Short-term outlook of market is positive

The benchmark indices bounced back sharply. The Sensex was up by 485 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Media index outperformed today, rallying by 4.30 per cent.

Technically, on the backdrop of positive global sentiment, our market opened with a gap up. After a strong opening, it registered narrow-range activity throughout the day.

However, the short-term outlook of the market remains positive. Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “For trend-following traders, 83,800 would act as a key support level.

As long as the market trades above this level, the uptrend is likely to continue. On the higher side, it could move up to 84,500-84,700.

“On the flip side, below 83,800, we could see a quick intraday correction. If it falls below this level, the next support is around 83,500. Further downside may also continue, potentially dragging the market to 83,200.”