Market Recovery: Nifty and Sensex Indices Rise Following World Bank's GDP Growth Revision

For the second consecutive week, markets have shown signs of recovery. The Nifty and Sensex indices closed near their weekly peaks, reaching 25,285.35 and 82,500.82, respectively. This positive trend is attributed to improved investor sentiment following the World Bank's revision of India's FY26 GDP growth forecast from 6.3% to 6.5%, along with net buying by Foreign Institutional Investors (FIIs) in the previous week.

Key domestic macroeconomic indicators are set to be released this week, including September's retail inflation (CPI) and wholesale inflation (WPI) data on October 13 and 14. These figures will be crucial for market participants. Additionally, a busy schedule of Q2FY26 results is expected to influence sectoral performance significantly.

The Nifty index has formed a substantial bull candle on the weekly chart, indicating a continuation of its upward movement. It closed above the short-term moving average, retracing over 80% of its previous decline from 25,448 to 24,588. Analysts from Bajaj Broking suggest that the index will likely maintain a positive bias, potentially reaching 25,450 levels soon.

The Bank Nifty index also formed a significant bull candle, closing above Tuesday's high. This indicates a resumption of its upward trend after a brief pause. Analysts predict that the index will maintain a positive bias and could head towards its all-time high of 57,300-57,600 in the coming week.

On October 13, Mehta Equities Ltd.'s technical analyst Riyank Arora recommended two stocks for purchase. Adani Total Gas is suggested as a buy at ₹628 with a stop-loss at ₹610 and targets of ₹660 and ₹680. The stock shows signs of technical rebound with improving momentum indicators.

Anthem Bio is another recommended buy at ₹800 with a stop-loss at ₹765 and targets of ₹850 and ₹880. The stock has broken out of its consolidation phase with strong volume action and trades above its 20-day and 50-day moving averages.

Investors are advised to closely monitor the results of major companies like Axis Bank, ICICI Bank, HDFC Bank, Reliance Industries, Infosys, HCL Technologies, Wipro, Tech Mahindra, and LTIMindtree during this earnings season. These results are expected to have a significant impact on market dynamics.

Bajaj Broking analysts suggest using dips as buying opportunities for both Nifty and Bank Nifty indices. For Nifty, support is revised higher towards 25,000-24,900 levels. For Bank Nifty, support is placed at 55,500-55,000 levels.

"Nifty on the weekly chart has formed a sizable bull candle with a higher high and higher low signaling continuation of the up move," stated Bajaj Broking analysts. "We believe dips in the coming week should be used as a buying opportunity."

"Bank Nifty formed a sizable bull candle with a higher high and higher low," commented Bajaj Broking analysts. "We believe bias remains positive and dips should be used as a buying opportunity."

The views expressed are those of individual analysts or entities and do not reflect Goodreturns.in or Greynium Information Technologies Private Limited's views. They do not guarantee accuracy or provide investment advice.