FinanceSaturday, October 31, 20261 min read

F&O Talk: Big break above 23,200 can open doors for 23,500 for Nifty; Sudeep Shah picks 6 stocks ahead of Diwali

By Economic Times Markets · Published by Everything Blog

In short

The Sensex rose 308 points while the Nifty 50 advanced 116 points to finish at 23,053. Meanwhile, the Nifty Midcap 100 and Nifty Smallcap 250 indices tumbled by up to 2% under heavy selling pressure. Information technology shares outperformed the broader market, driven by strong technical momentum and a daily RSI positioning firmly in a super bullish zone.

Key points

Sudeep Shah identified the 22,800 to 22,750 zone as crucial technical support for the Nif…: Sudeep Shah identified the 22,800 to 22,750 zone as crucial technical support for the Nifty index.
A decisive breakout past the 23,200 resistance level could clear the path toward the 23,5…: A decisive breakout past the 23,200 resistance level could clear the path toward the 23,500 mark.
Late pullbacks in midcap and smallcap indices suggest emerging buying interest despite ex…: Late pullbacks in midcap and smallcap indices suggest emerging buying interest despite extended corrective trends.

Sources checked by our analysis pipeline: 1

The Sensex rose 308 points to close near 74,460 on Friday, while the Nifty 50 advanced 116 points to settle at 23,053. In contrast, broader markets came under heavy selling pressure, with the Nifty Midcap 100 and Nifty Smallcap 250 indices declining up to 2%.

Analyst Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities, interacted with ETMarkets regarding the outlook for the Nifty IT, FIIs, and an index strategy ahead of Diwali. The following are the edited excerpts from his chat:

1.) Nifty saw half a percent rise this week. What is your view on Nifty going forward and can the momentum continue in the coming week?

During October, the benchmark index Nifty traded within a narrow range of 731 points. However, beneath this relatively narrow trading band, the index witnessed heightened volatility throughout the month before managing to close above the crucial 23,000 mark. On the monthly chart, the index has formed a small-bodied candle with shadows on either side, reflecting indecisiveness among market participants. Notably, this formation has emerged following a strong…

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Key Points

Sudeep Shah identified the 22,800 to 22,750 zone as crucial technical support for the Nif…: Sudeep Shah identified the 22,800 to 22,750 zone as crucial technical support for the Nifty index.
A decisive breakout past the 23,200 resistance level could clear the path toward the 23,5…: A decisive breakout past the 23,200 resistance level could clear the path toward the 23,500 mark.
Late pullbacks in midcap and smallcap indices suggest emerging buying interest despite ex…: Late pullbacks in midcap and smallcap indices suggest emerging buying interest despite extended corrective trends.

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In short

Key Points

Sudeep Shah identified the 22,800 to 22,750 zone as crucial technical support for the Nif…: Sudeep Shah identified the 22,800 to 22,750 zone as crucial technical support for the Nifty index.
A decisive breakout past the 23,200 resistance level could clear the path toward the 23,5…: A decisive breakout past the 23,200 resistance level could clear the path toward the 23,500 mark.
Late pullbacks in midcap and smallcap indices suggest emerging buying interest despite ex…: Late pullbacks in midcap and smallcap indices suggest emerging buying interest despite extended corrective trends.

Topics

Finance

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F&amp;O Talk: Big break above 23,200 can open doors for 23,500 for Nifty; Sudeep Shah picks 6 stocks ahead of Diwali

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F&O Talk: Big break above 23,200 can open doors for 23,500 for Nifty; Sudeep Shah picks 6 stocks ahead of Diwali