Stock market news: The Indian stock market ended on a positive note on Friday, with the Sensex increasing by approximately 484 points or 0.58% to reach 83,967, while the Nifty 50 rose by 125 points or 0.49% to 25,709. This surge followed a sluggish beginning, impacted by underperforming Asian markets and geopolitical uncertainties, but robust buying in major stocks like Asian Paints, Bharti Airtel, M&M, ITC, HUL, and Reliance Industries led to a strong closing.
Experts noted that notably, declining crude oil prices eased cost pressures and benefited stocks sensitive to raw material costs, particularly paint companies that experienced significant increases. Moreover, SEBI’s announcement to enhance rules regarding algorithmic and high-frequency trading strengthened capital market-related stocks. The rupee also maintained relative stability, which helped reduce external risks.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Equity benchmarks extended gains and closed at 4 months high at 25,710, up 1.7%. Sectorally, Financials, FMCG, realty outshone. The weekly price action formed a sizable bull candle forming higher high-low despite volatile global cues, indicating inherent strength. The series of higher high-low formation helped index to log a resolute breakout from one year falling trend line, indicating conclusion of corrective bias that has opened the door for next leg of up move towards All-Time high of 26,300 for the coming months.
Hence, any decline from hereon amid global volatility coupled with ongoing earning season should be capitalized to accumulate quality stocks with strong earnings as strong support is placed at 25,200 being 50% retracement of current leg of up move (24,587-25,782).
Our positive bias is further validated by following observations:
- Following the Auto and Metal sector the Bank Nifty has now clocked a fresh All Time High, indicating renewed strength that would provide impetus for Nifty 50 to head towards 26,300 in coming month as Bank Nifty carries 36% weightage in Nifty 50.
- In the upcoming truncated week market will react to key index heavy weight earnings carrying 35% of Index weightage which would dictate the further course of action.
- The current up move is backed by the improvement in market breadth as currently the ratio chart of stocks hitting new 52 weeks high vs new 52 weeks low (Nifty 500 Universe) continues to inch upward, highlighting strengthening of rally.
- Nifty 50 has been maintaining the rhythm of witnessing rally after approaching maturity of price and time wise correction. As Nifty 50 has rallied 18% off April low, within which intermediate corrections arrested within 3-5% range. Meanwhile, timewise, over past three decades, there have been 12 instances wherein index has staged a strong rebound after consecutive 8 sessions negative close, garnering 7% rolling return in a month. In current scenario, index has rallied ~5%.
Key Monitorable:
a. Development on tariff negotiations.
b. Gold: With > 60% up move in this year the monthly RSI has surpassed 90 levels for the first time since 1980. Such overbought conditions suggest possibility of short-term breather wherein Gold can consolidate in $4400-$3900 range.
c. Cool off in the US 10 Year Yield augurs well for inflows in emerging markets.
d. Crude Oil: The formation of lower high-low on the weekly chart clearly indicates weakness that bodes well for domestic market.
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying , and .
Buy Axis Bank shares in the range of ₹1,162-1,200. He has Axis Bank share price target of ₹1,320 with a stop loss of ₹1,107.
Buy Kansai Nerolac Paints shares in the range of ₹244-254. He has Kansai Nerolac Paints share price target of ₹285 with a stop loss of ₹230.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 17/10/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.