The Nifty index has shown signs of recovery, closing above its 10-day moving average. Key levels to watch are resistance at 23,500 and support at 22,719. According to HDFC Securities, investors may consider purchasing GPIL at Rs. 285 with a target price of Rs. 300 and a stop loss at Rs. 275. Similarly, Tata Elxsi could be bought at Rs. 4,360 with a target price of Rs. 4,550 and a stop loss at Rs. 4,100.

ER&D companies are expected to show modest growth in Q4FY26, as demand stabilizes but recovery is delayed. Among them, KPIT is favored for its projected 1.6% increase, while Tata Elxsi and Cyient anticipate smaller gains. Improved margins could come from currency depreciation and cost control measures. Analysts recommend buying shares of KPIT, Cyient, and LTTS, but advise reducing holdings in Tata Elxsi.