Market is largely positive

Mumbai, Oct 16

Today, the benchmark indices continued their positive momentum, with the Sensex was up by 862 points.

Among sectors, buying was seen in FMCG and Realty stocks, resulting in the FMCG index gaining 2 percent and the Realty index rallying 1.75 percent, whereas intraday profit booking was observed in selective PSU bank stocks.

Technically, the market opened with a gap-up and maintained positive momentum throughout the day. On daily charts, it has formed a bullish candle, and on intraday charts, it is holding an uptrend continuation formation, which is largely positive.

“We are of the view that the short-term market texture is bullish, but due to temporary overbought conditions, we could see range-bound activity in the near future,” says

. For traders, now, 83,200-82900 would act as key support zones. On the higher side, 83,800-84,000 would be the key resistance areas for the bulls. However, below 25,400,/82900 the uptrend would become vulnerable.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “While domestic equities have been in an oversold position accompanied with heightened volatility over the past few weeks, the sharp rebound today on the back of across-the-board buying ahead of Dhanteras have brought some cheers to the market.”

Positive global cues along with appreciating rupee and hopes of pick up in corporate earnings in the coming weeks aided the rally. However, choppy FII trend remains a major concern as US-India tariff issues coupled with geo-political tension could fuel outflows and weigh on markets."

Stock Picks

ICICI Bank – Buy | CMP: ₹1,417 | SL: ₹1,385 | Target: ₹1,470 / ₹1,500

ICICI Bank remains in a strong uptrend, supported by robust volume action and sustained buying from institutional investors. The stock is trading above key moving averages, indicating solid momentum. RSI is inching higher, showing strength in the trend. A decisive move above ₹1,417 could open the path toward ₹1,470 and ₹1,500. Traders may keep a stop-loss at ₹1,385 to manage downside risk effectively.

Parag Milk – Buy | CMP: ₹286.55 | SL: ₹275 | Target: ₹305 / ₹320

Parag Milk is witnessing strong follow-through buying after holding key support levels near ₹275. The stock is trending higher with improving volumes and positive RSI divergence, suggesting sustained demand. A close above ₹286.55 can lead to an upward move toward ₹305 and ₹320. Traders can look to accumulate on dips while maintaining a stop-loss at ₹275 to safeguard positions.

(Source – Mehta Securities)

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