Broader indices mirrored weakness, with Midcap and Smallcap indices falling 0.7% and 0.4%, respectively. On the macro front, steady domestic demand and robust consumption continue to offset external headwinds, such as recent U.S. tariffs on Indian exports.
Meanwhile, the RBI’s unchanged policy stance underpins stability. Investors remain watchful for cues from global markets and policy changes, as near-term volatility may persist.
Two stock recommendations for today by MarketSmith India
Buy: Graphite India Ltd. (current price: ₹590)
- Why it’s recommended: Leadership position in graphite electrode manufacturing, global recovery in steel production, export opportunities and diversified client base, and focus on R&D and product quality improvement.
- Key metrics: P/E: 31.60, 52-week high: ₹ 622, volume: ₹ 589.8 crore
- Technical analysis: Cup-with-handle breakout on above average volume
- Risk factors: Volatility in graphite electrode prices and raw material, environmental regulations and carbon emission norms, and margin pressure due to the cyclical nature of the business
- Buy: ₹ 585–600
- Target price: ₹680 in two to three months
- Stop loss: ₹550
Buy: JM Financial Limited (current price: ₹177.80)
- Why it’s recommended: Diversified financial services franchise & strong brand, strategic shift toward fee-based, and capital-light model
- Key metrics: P/E: 15.99; 52-week high: ₹200; volume: ₹87.42 crore
- Technical analysis: 50-DMA retake
- Risk factors: Legacy credit & asset quality pressure
- Buy at: ₹177.50–179
- Target price: ₹193 in two to three months
- Stop loss: ₹172
How the market performed on 8 October
On Wednesday, Indian equities ended lower as cautious sentiment prevailed amid weak global cues and currency pressures. Nifty 50 slipped 0.25% to close at 25,046.15, down 62 points, while market breadth remained negative with 1,250 stocks advancing against 1,864 declining.
Persistent strength in the US dollar and reports of the RBI intervening near the ₹88.80/USD level kept investors on edge, even as foreign inflows moderated.
On the sectoral front, Financials and IT led the decline, with Banking majors and large-cap tech names witnessing profit booking ahead of Q2 earnings. In contrast, Metal and Energy stocks showed relative resilience, aided by firm commodity prices. Nifty Bank and Nifty IT indices shed around 0.5–1%, while Nifty Metal gained modestly.
From a technical perspective, Nifty 50 appears to be entering a phase of short-term stabilization following its recent corrective decline. The index is successfully reclaiming the 100-DMA marking an encouraging shift in momentum, signalling a revival of buying interest near key support zones.
The 14-period RSI has rebounded from oversold levels, suggesting that the intensity of selling pressure is easing and that a short-term base may be forming. Moreover, Nifty’s decisive move above its downward-sloping trendline confirms a potential trend reversal, indicating that bearish momentum is losing strength. Importantly, the MACD is approaching a bullish crossover, which, if confirmed, could further validate the emerging recovery setup.
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.
Nifty 50 paused after four consecutive sessions of gains, closing marginally lower yet maintaining its strength above all key moving averages, indicating no signs of weakness. The index now faces immediate resistance near 25,200, followed by a crucial hurdle at 25,500. A decisive breakout and close above this zone could further fuel bullish momentum, paving the way for an advance toward 25,650–25,700. On the downside, 24,900–24,800 acts as a strong support, where buying interest is expected to emerge on any short-term dips, keeping the overall trend firmly positive.
How did Nifty Bank perform?
Nifty Bank opened on a weak note and traded in negative territory throughout the session, ending the day with a loss of 221 points (-0.39%). On the daily chart, it has formed a bearish candle with a lower-high and lower-low price structure, indicating mild profit-booking after a strong six-day winning streak.
The index opened at 56,095.50, touched an intraday high of 56,303.60, and a low of 55,821, before settling at 56,018.25. Despite the pullback, the broader trend remains constructive, and any decline toward near-term supports could attract buying interest as long as the index sustains above its key moving averages.
Bank Nifty’s momentum indicator, RSI, has turned slightly lower, hovering near 60, indicating mild profit booking. However, the MACD continues to trade above the signal line with a positive crossover, maintaining a bullish undertone. While short-term sentiment remains constructive, the broader structure lacks clear breakout confirmation. Traders are advised to stay selective and cautious, avoiding aggressive positions until a decisive trend emerges.
Despite the decline, Nifty Bank managed to close above its 100-DMA, keeping the broader bullish momentum intact and reflecting continued optimism in the Banking space. If the positive sentiment sustains, the index could advance toward its previous high near 57,628, marking an upside potential of around 2.8% from current levels. However, some profit-booking at higher zones cannot be ruled out after the recent rally.
On the downside, immediate support is placed near 55,200, followed by 55,000, which will act as crucial reference points to gauge short-term trend stability and potential buying zones on any pullbacks.
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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.