Stock recommendations for 28 October from MarketSmith India
MarketSmith India reveals its top stock recommendations for today, 28 October. Get expert insights into the best-performing stocks to guide your investment decisions.
The Indian equity market staged a robust recovery on Monday. The benchmark indices erased Friday’s losses to close higher, primarily driven by strong global cues.
The Nifty 50 closed at 25,973.60, while the Sensex ended at 84,802.17, both up around 0.70%. Market sentiment was buoyed by optimism stemming from softer-than-expected US inflation data, which strengthened the case for future Federal Reserve rate cuts, and positive developments in US-China trade talks.
On the sector front, the banking index (Nifty Bank) was a major contributor, along with strong gains in select Cables and Engineering Services stocks. Conversely, the Energy sector faced significant selling pressure. Stock-specific news was prominent, with Reliance Industries in focus over major AI infrastructure investment plans, and ICICI Bank drawing interest following strong quarterly earnings.
Two stock recommendations by MarketSmith India:
Buy: Bharti Hexacom (current price: ₹1,868)
- Why it’s recommended: Strong parentage and backing from Bharti Airtel, expanding 4G/5G network footprint in key northern circles, consistent revenue and subscriber growth, healthy Ebitda margins and improving ARPU, beneficiary of increasing data consumption and digital penetration
- Key metrics: P/E: 62.21, 52-week high: ₹2,052.90, volume: ₹111.14 crore
- Technical analysis: Reclaimed the 50-DMA on above average volume
- Risk factors: High competition in the telecom sector, especially from Jio and Vodafone Idea, regulatory and spectrum-related uncertainties, rising capex requirements for 5G rollout, margin pressure from tariff wars or subscriber churn, dependency on limited geographic circles for revenue concentration, potential policy or AGR-related liabilities
- Buy: ₹ 1,850–1,880
- Target price: ₹2,140 in two to three months
- Stop loss: ₹1,750
Buy: Premier Energies Limited (current price: ₹1,100)
- Why it’s recommended: Strong secular demand for solar manufacturing & renewables, Integrated manufacturing, capacity expansion & backward integration
- Key metrics: 46.35: N/A; 52-week high: ₹1,384; volume: ₹572.72 crore
- Technical analysis: trendline breakout retest
- Risk factors: Customer/product/geographical concentration, export/trade/regulation risk
- Buy at: ₹1,080–1,110
- Target price: ₹1,230 in two to three months
- Stop loss: ₹1,040
Nifty 50 recap
Indian equities extended their upward momentum yesterday, with benchmark indices closing higher amid positive global cues and strong buying in select heavyweights. The Nifty 50 gained 170.9 points (+0.66%) to close at 25,973.60, while the Sensex advanced in tandem, supported by strength in banking, auto, and energy stocks.
The broader market showed mildly positive breadth, with 1,637 stocks advancing against 1,504 declines, indicating moderate participation. On the sector front, PSU banks (+2.2%), oil & gas (+1.5%), realty (+1.5%), and auto (+0.6%) led the gains, while pharma and media indices edged lower. Within key movers, public sector lenders and energy majors outperformed on value buying and firm crude prices.
The Nifty 50 price action remained firmly above the recent breakout zone near 25,500–25,600. The index continues to trade above all key moving averages.
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 high.
The recent breakout from a long-term descending trendline, drawn from previous highs, signals a potential shift toward a higher trading range. Momentum indicators remain supportive: the RSI stands at 71.5, indicating strong positive momentum, though entering the overbought zone, suggesting the possibility of short-term consolidation. The MACD line remains above the signal line and continues to widen positively, affirming sustained buying strength.
Following a brief phase of profit booking, the index successfully closed above the previous day’s high of 25,944, reaffirming its positive momentum and shifting the daily bias back to the upside. The overall structure will likely remain bullish as long as the index sustains above 25,400, a key breakout zone aligned with the downward-sloping trendline.
On the technical front, Nifty now faces a critical resistance zone between 26,000 and 26,300. A decisive breakout above this range could pave the way toward new all-time highs. On the downside, immediate support is placed at 25,400, while a stronger demand base near the 25,000 mark continues to underpin the broader uptrend.
Overall sentiment remained constructive ahead of major global central bank commentary and domestic macro data next week, with traders watching for sustained momentum above the 26,000 mark to confirm bullish continuation.
How did the Nifty Bank Perform?
The Bank Nifty opened on a positive note and continued its upward trajectory, maintaining strong momentum throughout the session. The index settled at 58,114.25, after marking an intraday high of 58,224.55 and a low of 57,652.75, gaining 0.72% for the day. The steady rise reflects persistent bullish sentiment, supported by robust buying in banking heavyweights. The index remains well above its key moving averages, indicating a healthy uptrend and strong underlying momentum across short- to medium-term time frames.
The momentum indicator RSI currently stands at 72.11, entering the overbought zone, which suggests a potential for mild profit-booking or short-term consolidation after a strong rally. However, sustaining above 65 continues to signal underlying strength in momentum. The MACD remains in positive territory, with the MACD line above the signal line, confirming continued bullish momentum. Although the histogram shows a narrowing slope, indicating a slowdown in acceleration, the setup remains favourable as long as the MACD maintains its positive crossover.
Overall, the trend in Bank Nifty remains firmly constructive, with the index sustaining above key short-term support levels. Immediate support lies near 57,500, followed by a stronger base around 56,000, coinciding with the 21- and 50-DMA. On the upside, a sustained move above 58,550 could trigger the next leg of the rally, paving the way toward the 60,000 mark in the coming sessions. While short-term consolidation cannot be ruled out, the broader outlook remains bullish, with dips expected to attract fresh buying interest from positional traders and institutional participants.
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.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
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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