Stock market recap: India’s benchmark equity indices extended their winning streak for a fourth consecutive session on Monday, driven primarily by robust Q2 corporate earnings and a favourable global cues.
The Nifty 50 gained 133.30 points (+0.52%) to close at 25,843.15, while the Sensex advanced 411.18 points (+0.49%) to settle at 84,363.37. Market momentum was anchored by heavyweights, notably Reliance Industries, which surged more than 3.5% following its Q2FY26 earnings, along with strength in select IT and private banking stocks like Axis Bank and TCS.
Conversely, profit-taking was observed in metal stocks and some financial majors, including ICICI Bank, which limited broader gains.
Two stock recommendations by MarketSmith India for 23 October
Buy: Tilaknagar Industries Ltd (current price: ₹488)
- Why it’s recommended: Premiumisation and volume expansion, market share gains, and geographic rollout.
- Key metrics: P/E: 32.75, 52-week high: ₹530, volume: ₹120.75 crore
- Technical analysis: Downward-sloping trendline breakout
- Risk factors: Brand acquisition and execution risk, competitive pressure, and modest product growth.
- Buy: ₹480–490
- Target price: ₹550 in two to three months
- Stop loss: ₹464
Buy: Delhivery Ltd (current price: ₹475)
- Why it’s recommended: Scaled, automated network and multi-service breadth and mix shift toward higher-margin PTL & SCS.
- Key metrics: P/E: 175.62; 52-week high: ₹708; volume: ₹118.84 crore
- Technical analysis: Downward sloping trendline breakout
- Risk factors: Commodity/fuel, FX, and interest-rate exposure, pricing pressure, and competitive intensity.
- Buy at: ₹470–478
- Target price: ₹540 in two to three months
- Stop loss: ₹446
How the Nifty 50 performed on 20 October
Indian equities extended gains on Monday, supported by strength in IT, PSU banks, and healthcare shares. The Nifty 50 rose 133 points (+0.52%) to close at 25,843.15, while the Sensex advanced around 411 points to settle near 85,000. The broader market maintained a positive undertone, as the advance-decline ratio stood at 1.5:1 (1,884 stocks advanced; 1,244 declined), indicating broad-based participation.
On the sector front, Nifty IT (+0.98%), PSU Bank (+2.87%), Pharma (+0.84%), and Oil & Gas (+1.42%) led the rally, while Auto (-0.16%), FMCG (-0.03%), and Metal (-0.07%) saw mild profit-booking. Gains in Infosys, HDFC Bank, and ONGC helped offset weakness in select consumer names. Investor sentiment remained upbeat amid stable global cues and expectations of sustained domestic inflows, keeping the market tone constructively biased in the near term.
The Nifty 50 registered a fresh 52-week high, decisively breaking out of its recent consolidation phase and reinforcing a strong upward bias. The index now trades comfortably above all key moving averages, each of which has begun to slope upward, signalling a resumption of bullish momentum. The underlying price structure reflects trend strength, supported by robust volume participation, underscoring investor conviction in the rally.
Momentum indicators further validate the positive setup. The 14-day RSI has risen to 72, highlighting improving strength while remaining below overbought levels, suggesting scope for additional upside. Meanwhile, the MACD has generated a fresh bullish crossover above its signal line and turned positive, confirming a clear shift in momentum in favor of buyers.
According to O’Neil’s methodology of market direction, the market status has been shifted to a “Confirmed Uptrend” as the index decisively surpassed its previous rally high of 25,670 to register a new 52-week.
The Nifty 50 touched a fresh 52-week high and closed above the 25,800 mark, underscoring sustained strength in the ongoing uptrend. The index now faces resistance in the 26,000–26,300 range. A decisive breakout above this range could open the path toward new all-time highs.
On the downside, 25,450 serves as the immediate support, with a stronger base near 25,000. Sustaining above these key levels will be essential for maintaining bullish momentum and validating the breakout. The broader market structure remains constructive, supported by improving market breadth, sectoral rotation, and steady institutional participation, which collectively reinforce a positive medium-term outlook.
How did Nifty Bank perform?
The Bank Nifty advanced 0.55% to close at 58,033, adding 319 points amid steady buying interest in Financials. The index traded in a narrow range between 57,873 and 58,262, holding above the 57,700 support zone and signaling short-term strength. Gains were led by PSU banks, with the Nifty PSU Bank index surging 2.87% as investor sentiment improved, following strong quarterly results and easing bond yields. Private banks also posted moderate gains, with the Nifty Private Bank index up 0.67%, while the broader Nifty Financial Services index edged 0.05% higher.
The Bank Nifty extended its uptrend to close at 58,033, marking a 0.55% gain for the session and sustaining above all key moving averages. The index has firmly broken past its 100- and 50-DMA (55,867 and 55,310, respectively), confirming a strong bullish structure. Price action shows a clear sequence of higher highs and higher lows, supported by rising volumes, indicating robust institutional participation. The 14-day RSI has surged to 76.7, entering the overbought zone, suggesting that while momentum remains strong, a short-term pause or mild retracement cannot be ruled out. Meanwhile, the MACD continues to exhibit a positive crossover, with widening histogram bars and a rising signal line, reinforcing the ongoing bullish momentum.
The overall trend for the Bank Nifty remains decisively bullish, with the index trading well above all its key moving averages, reaffirming strong upward momentum.
Immediate support is near 57,500, followed by ~56,000. On the upside, a sustained move above 58,550 could trigger a fresh leg of the rally, potentially extending the advance toward the 60,000 mark. The broader setup indicates continued strength, though short-term consolidation cannot be ruled out after the recent sharp upmove.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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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.
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