Equity benchmarks showed resilience in the final trading session, with the Nifty 50 recovering 140 points from intraday lows to close above the crucial 22,800 mark. According to CNBC TV18, the recovery came after a challenging session that saw the familiar script of selling pressure until 3 PM, with key support levels on the verge of being broken. The broader markets continued to face pressure, with the advance-decline ratio showing a yawning gap in favor of declines, as 420 stocks on Nifty 500 ended in the red. The real pain stayed in the mid and small-cap segments, with 85 stocks on Midcap index and 91 stocks on Smallcap index ending with losses in mid-week trading.
Persistent Systems has formed a bullish pole and flag pattern clubbed with a 200 DMA crossover on daily charts, allowing the stock to break out from its correction that was in place from the start of this year. As reported by Nuvama Professional Clients Group, the stock is trading near its recent highs with a buy target of ₹6,400 and stop-loss at ₹5,490. Sagility has demonstrated a higher low structure on daily charts, with the stock once again reclaiming back above its 200 DMA. The stock is trading near its recent highs with a buy target of ₹48 and stop-loss at ₹42.5. Waaree Energies has given a 6-month sloping trendline breakout earlier this month and retested this breakout zone confirming buyer presence at lower prices, with a buy target of ₹2,700 and stop-loss at ₹2,320.
PTC Industries has demonstrated a classic resistance-turned-support setup, successfully holding above the earlier breakout zone near ₹24,000 following a brief consolidation. As reported by LKP Securities, the stock continues to trade near its lifetime highs while maintaining a robust higher-high, higher-low structure with a buy target of ₹26,200 and stop-loss at ₹24,100. Wipro is witnessing a mean-reversion rally, having reclaimed its short- and medium-term daily moving averages along with its 20-week moving average on the weekly chart. According to SBI Securities, positive RSI divergence indicates improving momentum with a buy target of ₹200 and stop-loss at ₹181.
RBL Bank Futures has witnessed a breakdown from its consolidation pattern, accompanied by a long bearish candlestick, indicating heightened selling pressure. As reported by SBI Securities, the breakdown has pushed the stock below its crucial 20-DMA and 100-DMA, weakening its technical structure with a sell target of ₹342 and stop-loss at ₹366. Cochin Shipyard has witnessed a decisive breakdown below its crucial support zone of ₹1,185–1,205, signalling deterioration in its technical structure. According to SBI Securities, the stock is trading significantly below its key moving averages with a sell target of ₹1,085 and stop-loss at ₹1,190. Varun Beverages has witnessed a breakdown below its rising channel, trading nearly 5% below its 20-day EMA and around 11% below its 200-day EMA. The stock is likely to test ₹380 in the short term with a sell target of ₹380 and stop-loss at ₹420.
Nifty has retested its 200 WMA on downside after reclaiming and negating the same last week with a weekly closing above 23,100. Given that this retracement co-indices with a 50% retracement of its recent rally of 1,000 points, current leg is now open for a retest of 23,100 and beyond. As per Nuvama Professional Clients Group, dip below 22,800 are likely to get bought into. Brent crude has surged to a 6-month high of $110 per barrel on the active contract, while the spread between US10Y and India 10Y is now nearing 230 bps from a low of 180 bps at the start of this month. The spotlight has been on the Jio Platforms IPO, which has already received hefty subscription in the first day of bidding, with bids worth nearly ₹70,000 crore already being placed. The subscription has been led by institutional investors with the portion reserved for them seeing the overall subscription of nearly 10x already, with the retail segment also seeing near-full subscription. Ahead of the much awaited listing on October 28, the grey market premium of the shares stood at 22%, with a minor fall from ₹250 to ₹248. The ₹30,213 crore issue — the largest by size in India so far — saw heavy institutional demand, with experts expecting modest gains on the listing day if conditions remain favorable.
