Nifty ends its eight-week losing streak as technical indicators show tentative signs of improvement; ICICI Lombard and Nykaa emerge as stock picks for October 12–16, 2026
Stocks to buy today: Indian stock market investors are entering the trading week of October 12–16 with cautious optimism after the benchmark Nifty 50 ended its eight-week losing streak. Technical indicators suggest that the market may be attempting a recovery, although analysts warn that confirmation from subsequent trading sessions will be important before the recent improvement can be considered a sustained reversal.
Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, has identified ICICI Lombard General Insurance and Nykaa as stocks to watch during the week. Both companies have displayed technical signals that suggest the possibility of further gains, according to the analysis published by The Times of India on October 12, 2026.
The recommendations come as the Nifty attempts to stabilise near important technical support levels, while the Bank Nifty index has shown relative strength compared with other frontline indices. Nevertheless, both benchmark indices remain below crucial moving averages, and the broader market outlook continues to reflect uncertainty.
For ICICI Lombard, the recommended accumulation range is ₹1,670–₹1,690, with a stop-loss at ₹1,620 and a short-term upside target of ₹1,810. For Nykaa, the suggested accumulation range is ₹337–₹343, with a stop-loss at ₹328 and an upside target of ₹365.
These levels represent the analyst’s technical recommendations, not guaranteed outcomes. Investors should consider their financial circumstances, risk tolerance and independent research before making investment decisions.
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ICICI Lombard Share Price Outlook: Strong Recovery Supports Bullish Momentum
ICICI Lombard General Insurance has emerged as one of SBI Securities’ preferred stock picks for the week following a significant rebound from its September lows.
According to Shah’s technical assessment, the stock has recovered nearly 19% from the low of ₹1,423 recorded on September 15, 2026. The rebound coincided with a major support zone between ₹1,420 and ₹1,480, which had previously acted as an important technical area in June 2024.
Support zones are price ranges where buying interest has historically emerged, potentially limiting further declines. When a stock recovers from such a zone, technical analysts often examine whether the rebound is supported by improving momentum indicators and stronger buying activity.
In ICICI Lombard’s case, several indicators have reportedly strengthened alongside the recovery, suggesting that bullish momentum may be building.
RSI Signals Improving Buying Momentum
The Relative Strength Index (RSI), a momentum indicator used to assess the speed and magnitude of recent price movements, has rebounded sharply from 16 to 67, according to the report.
An RSI reading of 16 generally reflects exceptionally weak recent momentum and may indicate oversold conditions. A subsequent rise to 67 signals a substantial improvement in price momentum.
However, RSI readings should not be interpreted in isolation. Although a rising RSI can support a bullish technical view, it does not guarantee that a stock will continue to advance. Price action, trading volumes, broader market conditions and other indicators remain important considerations.
MACD and ADX Reinforce the Technical Outlook
The Moving Average Convergence Divergence (MACD) indicator has also provided a positive signal. According to the analysis, the MACD line crossed above the zero line, while green histogram bars increased.
The MACD is commonly used to assess changes in momentum by comparing moving averages. A move above the zero line can indicate that upward momentum is strengthening, although the reliability of the signal depends on the surrounding price trend.
The Average Directional Index (ADX), meanwhile, has begun rising gradually on the weekly timeframe. ADX measures trend strength rather than direction, so a rising reading generally indicates that a trend is becoming stronger.
The Directional Indicator lines also support the bullish interpretation. The positive directional indicator, or DI+, is positioned significantly above the negative directional indicator, or DI−. This configuration suggests that upward price movement has been stronger than downward movement over the period measured.
Taken together, these indicators form the basis of SBI Securities’ positive technical assessment of ICICI Lombard. Nevertheless, a continuation of the recovery will depend on whether the stock sustains buying interest and moves through relevant resistance levels.
ICICI Lombard: Entry Range, Stop-Loss and Target
SBI Securities has recommended accumulating ICICI Lombard General Insurance in the ₹1,670–₹1,690 range. The analysis places the stop-loss at ₹1,620, while the short-term upside target stands at ₹1,810.
The recommended levels are based on the stock’s technical structure and the momentum signals identified by the analyst. The stop-loss is intended to define a level at which the trade thesis may need to be reassessed if the share price moves against expectations.
The insurance sector’s broader performance, changes in investor sentiment and movements in the overall stock market could also influence the stock’s direction during the week.
Investors should remember that technical indicators are based on historical price and volume data. They cannot predict future returns with certainty, and actual execution prices may differ from the suggested levels.
