude oil prices above $100 per barrel and concerns over tighter monetary conditions continue to weigh on sentiment.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, Friday’s rebound towards 22,500 offers early signs of a potential bottoming process. The triple bullish divergence on the RSI across the Nifty 50, Nifty 500, Nifty Midcap 100 and Nifty Midcap 150 remains significant.
“This suggests that the deterioration in price action is not being confirmed by downside momentum, increasing the possibility of a meaningful reversal. The 22,200–21,900 zone remains a crucial support area, while 22,800 is the immediate resistance. A sustained breakout above 22,800 could strengthen the recovery and open the door towards 23,200,” said Patel.
“Volatility may persist, deeply oversold conditions, and bullish divergence provide grounds for cautious optimism. However, sustained buying is essential to confirm a broader trend reversal,” Patel added.
For Bank Nifty, 55,500 remains the immediate resistance, and a sustained breakout above this level could extend the recovery and reinforce bullish momentum. On the downside, 54,300 has emerged as an important support. As long as Bank Nifty sustains above this level, the near-term outlook remains constructive, with a decisive move above 55,500 likely to trigger further upside, said Patel.
Stock picks
Tata Consultancy Services (TCS) | Accumulate between ₹2,160 and ₹2,100 | Target price: ₹2,400 | Stop loss: ₹2,000
As per Patel, TCS is currently reversed from the major support zone of ₹2,000– ₹1,970, which is likely to act as an important cushion on the downside.
The daily RSI has formed a regular bullish divergence, followed by a hidden bullish divergence, during the period from March 2026 to September 2026, indicating improving underlying momentum despite weakness in price action.
The combination of a strong support zone and positive momentum signals suggests the possibility of a recovery from current levels.
“As long as the ₹2,000– ₹1,970 support zone holds on a closing basis, we expect the stock to gradually move higher. Thus, accumulate TCS between ₹2,160- ₹2,100, keeping a target price of ₹2,400 and a stop loss of ₹2,000,” said Patel.
HDFC Life Insurance Company | Buy between ₹558 and ₹550 | Target price: ₹610 | Stop loss: ₹526
Patel underscored that HDFC Life Insurance Company shares are showing signs of a potential bullish reversal, supported by multiple bullish divergences that have emerged since April 2026.
These divergences indicate that selling pressure may be weakening, and underlying momentum is gradually improving. Additionally, the stock has breached its prevailing bearish trendline, signalling a possible change in the near-term technical structure.
“The combination of repeated bullish divergences and the trendline breakout strengthens the possibility of further upside from current levels. Investors may consider accumulating the stock in the ₹558– ₹550 range, with an upside target of ₹610. However, sustaining above the breakout zone will be important to maintain positive momentum,” said Patel.
“A strict stop-loss at ₹526 is recommended to manage downside risk. Overall, the technical setup appears favourable for a potential recovery, subject to continued buying interest,” said Patel.
Cipla | Sell between ₹1,320 and ₹1,330 | Target price: ₹1,220 | Stop loss: ₹1,370
Cipla share price is witnessing increasing technical weakness after breaking below its major pivot support zone of ₹1,340– ₹1,345, which also aligns with the 200-week EMA, as depicted on the chart.
This breakdown is significant as it indicates a deterioration in the stock’s long-term technical structure.
The weekly RSI remains within the 20–60 bearish range and has formed a triple top near the 60 mark, highlighting repeated resistance to bullish momentum.
Furthermore, the weekly RSI has faced resistance near 50, while the daily RSI has slipped below 30, indicating deeply oversold short-term conditions.
“Despite the possibility of intermittent technical rebounds, the broader momentum remains weak. Unless Cipla reclaims its broken support zone, the stock may continue to face selling pressure, keeping the near-term outlook bearish,” said Patel.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
