Kotak Securities analyst shares short-term stock picks and market levels

Sensex and Nifty 50 surged up to two percent in intraday deals on Thursday, October 15, driven by buying in select blue-chip shares. This positive movement came despite a selloff in global artificial intelligence stocks and a healthy start to second-quarter corporate earnings.

Market Levels

Amol Athawale, who serves as Vice President of Technical Research at Kotak Neo, states that 22,500 and 22,450 will act as important support levels for the Nifty 50. The current market pullback can stay intact as long as the index holds above these levels. A breakout above 22,800 could push the market toward 23,000, while a drop below 22,450 would weaken the uptrend and prompt traders to exit long positions.

Stock Recommendations

Athawale recommends three stocks for a one-to-two-week horizon. The first stock is taking a breather after a strong up move, with a consolidation structure pointing to a bullish continuation. Traders are advised to watch the ₹323 level, with a potential target of ₹360 if it holds above this price. The second stock has reversed from its support zone after a declining trend, forming a rounding bottom chart pattern on the daily scale alongside a steady uptrend. Its relative strength index also points to further gains, with a target of ₹1,040 as long as it trades above ₹960. The third stock shows a rising channel chart structure with higher highs and higher lows on the daily timeframe. Athawale notes that ₹1,555 will act as the trend-deciding level, with a possible target of ₹1,730 if it stays above this mark.

Context

Technical analysts use chart patterns, support zones, and indicators like the relative strength index to predict short-term price movements and help traders manage risk. These market projections apply specifically to a short trading window of one to two weeks.