Short-term market outlook is positive

Mumbai, Oct 23

Today, the benchmark indices witnessed profit booking at higher levels. The Sensex was up by 130 points.

Among sectors, the IT index outperformed today, rallying over 2 percent. Technically, after a gap-up open, market is consistently witnessing profit booking at higher levels. From the day's highest level, the market shed over 230/750 points. Additionally, on the daily charts, a bearish candle has formed, indicating temporary weakness. However, the short-term market outlook remains positive.

“For day traders, levels of 84,800 will act as key levels to watch,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

As long as the market trades below these levels, profit booking is likely to continue. On the downside, the market could slip to 84,300-84,000.

On the upside, above 84,800, the chances of reaching 85,300-85,500 would increase.

Stock Picks

Shipping Corporation of India (SCI) – Buy | CMP: ₹250 | SL: ₹240 | Target: ₹260 / ₹275

Shipping Corporation of India continues to show strength after sustaining above its key support zone of ₹240. The stock is witnessing strong volume activity and bullish sentiment within the shipping space. A breakout above ₹252 could open room for upside toward ₹260 and ₹275. Traders can maintain a stop-loss at ₹240.

Ola Electric – Buy | CMP: ₹54 | SL: ₹51 | Target: ₹58 / ₹60

Ola Electric has shown early signs of recovery after consolidating near ₹52 levels. The stock is witnessing accumulation with improved momentum indicators. A sustained move above ₹55 may trigger a breakout toward ₹58 and ₹60. Traders can keep a stop-loss at ₹51 to limit downside risk.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.