Stock market today: The domestic benchmark indices, Sensex and Nifty 50, continued their upward trend on Friday, showing gains for the second consecutive session. This rise was driven by buying activity in the metal and telecom sectors, buoyed by positive momentum in global markets.
The 30-share BSE Sensex rose by 223.86 points, or 0.28%, closing at 81,207.17. Throughout the day, it fluctuated between a high of 81,251.99 and a low of 80,649.57, demonstrating a range of 602.42 points. Similarly, the Nifty 50 increased by 57.95 points, or 0.23%, settling at 24,894.25.
Looking at the weekly performance, the BSE benchmark gained 780.71 points, or 0.97%, while the Nifty 50 also rose by 239.55 points, reflecting a 0.97% increase.
Dharmesh Shah from ICICI Securities notes that if the Nifty 50 can maintain levels above 24,800 in the coming sessions, it could revitalise upward momentum and signal a resumption of the uptrend. This could potentially drive the index towards the 25,300 to 25,500 range in the weeks ahead. Shah recommends two stocks to buy this week. Investors should consult experts before making decisions. Here’s what he says about the overall market.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Equity benchmark concluded volatile truncated week on a positive note as RBI’s Banking reforms boosted the market sentiments. Nifty 50 gained ~240 points to settle at 24,894. Broader market outperformed by gaining ~2%. Sectorally, all indices closed in green lead by Financials, Metal and defense. The weekly price action formed a small bull candle indicating, pause in downward momentum.
Key point to highlight is that, over past ten sessions index has undergone retracement of prevailing up move wherein follow through strength has been missing. Hence, sustainability above 24,800 levels over next couple of sessions would revive the upward momentum and confirm resumption of uptrend driving Nifty 50 towards 25,300-25,500 zone in upcoming weeks.
Meanwhile, strong support is placed in the range of 24,400-24,200 zone.
Structurally, 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, with 3.5% correction already in place along with 8 consecutive negative close, we expect index to maintain the same rhythm and stage a strong rebound. Hence, focus should be on accumulating quality stocks with strong earnings.
Further, as per seasonality, October despite being a volatile month, has been one of the best month for markets in last 12 years. Nifty 50 has given positive returns on 9 out of 12 occasions. The average return for Nifty 50 for October in last 12 years was >3%.
On the sector front, BFSI, Metal & Oil & Gas, which cumulatively carries 50% weightage in Nifty 50 would provide impetus to head toward 25,500 in coming weeks.
a. Bank Nifty has witnessed buying demand from 100 days EMA which has been held since April that helped index to recoup last week’s lost ground and closed above 55,500 marks.
b. Nifty Metal Index: The formation of higher peak and trough helped index to trade in the vicinity of All time High after 15 months.
c. Oil & Gas: After 3 months breather Oil & Gas sector resuming uptrend post strong base formation at 200 days EMA.
Key Monitorable for next week:
a. Development on tariff negotiations
b. Beginning of Q2FY26 earning season
c. Quarterly business updates
d. Brent crude decline below 4 months low of 65 resulted into revers flag breakdown, indicating continuation of corrective bias towards 60. Falling crude oil prices bodes well for domestic market.
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying (SBI), and Ltd (HPCL).
Buy SBI shares in the range of ₹845-868. He has SBI share price target of ₹950 with a stop loss of ₹814.
Buy HPCL shares in the range of ₹432-445. He has SBI share price target of ₹ ₹478 with a stop loss of ₹419.
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 02/10/2025 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.