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

What happened: The Sensex rose 308 points to close near 74,460 and the Nifty 50 advanced 116 points to settle at 23,053, while Nifty Midcap 100 and Nifty Smallcap 250 fell up to 2%. Sudeep Shah of SBI Securities shared his outlook with ETMarkets. Key numbers: Sensex +308 points to near 74,460; Nifty 50 +116 points to 23,053; midcap and smallcap indices down up to 2%; Nifty Why it matters: Shah said Nifty closing above 23,000 with a reclaimed 20-day EMA and RSI above 50 could hint at a shift in market dynamics, and he sees Nifty IT, Pharma and Healthcare showing strong relative strength.

The Sensex rose 308 points to close near 74,460 and the Nifty 50 advanced 116 points to settle at 23,053, while Nifty Midcap 100 and Nifty Smallcap 250 fell up to 2%. Sudeep Shah of SBI Securities shared his outlook with ETMarkets.

Shah said Nifty closing above 23,000 with a reclaimed 20-day EMA and RSI above 50 could hint at a shift in market dynamics, and he sees Nifty IT, Pharma and Healthcare showing strong relative strength.