Indian equities ended lower on 8 October, snapping a four-day winning streak as profit booking and mixed global cues weighed on sentiment ahead of the September-quarter results season. After a positive start that briefly took the Nifty near the 25,200 mark, mid-session volatility erased gains, leading to a muted close.
The Sensex declined 153 points, or 0.19%, to settle at 81,773.66, while the Nifty 50 slipped 62 points, or 0.25%, to end at 25,046.15. Broader markets underperformed, with the BSE Midcap and Smallcap indices falling 0.74% and 0.42%, respectively. Sectoral trends were mixed — IT and consumer durables outperformed on gains in Infosys, TCS, and Titan, while realty, telecom, pharma, media, energy, and auto stocks came under pressure, shedding up to 2%.
Why it’s recommended: Wheels India Ltd, an Indian automotive parts manufacturer founded in 1960, is part of the TVS Group. Based in Chennai, it is a leading global producer of steel, aluminium, and wire wheels for various vehicles and industrial equipment. As hesitant upward traction is beginning to give way, the possibility of prices reaching new highs is looking more positive. With strong momentum in place, further upward traction is possible.
Risk factors: Supply chain disruptions, fluctuating raw material prices, customer absorption of costs, economic downturns, and changes in government policies.
Why it’s recommended: Star Cement is India’s largest cement manufacturer in North-East India, with a significant market presence in West Bengal and Bihar, offering products such as Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC). After a strong decline, the prices are seen forming a long-body candle at the cloud support region, igniting some bullish enthusiasm. A positive outlook has emerged as prices demonstrate a strong upward trend. Can look to go long.
Risk factors: High geographical concentration in the North-East and vulnerability to volatile input prices.
Why it’s recommended: Fusion Finance Ltd is an Indian NBFC-MFI (non-banking financial company-micro finance institution) that provides microloans to women entrepreneurs in rural and semi-urban areas using the joint liability group (JLG) model. Despite some profit booking seen the prices have managed to hold on for a while at the TS line. The formation of a green candle is seen emerging from the TS zone, indicating a strong push to the upside. Over the last few days, we have been witnessing the formation of a long-body candle, and the RSI has been holding at 60. We can look at initiating a long.
Risk factors: Prolonged deterioration in asset quality, exposure to borrowers with weak credit profiles, financial covenant breaches with lenders, and inherent vulnerabilities.
Why it’s recommended: Leadership position in graphite electrode manufacturing, global recovery in steel production, export opportunities and diversified client base, and focus on R&D and product quality improvement.
Risk factors: Volatility in graphite electrode prices and raw material, environmental regulations and carbon emission norms, and margin pressure due to the cyclical nature of the business
Why it’s recommended: Diversified financial services franchise & strong brand, strategic shift toward fee-based, and capital-light model
Why it’s recommended: IIFL Finance is displaying renewed strength after a period of consolidation, with price action supported by improving momentum indicators. The daily RSI at 63.8 reflects bullish sentiment and steady upward bias. The MACD at +3.6 confirms a positive crossover, reinforcing trend continuation, while the ADX at 37.2 indicates that the trend is strengthening steadily. The stock has reclaimed key moving averages and is positioned for a potential breakout above the ₹500 level.
Risk factors: Sensitive to changes in interest rate outlook and NBFC liquidity conditions.
Broader financial sector volatility could influence short-term price action.
Why it’s recommended: Fortis Healthcare continues to exhibit strong price behaviour with momentum firmly on the upside. The RSI at 68.4 signals healthy bullish strength, while the MACD at +12.7 supports a positive bias with continued upward momentum. The ADX at 31.5 indicates an ongoing strengthening trend, suggesting follow-through buying could push prices higher. The stock has maintained its upward channel and looks poised for a breakout toward the ₹1,095 zone.
Key metrics: RSI (14-day): 68.4 — bullish and strengthening
MACD (12,26): +12.7 — positive alignment, confirming trend continuation
Risk factors: Healthcare policy changes and pricing regulations may impact margins.
Defensive sector rotation could limit near-term outperformance.
Why it’s recommended: BPCL is showing renewed buying interest after consolidating near support levels. The RSI at 60.9 indicates stable bullish momentum, while the MACD at +2.1 confirms trend continuation with a positive bias. The ADX at 39.4 reflects strong underlying trend strength, suggesting room for further upside. The stock’s technical setup points to a possible continuation move toward ₹356, with solid sectoral support from energy and refining plays.
Policy changes in fuel pricing and subsidy structures can impact performance.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil IndiaPvt. Ltd. Sebi Registration No.: INH000015543
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
