Nuvama Wealth's Technical Desk has selected five companies displaying significant technical strength to navigate the start of Samvat 2083. The list includes Adani Energy Solutions, Coforge, KDDL, Punjab National Bank, and Zydus Lifesciences, all of which exhibit notable breakout formations or structural resilience. Catalysts such as a potential India-US trade deal, easing Iran tensions, and a rotation away from costly AI assets could drive broader market recovery. Furthermore, a price correction across precious metals may rechannel crucial liquidity directly back into the domestic equities market.
Key points
Extreme bearish positioning and remaining index futures short contracts create favorable…: Extreme bearish positioning and remaining index futures short contracts create favorable conditions for a sustained short-covering rally.
Multi-year chart breakouts across banking, energy, and healthcare sectors signal an impro…: Multi-year chart breakouts across banking, energy, and healthcare sectors signal an improving risk-reward setup for domestic equity investors.
Liquidity shifts away from precious metals and expensive global artificial intelligence s…: Liquidity shifts away from precious metals and expensive global artificial intelligence stocks could redirect capital toward Indian companies.
Sources checked by our analysis pipeline: 1
Diwali stock picks 2026: The Indian stock market is entering Samvat 2083 after a year of correction, consolidation and divergence across market segments. Persistent foreign institutional investor (FII) selling, global trade uncertainty and geopolitical tensions weighed on sentiment in Samvat 2082, even as corporate earnings remained relatively supportive.
However, Nuvama Wealth's Technical Desk believes the risk-reward for Indian equities is improving, supported by attractive valuations, extreme bearish positioning among foreign investors and potential triggers for a recovery. In its Diwali Picks 2026 report, the brokerage identified five stocks — Adani Energy Solutions, Coforge, KDDL, Punjab National Bank and Zydus Lifesciences — based on their technical structures and potential for further gains.
Nuvama identified Adani Energy Solutions as a potential structural turnaround candidate after the stock broke out of a three-year consolidation phase in April 2026. It was retracing towards its 50% Fibonacci level, which coincided with the previous breakout zone. The weekly chart also showed a positive 50-week moving average crossover, strengthening the bullish setup. The brokerage believed the retest of the breakout area could offer an attractive risk-reward opportunity.
Corporate leaders could soon accelerate their capital expenditures into compute capacity following a potential clean sweep by Democrats. Such an electoral outcome may incentivize executives to lock in investments under existing conditions rather than face regulatory uncertainty down the road. This strategy would effectively shield enterprise expansion plans from the prospective risks of altered federal rules in 2029.
Domestic equities logged their longest winning streak in nearly five months, buoyed by strong local participation, robust corporate earnings, and softening crude oil prices. Foreign institutional investors added further impetus by injecting around ₹7,200 crore into domestic shares since the start of November. However, ongoing geopolitical tensions and the outcome of the US midterm elections pose near-term external risks to the upward trajectory.
Market participants are tracking a noticeable decline in the company's equity value during current trading. At this stage, official explanations or specific corporate catalysts regarding the sudden equity retreat remain unavailable. Investors must monitor future corporate updates to determine the primary drivers behind the valuation shift.