Angel One has unveiled its Diwali stock recommendations for 2025, based on technical analysis, as India gears up for Diwali 2025 and the new Samvat 2082. The Nifty index is at a crucial point, having seen a price correction earlier this year. It formed a base around 22,000 before recovering to 25,500. This was followed by a consolidation phase.

The daily chart reveals a ‘Contracting Triangle’ pattern forming. As prices near the apex, a breakout is expected. “Hopefully, considering the positive placement of momentum oscillator, the breakout happens in the upward direction. This price development, if combined with any positive trigger on the global front, we would see prices challenging all time high level of 26277 in coming months. As far as supports are concerned, 24500 – 24300 – 23900 are to be seen as major supports,” said Angel One’s technical analysts.

The Bank Nifty index has shown strong performance and recently broke out from an “Inverse Head and Shoulders” pattern, indicating a bullish trend. The breakout neckline at around 53,500, established in the first quarter of this fiscal year, provides solid support. The 200 DSMA further strengthens the medium-term bullish outlook.

Examining the primary trend suggests significant upward movement if the index surpasses its lifetime high of 57,630. This could reignite momentum towards the target range of 58,100 to 58,500. Despite global uncertainties, Bank Nifty enters the festive season with cautious optimism due to strong fundamentals and disciplined policy action.

Angel One has identified five stocks for Diwali 2025. Bank of Baroda has been strong since September, forming a base around 230 and rallying to 265 within a month. The chart setup remains robust with sustained momentum and positive sector sentiment. Buying is recommended in the 265-268 range with a target of Rs 340 and a stop loss at Rs 229.

L&T has consolidated between 3,100-3,900 since early 2024 and recently surpassed resistance at 3,700-3,750. The stock shows a higher-top, higher-bottom formation and remains above key moving averages. Accumulating L&T in the 3,750-3,780 zone is advised for a target of Rs 4,300 with a stop loss at Rs 3,520.

Syrma SGS Technology experienced a strong breakout with high volumes and is trending higher after retesting its breakout zone. Major EMAs support this trend with the RSI in bullish territory. A buy is recommended in the price range of 840-835 with a stop loss at Rs 750 and a target of Rs 1,000.

TCS has declined nearly 25% this year but sits near significant historical support. A bullish divergence between price action and RSI suggests potential for reversal. The MACD histogram indicates oversold conditions that may lead to recovery. Buying TCS around 3,000-2,950 is suggested with a stop loss at Rs 2,700 and a target of Rs 3,500-3,600.

Vedanta has broken out across multiple timeframes and is resuming its primary uptrend after consolidation. Prices remain above major EMAs with strong support from the 20 & 50 DEMA. Buying Vedanta in the range of 475-480 is recommended with a stop loss at Rs 415 and a target of Rs 575.

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