Stocks to buy | Sumeet Bagadia's stock recommendations: The key benchmark indices of the Indian stock market staged a strong rebound on Friday, October 9, bringing an end to the Nifty 50 and Sensex’s eight-week losing streak. The Nifty rose 1.30%, while the Sensex advanced 1.23%. Bank Nifty also recovered, gaining 1.36%. The rally was led by IT stocks following Tata Consultancy Services’ September-quarter results, with buying extending to FMCG, auto and financial shares.
The macroeconomic backdrop remains challenging. Brent crude continued to trade above $100 a barrel, while WTI remained above $90. Comments from the US president on discussions with Iran offered some temporary relief, but tensions around the Strait of Hormuz and concerns over regional energy infrastructure have kept the risk of supply disruptions elevated. For India, persistently high oil prices pose risks to inflation, the import bill and the rupee.
Sumeet Bagadia, Executive Director at Choice Broking, believes the Nifty 50 chart pattern is signalling improving short-term sentiment, although the broader structure remains weak below key moving averages. He said that PCR at 0.98 suggests a balanced derivatives setup, while India VIX eased to 14.375, reflecting reduced volatility. Sustaining the rebound and moving above resistance will be crucial for further improvement.
On the outlook for the Nifty 50 index, Sumeet Bagadia said, “Immediate support for the Nifty 50 index is placed at 22,250–22,400, while 22,650–22,700 remains the key resistance zone. RSI improved to 36.50 against its average of 31.48, indicating a gradual recovery from oversold territory.”
On the outlook for the Bank Nifty index, Bagadia said, “Immediate support is seen at 54,800–55,000, while 55,500–55,800 is the next resistance zone. RSI rose to 45.20 against its average of 38.02, signalling improving momentum.”