Raja Venkatraman recommends three stocks for 27 October

Market trends remain highly uncertain, with sharp swings on either side leaving participants confused about the market's true direction. The only consolation as we head into the final day of the expiry is that sentiment has been severely disrupted, and any meaningful recovery in confidence is likely to take time.

On October 26, 2026, Indian equity markets staged a strong recovery after a weak start, with benchmark indices reversing early losses to close firmly in the green. The Nifty 50 gained 153.20 points or 0.68% to settle at 22,753.20, while the Sensex advanced 482.92 points or 0.66% to close at 73,606.75.

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

SAILIFE (Cmp 1445.30)

SAILIFE: Buy above ₹1450, stop ₹1380 target ₹1575 (Multiday)

• Why it’s recommended:Sai Life Sciences Limited is an integrated contract research, development, and manufacturing organization (CRDMO) in Hyderabad, Telangana, India. The decline seen since September 2026 the stock has corrected sharply and is now witnessing a revival from deep oversold levels. The strong surge in volumes coupled with the Tenkan Sen to generate some upward momentum. With the revival in play with volumes was seen on Monday it could help the prices scale higher. 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 : 86.62,
  • 52-week high: ₹1697
  • Volume: 280.14K
• Technical analysis: Support at ₹1350, resistance at ₹1700.
• Risk factors: Client Dependency,Strict Quality Audits and Working Capital and Receivables.
• Buy : above ₹1450.
• Stop loss: ₹1380.
• Target price: ₹1575 (2 Months)

ACE (Cmp 1011.30)

ACE: Buy above ₹1020, stop ₹978 target ₹1135 (Multiday)

• Why it’s recommended:⁠Action Construction Equipment Ltd. (ACE) is India's leading material handling and construction equipment manufacturing company. In 2026 the stock has recovered well from the lower levels , however the last few weeks have been spent in consolidation and the recent revival indicates some fresh momentum. Strong domestic demand and higher gas prices have shifted focus on organised players. As the prices have given a strong closing with a long body candle, we can now look for some positive vibes to extend.
• Key metrics:
  • P/E: 26.94,
  • 52-week high: ₹1267.05,
  • Volume: 250.66K.
• Technical analysis: Support at ₹950, resistance at ₹1350.
• Risk factors: Raw material and natural gas price volatility, real estate sector cyclicality, and intense market competition.
• Buy : above ₹1020.
• Stop loss: ₹978.
• Target price: ₹1135 (2 Months)

LT (Cmp 3680)

LT: Buy above ₹3700, stop ₹3575 target ₹4010 (Multiday)

• Why it’s recommended: Larsen & Toubro Ltd (L&T) is a premier Indian multinational conglomerate spearheading Indian infrastructure development, executing landmark projects such as nuclear power plants, space launch pads for ISRO, bullet train corridors, and cross-sea bridges. After forming a double top in June, the last few months have been spent in a consolidating phase forming a lower top since listing the stock saw some firm upmove in June 2026. In the recent decline we can see the selling pressure dragging the prices lower. However, a positive divergence with a hammer formation body candle to end the previous trading is now a good indication to go long. Go long.
• Key metrics:
  • P/E Ratio : 69.71,
  • 52-week high: ₹4440,
  • Volume: 1.32M
• Technical analysis: Support at ₹3550, resistance at ₹4100.
• Risk factors: Project Complexity & Scale and Geological & Supply Chain Challenges.
• Buy : above ₹3700.
• Stop loss: ₹3575.
• Target price: ₹4010 (2 Months)

Stock market recap

The session began on a cautious note amid elevated crude oil prices, geopolitical tensions, and uncertainty surrounding global central bank policies. However, value buying at lower levels and improved sentiment in select sectors helped markets rebound sharply from intraday lows.

Sectorally, metals and pharmaceuticals emerged as the key drivers of the recovery, with the Nifty Metal and Pharma indices gaining nearly 2% each. Healthcare stocks also witnessed strong buying interest, while media and consumer durable stocks underperformed. Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 1.19% and the Nifty Smallcap 100 gaining 1.38%, indicating renewed participation beyond frontline stocks.

Among individual stocks, Dr. Reddy’s Laboratories surged over 6 percent following strong quarterly results, while JSW Steel and Adani Ports were among the top gainers. On the downside, Shriram Finance, Tata Consumer Products, Bajaj Finance, and HDFC Life faced selling pressure after earnings-related concerns.

Outlook for trading

Trends remain tense as we have been highlighting on a continuous basis in the previous articles as well. The lack of clarity that we are observing now is bound to cause some confusion. Currently the market has traded higher on Monday, it is now expected that we would now speed up in the rally. But those expectations came to naught as the pries pulled back forming higher lows across day. The trading, for most part, was quite active as intraday moves too were quite stilted. As a result, we had some boring times in the market. This remains the case at the end of the current week as well as the market churns around the same zone while attempting to move higher. But those efforts are still quite listless.

Technically, Nifty reclaimed its 20-day moving average and closed near the day's high, signaling improving short-term momentum. We have been highlighting the 22,300–22,400 zone as a crucial support area, while 22,800–23,000 remains an important resistance band. Despite the recovery, elevated crude prices, geopolitical uncertainty, and global central bank decisions continue to warrant caution. Overall, the session reflected resilient buying interest, with investors selectively accumulating quality stocks after recent corrections.

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.