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Indian Stocks Bounce Back Despite Global Weakness: What’s Next for Nifty?
The Indian stock market benchmark Nifty 50 displayed impressive resilience on Friday, October 10, climbing 0.40% to touch an intraday high of 25,285, despite facing weak global cues. This followed a modest 0.54% gain in the previous session, underscoring a steady upward trend bolstered by robust domestic banking stocks.
Banking Giants Lead the Charge as Nifty Bank Index Gains
The banking sector remained the primary catalyst behind the benchmark’s gains, with heavyweights such as State Bank of India (SBI), HDFC Bank, and Axis Bank pushing the index higher. The Nifty Bank index itself surged over 0.5% during the session, signaling renewed investor confidence in India’s financial institutions.
Market experts remain optimistic about the near-term outlook, forecasting further upside momentum. According to Ajit Mishra, SVP of Research at Religare Broking, “After three days of consolidation, indications now suggest potential trend resumption. A decisive breakout above 25,200 would confirm the move, with upside targets seen at 25,400 and 25,650 levels.”
However, Mishra also cautioned traders about downside risks, stating, “A break below 24,950 may derail the positive tone and extend the consolidation phase. Traders should focus on identifying sectoral outperformers and use intermediate dips to accumulate quality names.”
Ajit Mishra’s Top Stock Picks for the Next Fortnight
In line with his bullish market view, Mishra highlighted three promising stocks that demonstrate strong technical setups and sectoral support—offering attractive short-term trading opportunities.
NMDC: Strong Breakout Signals Sustained Upward Momentum
NMDC has been steadily climbing, buoyed by rising trading volumes, signaling growing investor interest. Mishra points out that the stock has exited its corrective phase with a decisive breakout above a falling trendline.
Furthermore, NMDC has surpassed a critical resistance zone, completing a classic cup-and-handle formation breakout, a bullish technical pattern that often precedes further gains.
“After consolidating within a narrow range to digest recent gains, NMDC has now broken out with renewed volume support. Considering the constructive price action and positive sector outlook, the ongoing upward momentum is likely to sustain,” Mishra said.
Target Price: ₹87
Stop Loss: ₹75
Punjab National Bank (PNB): PSU Banking Stock Eyes a Breakout
As the public sector banking segment regains momentum, Punjab National Bank (PNB), which had remained relatively quiet, is now attracting fresh buying interest. Mishra notes that PNB is consolidating within a broader range above its long-term 200-day Exponential Moving Average (EMA), trading near the range’s upper boundary.
A move above this level could confirm a breakout from an inverted head and shoulders pattern, suggesting a potential resurgence in upward momentum.
“Traders may consider initiating long positions within this range, given the positive technical cues and improving fundamentals,” Mishra added.
Target Price: ₹125
Stop Loss: ₹109
Aurobindo Pharma: Reversal in Sight Amid Sector Weakness
While the pharmaceutical sector has generally underperformed, Aurobindo Pharma is showing early signs of stabilization and recovery. The stock recently made a strong breakout above its falling trendline, marking the end of its corrective phase.
Having reclaimed its short- to medium-term moving averages, Aurobindo Pharma now appears set to challenge its long-term 200 EMA, a critical technical hurdle.
“The successful retest and rebound from the trendline further validate the start of a fresh upward leg. Given the favorable technical setup and strong volume support, traders may look to build fresh long positions at the specified levels,” Mishra advised.
Target Price: ₹1,250
Stop Loss: ₹1,060
Despite the bullish technical signals and sectoral strength, investors and traders should remain vigilant. Market momentum may be vulnerable to short-term volatility triggered by rapid spikes in Open Interest or sudden price corrections.
However, the consensus among experts is cautiously optimistic. The Nifty 50 is positioned for further gains, provided it decisively breaks above key resistance levels and sustains buying interest.
India’s stock market continues to demonstrate resilience even amid global uncertainties. With select banking heavyweights driving the rally and promising stock picks emerging in key sectors like mining, banking, and pharmaceuticals, the market looks set for an interesting phase ahead.
Traders should watch for critical breakout levels in the benchmark index and leverage sector-specific opportunities to maximize gains while managing downside risks prudently.
