As the festival of lights ushers in a new Samvat year, markets too appear ready for a phase of renewed brightness. Diwali often symbolizes optimism and fresh beginnings — a fitting time to identify stocks that exhibit strong technical setups, improving momentum, and favourable risk–reward structures.
This year’s Diwali Picks highlight three stocks poised to deliver potential upside in the months ahead, supported by robust technical patterns and strengthening relative performance.
Aditya Birla Sun Life AMC Ltd. (NSE: ABSLAMC)
CMP: ₹865 Target: ₹1,100 Stop Loss: ₹780
Aditya Birla Sun Life AMC Ltd. (ABSLAMC) is on the verge of completing a cup and handle pattern, a bullish continuation setup that indicates potential for sustained upward movement.
After a sharp rally from around ₹300 levels in 2023 to ₹911 in December 2024, the stock underwent a healthy correction, retracing 61.8% of its prior advance. The retracement found support at this Fibonacci level in April 2025, triggering a steady rebound. This price action has resulted in the completion of a well-defined cup and handle formation.
The On-Balance Volume (OBV) indicator exhibits a positive divergence, highlighting accumulation, while the Relative Strength (RS) line against the Nifty 500 shows the stock’s outperformance. Sustained strength above key moving averages and a breakout above ₹900 could mark the start of a renewed uptrend.
The stock offers a favourable risk–reward opportunity at current levels. A sustained move above ₹900 can open the path toward ₹1,100, while a close below ₹780 would negate the bullish view.
Prestige Estates Projects Ltd. (NSE: PRESTIGE)
CMP: ₹1,676 Target: ₹2,050 Stop Loss: ₹1,490
While the Nifty Realty index currently sits in the lagging quadrant on the Relative Rotation Graph (RRG), the sector’s relative momentum has been steadily improving, signalling early signs of a turnaround. Prestige Estates Projects Ltd., (PRESTIGE) one of the key constituents, stands out for its strengthening structure.
Between early 2023 and early 2024, the stock delivered a remarkable fivefold rally — from ₹380 to ₹2,000. The ensuing correction retraced about 61.8% of this upmove, with support emerging near the Fibonacci level in April 2025. Since then, the stock has been consolidating, forming a well-defined inverse head and shoulders pattern, a bullish reversal setup.
The stock now trades close to the neckline resistance, with rising volumes and a strengthening OBV, both confirming accumulation. Meanwhile, the RS line versus the Nifty 500 is on the verge of a breakout from its downward trendline, reinforcing the bullish bias.
Prestige Estates presents an attractive setup ahead of a potential breakout. A sustained move above the neckline could fuel a rally toward ₹2,050, while a breach below ₹1,490 would invalidate the bullish pattern.
Shipping Corporation of India Ltd. (NSE: SCI)
CMP: ₹229 Target: ₹305 Stop Loss: ₹205
After a period of sideways movement over the past year, Shipping Corporation of India Ltd. (SCI), appears to be gathering momentum for its next leg higher. The stock found strong support near ₹178 — a level that coincides with both the 78.6% Fibonacci retracement of the prior upmove (₹77 to ₹384) and the 200-week moving average, underscoring the significance of this support zone.
Currently, the stock is trading close to its horizontal resistance, and increasing volumes suggest that a breakout may be imminent. The OBV has been steadily rising, reflecting accumulation, while the MACD remains in positive territory — confirming the resumption of bullish momentum from a longer-term perspective.
The stock presents a favourable risk–reward setup at current levels. A decisive breakout above resistance could propel prices toward ₹305, while a move below ₹205 would warrant re-evaluation of the bullish stance.
As we step into the new Samvat year, the underlying market sentiment appears constructive, supported by improving sectoral breadth and rotational strength. The three ideas — Aditya Birla Sun Life AMC (ABSLAMC), Prestige Estates (PRESTIGE), and Shipping Corporation of India (SCI) — showcase strong technical structures backed by healthy participation and improving relative strength.
These stocks may serve as “beacons of opportunity” this Diwali — illuminating potential paths to growth.
-Foram Chheda, CMT