Raja Venkatraman recommends three stocks for 16 October

Finally, some help from overseas stepped in to arrest the decline. A challenging scenario emerges ahead of us as we try to balance this delicate situation to ensure that we are able to take the recovery and move ahead swiftly. Important zones have been reached , we now need to sustain.

On 15 October, 2026, Indian equities staged a sharp rebound in morning trade, with benchmarks surging over 1% each while mid- and small-cap indices lagged. The Sensex jumped nearly 1,400 points to an intraday high of 74,144, and the Nifty 50 climbed close to 400 points to touch 23,001.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

HCLTECH (Cmp 1360)

HCLTECH: Buy above ₹1365, stop ₹1290 target ₹1495 (Multiday)

• Why it’s recommended:HCLTECHis a leading Indian multinational information technology (IT) services and consulting company. Since July 2026 the stock has been in a revival mode. Lately with the IT sector reporting some stable Q2 numbers the prices are seen taking a cue from the numbers. The IT sector as a whole is in a state of rebound. Despite a disappointing Q2 numbers the AI reversal trade is helping the prices rebound. As value support region is indicating some strong push, we can see the upmove emerge. There is strong buying interest developing and support from Relative Strength Index(RSI) could help the prices rebound. Go long.
• Key metrics:
  • P/E Ratio : 27.59,
  • 52-week high: ₹1770
  • Volume: 8M
• Technical analysis: Support at ₹1180, resistance at ₹1550.
• Risk factors: Geographic Concentration,AI Productivity Deflation and Wage Inflation & Talent Premium.
• Buy : above ₹1365.
• Stop loss: ₹1290.
• Target price: ₹1495 (2 Months)

ANANDRATHI (Cmp 2142.60)

ANANDRATHI: Buy above ₹2150, stop ₹2060 target ₹2350 (Multiday)

• Why it’s recommended:Anand Rathi Group is a prominent Indian full-service financial and wealth management firm. There has been a long period of consolidation and post the decline that emerged ahead of the numbers , the negative results have been priced in to rebound from the Kumo cloud region. The steady revival seen is also attracting volumes with the support from the bands strong demand could emerge to the head higher once again. As the Relative Strength Index (RSI) also not giving up we can expect the upward drive to continue.
• Key metrics:
  • P/E Ratio : 78.43,
  • 52-week high: ₹2267,
  • Volume: 37.46M.
• Technical analysis: Support at ₹2000, resistance at ₹2400.
• Risk factors: Market and Price Volatility Risk,Concentration and Related-Party Risk and Credit and Default Risk.
• Buy : above ₹2150
• Stop loss: ₹2060
• Target price: ₹2350 (2 Months)

SUPREMEIND (Cmp 3616)

SUPREMEIND: Buy above ₹3620, stop ₹3490 target ₹3960 (Multiday)

• Why it’s recommended:The Supreme Industries Limited (SUPREMEIND) is India's largest plastic manufacturer and processor. The stock has been spending a lot of time consolidating and is now showing possibility of a revival. Currently the stock is showing been steady consolidation since last 6 months as accumulation is happening. However, as the markets are now showing some signs of revival the stock is also bottoming out making a double bottom. A small hint at a potential upmove that could unfold in the coming days. Look for initiating a buy.
• Key metrics:
  • P/E Ratio : 74.55,
  • 52-week high: ₹369.65,
  • Volume: 206.96K.
• Technical analysis: Support at ₹3300, resistance at ₹4000.
• Risk factors: State-Controlled Pricing & Taxation and input cost pressure.
• Buy : above ₹3620
• Stop loss: ₹3490
• Target price: ₹3960 (2 Months)

Stock market recap

The rally was led by blue-chip stocks such as Bharti Airtel, ICICI Bank, HDFC Bank, Reliance, Infosys, and TCS, as investors shifted focus toward large-caps amid more comfortable valuations and relative safety compared with mid- and small-caps.

Global cues also played a role, with sharp declines in South Korea’s Kospi (-8%) and Taiwan’s Weighted Index (-4%) as the AI-driven rally in those markets showed signs of exhaustion. This reversal is seen as positive for India, as foreign investors may redirect flows into Indian equities, particularly IT, where earnings momentum is improving.

TCS and HCL Tech delivered better-than-expected Q2 results, fueling a 9% surge in the Nifty IT index over three sessions. Overall strong IT earnings and expectations of resilient financial results could underpin further strength, even as higher oil prices, elevated U.S. bond yields, and FII outflows continue to pose challenges. Overall, the session reflected renewed optimism, led by large-cap resilience and sectoral rotation.

Outlook for trading

Midway into the October series has been quite demanding as the large-scale volatility has left every trader wondering if more steam is left to the upside. Despite regular gaps that threatens the sentiment the hope of bullishness is seen holding. As highlighted earlier the last few days the markets have been in an alternating trends. The environment is still unstable hence markets have been chopping and turning thus not giving complete clarity yet. The situation continues to be a dicey one as we are still not out of the woods yet.

However, the bullish signature that are emerging is clearly playing in favor of the bullish camp. We are up by 700 points this week and now we are looking at the lack of interest in the Nifty Mid and Small cap space as an important stance which is taking some time. So, one is a bit wary of the improvement in breadth because their absence will drag the quest for a revival of Nifty levels ahead.

The strong rise seen this week yet again on a Sensex expiry did unsettle a lot of short market participants as the rise was exactly till the 61.8% resistance zone of the all seen since 15 September. Further, the Relative Strength Index is also seen rising till the RSI 50 levels and this could now mean that there has been a mean reversion as the overall trends are still having a bearish overhang.

Hence, it is very important for the momentum to sustain and once again move towards a new high. Despite the trends showing spurts of bullishness the challenge shall continue to remain to reach the summit in the coming week. We observed that the decline tested the support levels, and then ended the week rather strongly. Now, the sentiment is getting set for some positive bias. When the market rises, there are enough people to keep calling the top. However, we need to tread carefully.

We could now look at holding on to a dip buy opportunity and one should hold on to the bullish bias as the gap region now around 22800 could now be the revised support zone for the reaction that may emerge in the coming sessions. The last two sessions we are observing that the dips that emerge a buying interest on dip fuelled a strong surge. In coming sessions, we now have a clear zone defined for longs where Nifty would if exceeds 23100 which we have been mentioning , the next stop is at 23500 as the immediate resistance to breach.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

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 guarantees performance of the intermediary or provide any assurance of returns to investors.