Stocks to buy: What’s the outlook for Nifty for Diwali week starting October 20? Check list of top stock recommendations
Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, the top stock picks for the upcoming week are Mahindra & Mahindra (M&M), and Godrej Properties. Here’s his view on Nifty, Bank Nifty for the Diwali week starting October 20, 2025:
Diwali week: Nifty View
The festive cheer seems to have arrived early on Dalal Street. The benchmark index marked a recent low of 24587 on September 30, 2025, and since then, has staged a remarkable recovery—rallying nearly 1200 points, or close to 5%, in just 13 trading sessions. On Friday, it has given the highest closing since October 2024, reflecting renewed optimism and strong buying interest across sectors.A key contributor to this rally has been the Bank Nifty, which surged to a fresh all-time high on Friday. From its recent low of 54226, the banking index has gained over 3600 points, underscoring the strength in financials and the leadership role they’ve played in this uptrend.Technically, the index has broken out of a Symmetrical Triangle pattern on the daily chart this week—a bullish continuation signal. All major moving averages are aligned positively, and momentum indicators are confirming the strength of the trend. The daily RSI remains in bullish territory and continues to rise, indicating sustained momentum.Given the current chart structure and technical setup, the index appears poised to extend its northward journey in the short term. As per the measure rule of the Symmetrical Triangle pattern, the medium-term upside target is placed at 26730. On the downside, the support zone of 25400–25350 will be crucial to watch, acting as a buffer against any short-term volatility.
Bank Nifty View
The banking benchmark index Bank Nifty has been consistently outperforming the frontline indices over the past couple of weeks. Most notably, it registered a fresh all-time high in the previous week, underscoring the strength and leadership of the banking space. In contrast, the Nifty index remains 2.15% below its own all-time high, highlighting the relative strength of Bank Nifty.With the index trading at record levels, technical indicators continue to signal strong bullish momentum. The daily ADX, a trend strength indicator, is quoting at 27.70 and rising—suggesting a robust and strengthening trend. Given this setup, we believe Bank Nifty is likely to extend its northward journey over the next few trading sessions. While a brief consolidation phase of 2–3 sessions cannot be ruled out, the broader trend remains firmly positive.In terms of key levels, the support zone of 57100–57000 will be crucial. As long as the index trades above 57000, it remains well-positioned to test 58500, followed by 59000 in the short term.
Stock recommendations:
Mahindra & Mahindra (M&M)Mahindra & Mahindra had been consolidating within the 3390–3525 zone since early October. The stock broke out of this range yesterday on the back of rising volumes, confirming strong buying interest. Throughout the consolidation phase, it consistently held above the midline of the Bollinger Bands, which acted as a reliable support zone. The RSI has now moved above 60 and is trending higher, indicating strengthening bullish momentum. Additionally, the MACD’s bullish crossover above the signal line and the DI+ crossing over DI– further reinforce the positive setup, suggesting that the stock may be poised for continued upside in the near term. Hence, we recommend to accumulate the stock in the zone of 3647-3640 with a stoploss of 3530. On the upside, it is likely to test the level of 3900 in the short term.Godrej PropertiesGodrej Properties has displayed strong momentum, closing above the upper Bollinger Band for two consecutive sessions, which indicates aggressive buying and strong bullish sentiment. Such price action often reflects sustained upward pressure, though mild consolidation may follow after sharp gains. The stock had earlier consolidated between the 2040–2105 zone before breaking out and surging sharply over the past three trading sessions. The DI lines in the ADX indicator are widening, signaling strengthening trend momentum. The MACD remains above the zero line with expanding green histogram bars, confirming bullish strength. Meanwhile, the RSI is rising and settled at 67.88, still below the overbought zone, suggesting scope for further upside in the near term. Hence, we recommend to accumulate the stock in the zone of 2236-2230 with a stoploss of 2165. On the upside, it is likely to test the level of 2400 in the short term.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