Nykaa Share Price Outlook: Stock Consolidates Before Potential Breakout
FSN E-Commerce Ventures, the company that operates the Nykaa beauty and fashion platform, is the second stock identified by Shah for the October 12–16 trading week.
According to the report, Nykaa has been consolidating within a range of ₹316–₹350 since early July 2026. Consolidation occurs when a stock trades within a relatively defined price band rather than establishing a sustained upward or downward trend.
Such a phase can indicate that the market is reassessing a stock after an earlier price movement. A breakout occurs when the share price moves decisively beyond the established trading range, although not every attempt to cross a range results in a sustained trend.
Despite its recent consolidation, Nykaa continues to trade above key moving averages on both daily and weekly timeframes, according to the technical analysis. This is one of the factors supporting the analyst’s positive outlook.
Moving averages smooth out price fluctuations over a specified period and help traders assess the direction of a trend. When a stock remains above important moving averages, analysts may interpret it as evidence that the broader upward trend remains intact.
MACD Indicates Building Positive Momentum
Nykaa’s MACD line has crossed above the zero line, signalling an improvement in momentum, according to the report.
The indicator is used to assess the relationship between short-term and longer-term moving averages. A positive shift may suggest that buying pressure is strengthening, although confirmation from the share price is necessary before assuming that a breakout will follow.
The stock also recently tested its 20-week Exponential Moving Average (EMA), an indicator that gives greater weight to more recent prices. The report said the stock attracted buying interest around this level.
Additionally, the 34-day EMA has acted as a support area, with buyers defending the zone during the preceding two trading sessions.
The combination of support from moving averages and improving momentum has contributed to the positive technical assessment. The analyst views the recent profit-booking phase as a potential consolidation period following a sharp upward move.
However, profit booking can sometimes develop into a deeper correction. Whether Nykaa resumes its upward movement will depend on its ability to sustain buying interest and move beyond the upper boundary of its recent trading range.
Nykaa: Entry Range, Stop-Loss and Target
SBI Securities has recommended accumulating Nykaa in the ₹337–₹343 range, with a stop-loss at ₹328 and a short-term upside target of ₹365.
The proposed entry range lies within the stock’s reported consolidation band of ₹316–₹350. A sustained move above the upper end of that range could strengthen the breakout argument, although the analyst’s target should not be interpreted as a guaranteed price outcome.
The stock’s performance may also be influenced by developments in the beauty and fashion retail market, company-specific announcements, quarterly financial results and broader investor appetite for consumer-facing businesses.
Investors considering the recommendation should evaluate the company’s fundamentals alongside the technical indicators. Revenue growth, profitability, competition, valuation and operating performance can all affect the stock over periods longer than the immediate trading horizon.
Nifty Outlook: Benchmark Ends Eight-Week Losing Streak
The Nifty 50 ended its eight-week losing streak during the week preceding October 12, 2026, providing a tentative sign of stabilisation after an extended period of weakness.
According to Shah’s analysis, the benchmark index gained 0.44% for the week and formed a Doji candlestick pattern.
A Doji forms when the opening and closing prices are relatively close to each other. It can indicate indecision between buyers and sellers, particularly after a prolonged move in one direction. However, its significance depends on the market context and the price movement that follows.
The Nifty also formed a Bullish Harami pattern on the daily chart. This is a two-candlestick formation that technical analysts sometimes interpret as a possible sign of a reversal following a decline.
The analyst highlighted the location of these patterns as an important consideration. They appeared near a support zone defined by the 200-week EMA and an upward-sloping trendline associated with a rising price channel.
Longer-term moving averages and established trendlines are frequently monitored because market participants may use them to assess whether a broader trend is holding or weakening.
Despite the encouraging formations, the report cautioned that the market needs follow-through buying in subsequent sessions to confirm a potential reversal.
Nifty Support and Resistance Levels
The technical assessment identifies ₹22,200–₹22,250 as an important support zone for the Nifty during the week.
If the index falls below ₹22,200, the analyst expects the possibility of renewed downward pressure. Such a breakdown could indicate that the recent recovery has failed to establish a stable base.
On the upside, the ₹22,750–₹22,800 range is identified as a crucial resistance zone. Resistance refers to a price area where selling pressure may emerge and limit further gains.
A sustained move above ₹22,800 could open the way for the index to extend its recovery towards ₹23,100, followed by ₹23,300 in the short term, according to Shah’s analysis.
The emphasis on a sustained move is important. A brief intraday rise above resistance may not be sufficient to confirm a breakout if the index subsequently falls back below the level.
The Nifty’s next move will therefore depend on whether buyers can maintain momentum, how the index responds to support and resistance, and whether broader market conditions improve.
