Stock recommendations for 22 October from MarketSmith India

However, investors booked profits at higher levels, while Brent crude remained above $110 per barrel amid tensions around the Strait of Hormuz, keeping market sentiment cautious. The broader market bore the brunt, with Nifty Smallcap 100 falling about 2.5% and the midcap index declining nearly 2%. IT was the biggest gainer, gaining about 2%, led by Infosys, Tech Mahindra, TCS, and HCL Tech. Bajaj Finance, Eternal, Eicher Motors, Nestle, and Trent were among the biggest losers, while Autos, Chemicals, and Financials also weighed.

Breadth was deeply negative, with 608 stocks advancing, 2,988 stocks declining, and 102 remaining unchanged. Investors will track the Jio IPO subscription and quarterly earnings. Buy: Hexaware Technologies Limited (current price: ₹600) Indian equity markets ended Wednesday's session on a weak note, with Nifty 50 declining 77.60 points (0.34%) to 22,811.35, reflecting persistent selling pressure across most sectors.

The benchmark opened higher at 23,016 and touched an intraday high of 23,120.90 before reversing sharply to a low of 22,649.90. Although the index remained below its previous closing level of 22,888.95, a modest recovery toward the close helped limit losses. Sectoral performance was predominantly negative, with Consumer Durables (-1.86%), Metals (-1.71%), Auto (-1.54%), and Realty (-1.25%) leading the declines.

In contrast, Nifty IT surged 2.88%, providing a notable defensive cushion. Broader market sentiment remained extremely weak, with 608 stocks advancing, 2,988 stocks declining, and 102 remaining unchanged. This translates into an advance-decline ratio of approximately 1:4.91. Sensex also ended lower, shedding around 143 points (0.19%) to 73,709.69. Elevated crude oil prices, geopolitical uncertainty, and cautious sentiment amid corporate earnings added to volatility.

Nifty 50 ended the session at 22,811.35, declining 77.60 points (-0.34%), forming a bearish daily candle with a long lower shadow, reflecting selling pressure at higher levels despite some intraday recovery. The index continues to exhibit a broader bearish trend, trading below its key short-, medium-, and long-term moving averages, while the downward-sloping trend structure indicates persistent weakness.

The recent recovery from lower levels appears to be a counter-trend rebound rather than a confirmed trend reversal, particularly as the index failed to sustain its early gains. The relative strength index (RSI) stands at 46.27, remaining below the neutral 50 mark, suggesting momentum has improved from oversold conditions but lacks convincing bullish strength. Meanwhile, the MACD has registered a bullish crossover, with a positive histogram indicating improving short-term momentum.

Nifty 50 exhibits a bearish bias, although its ability to sustain above the 21-DMA provides some near-term stability. Technically, 22,700–22,600 remains a crucial support area, and a decisive breakdown below this range could intensify selling pressure, potentially extending the decline towards 22,200–22,000. On the upside, 23,000–23,200 is expected to act as key resistance, after the recent breakdown.

Nifty Bank opened on a positive note after the Dussehra holiday, helped by firm global cues. Profit booking set in after it tested the intraday high, and the index closed lower for the second straight session. The index opened at 55,707.85, touched a high of 55,867.45, a low of 54,696.45, and closed at 54,976.90, down 511.20 points (-0.92%). It formed a long bearish candle and slipped below the 21-SMA, though the lower shadow shows some buying near 54,700.

Among heavyweights, ICICI Bank (+0.29%) was the only gainer, while Union Bank (+0.72%), and PNB (+0.49%) also ended higher. Axis Bank (-2.10%), SBIN (-1.10%), and Kotak Bank (-1.02%) were the biggest losers, and Yes Bank (-2.78%) was the weakest stock in the index. The RSI is at 43.51 after turning lower from near 52 and slipping back below the 50 midline, indicates momentum moving in favor of the bears.

It is still slightly above its signal average of 42.83, so the downturn is not yet decisive. The MACD line at -258.91 stays above the signal line at -378.44, so the earlier bullish crossover is intact. But both lines are below zero, and the histogram (+119.54) has started to flatten, which means upward momentum is fading. The index trades below its 21-, 50-, 100-, and 200-SMAs, and the 50-SMA has slipped below both the 100- and 200-SMAs.

That confirms a weak medium-term trend, so rallies are likely to meet selling. On the downside, immediate support is at 54,700 (the day's low), followed by 54,000–53,900 (the early-October swing low). A break below this zone could take the index toward 53,500. On the upside, 55,265 (the 21-SMA) is the first hurdle, followed by selling pressure in 55,800–56,000. 56,380–56,890, where the 50-, 100-, and 200-SMAs sit close together, remains a major barrier.

Axis Bank's Q2 earnings miss is still weighing on private lenders, foreign investors keep selling, and India VIX is higher, so the bias stays cautious. We expect a range-bound to mildly negative trade, and only a sustained close above 56,000 would bring back bullish momentum. 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.

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