Raja Venkatraman recommends two stocks for 12 October

Stock market recap: Indian equities navigated a volatile week from 5 to 9 October, marked by alternating bouts of selling pressure and sharp recoveries. On 9 October, benchmarks staged a broad recovery, reversing most of Thursday’s losses. Short-covering in banking and IT stocks drove the advance, with Sensex climbing 806 points (1.13%) to 72,399.32 and Nifty surging 261 points (1.18%) to 22,493.15.

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

FEDERALBNK (Cmp 330)

• Why it’s recommended: Federal Bank Limited (FEDERALBNK) is a major Indian private sector commercial bank blending extensive technological adoption with physical customer service. Since August the stock is on a declining mode and after correcting by nearly 10% the stock has reached some important support region around 320. The revival seen from lower levels has been encouraging. A strong thrust always attract some buying interest and support from Relative Strength Index(RSI) could help the prices rebound. Go long.
• Key metrics:
  • P/E Ratio : 18.30,
  • 52-week high: ₹364.95
  • Volume: 5.25M
• Technical analysis: Support at ₹310, resistance at ₹375.
• Risk factors: High short-term volatility in the share price, international LPG and crude price fluctuations, and potential regulatory or import duty changes.
• Buy: above ₹331.
• Stop loss: ₹315.
• Target price: ₹365 (2 Months)

CPPLUS (Cmp 4185.20)

• Why it’s recommended: CP PLUS is India's leading video security and surveillance brand owned and operated by Aditya Infotech Limited. There has been steady rounding pattern formation at the Kumo clouds and facing resistance on every rise. This counter has been in a steady downtrend. The recent decline seen in this counter into the Kumo cloud has found some strong demand to the downside. With the Relative Strength Index (RSI) not giving up we can expect the upward drive to continue.
• Key metrics:
  • P/E Ratio: 113.96,
  • 52-week high: ₹4188.50,
  • Volume: 887.68K.
• Technical analysis: Support at ₹800, resistance at ₹915.
• Risk factors: Supplier Concentration and Import Dependency.
• Buy: above ₹4190
• Stop loss: ₹3980
• Target price: ₹4510 (2 Months)

ABDL (Cmp 711.55)

• Why it’s recommended: Allied Blenders & Distillers Ltd. (ABDL) is one of India's leading alcoholic beverage and spirits companies. There has been steady rounding pattern formation at the Kumo clouds and facing resistance on every rise. This counter has been in a steady downtrend. Post the recent decline seen in this counter into the Kumo cloud has found some strong demand to the downside. With the Relative Strength Index (RSI) not giving up, we can expect the upward drive to continue.
• Key metrics:
  • P/E Ratio : 71.86,
  • 52-week low: ₹658,
  • Volume: 1.08M.
• Technical analysis: Support at ₹800, resistance at ₹915.
• Risk factors: State-Controlled Pricing & Taxation and input cost pressure.
• Buy : above ₹715
• Stop loss: ₹675
• Target price: ₹785 (2 Months)

Stock Market Recap

Indian equities navigated a volatile week from 5 to 9 October 2026, marked by alternating bouts of selling pressure and sharp recoveries. The Nifty 50 and Sensex struggled early in the week, extending their losing streak as global headwinds, persistent FII outflows, and weakness in metals and pharma weighed on sentiment.

Broader markets showed resilience, with midcaps and smallcaps outperforming, though market breadth remained weak, with more than 100 stocks hitting fresh 52-week lows.

Sectoral trends were mixed. Banking and media stocks provided support, while metals, pharma, and consumer durables dragged. IT stocks also faced pressure midweek, but selective strength emerged among counters such as Wipro and Tech Mahindra. Stock-specific action was vibrant: Arisinfra Solutions, Transrail Lighting, Power Mech Projects, and KSB rallied on fresh orders, while Ganesh Benzoplast and KPI Green Energy slipped despite corporate developments. The rupee offered some relief, strengthening modestly against the dollar.

The turning point came on Friday, 9 October, when benchmarks staged a broad recovery by midday, reversing most of Thursday’s losses. Short-covering in banking and IT stocks drove the advance, with Sensex climbing 806 points (1.13%) to 72,399.32 and Nifty surging 261 points (1.18%) to 22,493.15. The breadth of recovery was evident, with the Nifty’s advance-decline ratio at 46:4 and over 2,100 stocks advancing on the BSE. ITC led the rally, rising 4.33%, while TCS jumped 3.71% after reporting a strong quarterly profit and crossing $3.1 billion in AI-related revenue. Eicher Motors, Apollo Hospitals, and Adani Ports also posted notable gains.

Outlook for Trading

Despite a roller coaster week, we did see some positive vibes emerge by the week close to revive the flagging sentiment. Positive thrust seen across the week helped the markets stabilize and head higher. Volatility seems to be the order of the day as sentiment continues to waver despite the consistent effort to move above 22800 to revive bullish sentiment.

Markets continue to move in a consolidation mode as global cues have gone into slumber. Currently, we need to see how the market will be able to absorb this volatility and generate some momentum. Indices are at a crossroads, hence stock-specific action seems to be keeping the participants busy.

Rally attempts continue to dissipate some spirit as the market tries to carve out a bullish possibility. The next series began with a positive frame of mind, but the trends are still circumspect and show limited market participation. Nifty now seeks to contest the 23100 mark while Bank Nifty aims to hold above 56000 to clear the air of uncertainty. Volatility is now part of the ever-changing market scenario as the sentiment keeps changing. Risk management is critical, as the lack of clarity is greater than ever. Positive thrust seen across the week helped the markets stabilize and head higher.

Higher-timeframe charts shown above clearly indicate that the indices are trying to hold backbearish intentions. The Bank Nifty also did likewise with a dip into support, and there, too, we find that the selling seems to have eased off. Still, this index has to move above the 56000 levels for the bulls to be back in the game.

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.