Technical Indicators Present a Mixed Picture
The Nifty’s momentum indicators and oscillators continue to suggest a broadly sideways market, according to the report.
The daily RSI and Stochastic indicators have registered bullish crossovers, pointing towards improving short-term momentum and suggesting limited downside pressure at the time of the assessment.
However, the index remains below important moving averages. This indicates that the recent recovery has not yet resolved the broader technical weakness.
The contrast between improving short-term indicators and the index’s position below major moving averages explains why the outlook remains cautious rather than decisively bullish.
A confirmed recovery would require continued buying interest and a sustained move through the identified resistance zone. Until then, the recent candlestick patterns should be viewed as tentative signals rather than proof that the market has entered a new upward trend.
Bank Nifty Outlook: Banking Index Shows Relative Strength
The Bank Nifty index outperformed the frontline indices during the previous week, recording a gain of 1.45%.
Despite the positive weekly performance, the index traded within a relatively narrow range of 1,048 points, its smallest weekly range since the final week of August, according to the report.
On the weekly chart, Bank Nifty formed a small-bodied candlestick with shadows on both sides. This pattern suggests that the index experienced movement in both directions but ended the period relatively close to its opening level.
The report also highlighted the index’s relative-strength ratio against the Nifty. The ratio chart showed a sequence of higher tops and higher bottoms, which technical analysts commonly interpret as evidence of relative outperformance.
This means the banking index has been performing comparatively better than the broader benchmark, although relative strength does not necessarily mean that the index will rise in absolute terms.
Bank Nifty remains below its important moving averages, while its momentum indicators and oscillators suggest sideways conditions. The daily RSI stood at 45 and was moving upwards, while the daily MACD had registered a bullish crossover.
These signals point towards some improvement in short-term momentum, but confirmation will depend on how the index behaves around its key technical levels.
Bank Nifty Support and Resistance Levels
The ₹55,900–₹56,000 range is identified as an important resistance zone for Bank Nifty.
According to the analysis, a sustained move above ₹56,000 could extend the recovery towards ₹57,000, followed by ₹57,600 in the short term.
On the downside, the ₹54,300–₹54,400 range is identified as a key support zone. A decline towards this area would bring the index closer to a level where buyers may attempt to defend prices.
The index’s relative outperformance is encouraging, but its position below key moving averages means the broader technical picture remains incomplete.
Investors tracking banking shares should also consider company earnings, credit growth, asset quality, deposit costs and interest-rate developments. Technical levels may help identify potential trading zones, but they do not replace an assessment of the banking sector’s underlying performance.
What Investors Should Watch During October 12–16
The week’s market direction will depend on whether the Nifty can build on its recent recovery and whether Bank Nifty continues to outperform the broader benchmark.
For the Nifty, the ₹22,200–₹22,250 support zone and ₹22,750–₹22,800 resistance zone are the principal levels highlighted in the analysis. For Bank Nifty, traders will be watching the ₹56,000 resistance level and support around ₹54,300–₹54,400.
At the individual-stock level, ICICI Lombard’s ability to maintain its recovery and Nykaa’s response around its moving-average support zones will be important to the recommendations outlined by SBI Securities.
Market participants should also monitor company announcements, quarterly results, global market movements, crude oil prices and changes in investor sentiment. These factors can affect both individual stocks and the broader indices, sometimes overriding short-term technical signals.
The end of the Nifty’s eight-week losing streak is a notable development, but one positive week does not establish a durable market reversal. Confirmation through subsequent price action remains essential.
Conclusion: Cautious Optimism as Nifty Attempts to Stabilise
The October 12–16 trading week begins with tentative signs of improvement in the Indian stock market. The Nifty has ended its prolonged losing streak, Bank Nifty has demonstrated relative strength, and technical indicators for ICICI Lombard and Nykaa suggest the possibility of further gains.
SBI Securities’ recommendations place ICICI Lombard in the ₹1,670–₹1,690 accumulation range, with a target of ₹1,810, while Nykaa has a suggested accumulation range of ₹337–₹343 and a target of ₹365. Both recommendations include stop-loss levels intended to help manage downside risk.
For the benchmark indices, the next moves around the identified support and resistance zones will be crucial in determining whether the recent recovery gains strength.
Investors should treat all price targets as analyst estimates rather than assurances of future performance. Technical analysis can help structure trading decisions, but it involves uncertainty and should be considered alongside company fundamentals, market conditions and individual risk tolerance.
Disclaimer: The stock recommendations and market views discussed in this article are attributed to the analyst cited by The Times of India. They do not constitute personalised investment advice or a guarantee of returns. Investors should conduct independent research and consult a qualified financial adviser where appropriate.
