Indian equities ended the September 21–25 week on a weak note amid heightened volatility, with Nifty falling sharply during the week. According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the index has now declined for seven consecutive weeks - its longest streak since the COVID pandemic. In intraday trade on Monday, 28 September, the Nifty declined 1.4% to hit an intraday low of 22,807. The index is trading below the crucial 23,000 support level, with 23,300–23,600 acting as key resistance zone. Bank Nifty is also under pressure near 55,500, with 55,000 as the next major support and 56,000 remaining the immediate hurdle. The benchmark indices corrected more than 1.5 percent on September 28, with market breadth strongly favouring bears as about 2,582 shares declined compared with 694 advancing shares on the NSE. Vishnu Kant Upadhyay, AVP- Research at Master Capital Services, noted that the decisive breach below 23,000 has opened the door for further downside towards 22,500, the next major support zone. Latest data shows Indian equity benchmarks faced their largest monthly drop since March, with the Nifty 50 and Sensex declining by 6.1% and 5.8%, respectively. The Nifty 50 declined 6.1% in September to 22,620.45, while the BSE Sensex fell 5.8% to 72,480.29, marking the second consecutive monthly decline for both benchmarks. As per HDFC Securities Senior Technical Research Analyst Nagaraj Shetti, the underlying trend of the Nifty 50 remains negative, with a weakness below 22,500 could trigger a further decline to the 22,200-22,100 levels in the near term.
LIC Housing Finance is showing a constructive technical setup, supported by a combination of hidden and regular bullish divergences on the RSI, indicating improving momentum despite the recent price correction. The stock has approached a strong support confluence formed by the 200-DEMA and the 61.8 percent Fibonacci retracement level, making this zone crucial for sustaining the broader structure. The presence of multiple technical supports in the same area further enhances the significance of this level. Traders may consider entering long positions in the ₹565-555 zone with a target of ₹630 and a stop-loss at ₹525. As per Jigar S. Patel, Senior Manager - Equity Research at Anand Rathi, this setup is supported by the combination of hidden and regular bullish divergences on the RSI, indicating improving momentum despite the recent price correction.
Indian Renewable Energy Development Agency (IREDA) is showing a constructive technical setup, with a bullish divergence developing near the monthly pivot, indicating the possibility of a reversal from the current levels. The divergence suggests that underlying momentum is improving despite the recent price action. Further supporting the setup, the hourly chart is witnessing a sharp surge in momentum, indicating increasing buying interest and improving short-term strength. Traders may consider entering long positions in the ₹115-113 zone with a target of ₹128 and a stop-loss at ₹107. As per Jigar S. Patel, this setup is further supported by the presence of a bullish divergence developing near the monthly pivot, indicating the possibility of a reversal from the current levels.
Mahindra & Mahindra is showing signs of a potential bullish reversal on the daily chart, with a bullish engulfing candlestick pattern emerging near the stock's previous demand zone, indicating renewed buying interest at an important support area. This setup is further supported by a nine-period bullish divergence on the RSI, suggesting that downside momentum may be weakening even as the price remains under pressure. Upadhyay from Master Capital Services recommends buying M&M with target prices of ₹3,200 and ₹3,300 and a stop loss at ₹2,900, noting that the stock has bounced from the crucial horizontal support zone of ₹2,900-₹2,970, indicating buying interest at lower levels. The ₹2,900-₹2,970 zone remains crucial for sustaining the ongoing rebound and preventing further downside, as sustained rebound from this support followed by decisive reclaim of short-term moving averages would improve the technical outlook.
Engineers India has delivered an all-time high breakout above the ₹305 mark on a closing basis, signalling a strong expansion from its prolonged consolidation phase. The breakout is supported by a substantial surge in volumes, adding conviction to the price action and indicating strong participation. The stock is comfortably sustaining above its key moving averages, with the 21, 55, 100, and 200 EMAs aligned positively, reinforcing the underlying bullish structure. Upadhyay recommends buying Engineers India with target prices of ₹345 and ₹350 and a stop loss at ₹285, noting that sustenance above ₹305 is expected to keep the breakout intact and may pave the way for further upward momentum. The formation of higher highs and higher lows further supports the prevailing uptrend, with the stock showing strong technical indicators across multiple timeframes.
Swiggy has witnessed an increase in open interest along with a fall in prices, indicating short additions. The stock did see some bounce in the past few weeks, but the move failed to sustain at higher levels, and prices have now broken below the consolidation range. As per the options data, there have been Call additions at the ₹270-300 strikes, indicating significant resistance on the upside, while there is no major Put base against this range. The maximum pain level is at ₹270, and the stock is trading well below that level, which is also negative. Traders may consider selling Swiggy Futures in the ₹256-253 range with a stop-loss above ₹265 and targets of ₹240 and ₹234. As per Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan, this setup is supported by the options data showing Call additions at higher levels with no major Put base against the resistance range.
Dr. Reddy's Laboratories has delivered a decisive breakout above the horizontal resistance near ₹1,200 on a closing basis, indicating a potential reversal in the short-term trend. The stock has reclaimed its major short-term EMAs and is now approaching the 200 EMA, a crucial resistance level. Earlier, the stock formed a base near ₹1,100, developing a double bottom pattern that has now been confirmed on the daily chart. The overall chart structure has improved, supported by renewed buying interest and strengthening momentum. The RSI has climbed to 63, indicating positive momentum and further upside potential. Upadhyay recommends buying Dr. Reddy's with a target price of ₹1,310 and a stop loss at ₹1,155, noting that sustenance above ₹1,200 remains crucial for continued recovery. The stock's technical setup reflects strong fundamentals and strong tech signals for the short term, making it suitable for a stock-specific approach in the current market environment.
Cyient is recommended as a buy at ₹1,098 with a target of ₹1,185 and stop loss at ₹1,050 for a 2-3 week timeframe. The range-bound action of the last month has resulted in an upside breakout, with bullish patterns like higher tops and bottoms intact and the stock price attempting to move higher after the higher bottom formation. Volume and RSI patterns indicate more upside in the near term. Conversely, Max Healthcare Institute is recommended as a sell at ₹925 with a target of ₹870 and stop loss at ₹955 for a 2-3 week timeframe. The healthcare stock has been in a downtrend over the last couple of months, with bearish patterns like lower tops and bottoms observed. Currently placed at the edge of a decisive breakdown of an important support of ₹910 levels, with a rise in volume during the breakdown and the daily RSI showing a bearish signal.
