Sensex and Nifty Indices Experience Significant Gains Ahead of Quarterly Earnings Reports

Last week, both the Sensex and Nifty indices experienced notable gains, with the Sensex climbing 1,451.37 points, or 1.76%, to finish at 83,952.19. Meanwhile, the Nifty increased by 1.68% to end at 25,709.85, marking the third consecutive week of growth for the equity markets. This week, market participants will focus on quarterly earnings from major companies like Reliance Industries, HDFC Bank, and ICICI Bank during the holiday-shortened week starting October 20.

On October 21, traders will pay close attention to the one-hour Diwali Special Muhurat Trading session, which signifies the beginning of Samvat 2082. This session is a significant event in the Indian stock market calendar.

Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, noted that the Nifty index has confirmed its breakout with strong buying momentum. This has sustained its three-week winning streak while maintaining a higher high-higher low pattern. "Persistent put writing at at-the-money strikes further underscores traders' confidence in the ongoing uptrend," he said.

Dhameja added that a move above the 25,800 resistance zone could trigger more buying interest and short-covering activity. This might push the index towards the 26,000 mark soon. Conversely, immediate support is seen at 25,500-25,400, where buying demand is likely to cushion any short-term dips.

The Bank Nifty index has reached a new all-time high, confirming a strong breakout with continued buying momentum. Dhameja commented that this index shows sustained strength with its third consecutive positive weekly close and a higher high-higher low price structure indicating an ongoing uptrend.

"A decisive move above the 58,000 resistance zone could trigger additional long buildup and short covering," Dhameja stated. This could potentially propel the index toward the 58,500 mark soon. Immediate support lies between 57,200-57,300.

On Choti Diwali, Riyank Arora from Mehta Equities Ltd recommended buying two stocks on Monday, October 20. TVS Motor is one of them. It remains in a strong uptrend with consistent higher highs and higher lows formation. The stock trades well above its key moving averages with strong delivery volumes.

Sustaining above ₹3,654 could lead to a rally toward ₹3,800 and ₹3,880 for TVS Motor. Momentum indicators remain positive. Traders should maintain a stop-loss at ₹3,560 to protect against short-term volatility.

Another recommendation is Godrej Properties. It has shown renewed buying interest near its support zone and trades above major moving averages. The price action indicates accumulation with RSI trending upward.

Sustaining above ₹2,236 may push Godrej Properties toward ₹2,350 and ₹2,420 in upcoming sessions. Traders may look to buy on dips while keeping ₹2,180 as a strict stop-loss to manage downside risk.

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