Below is Comment on Most Mid Market update By Mr. Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services Ltd
Nifty opened gap up and has been inching to higher levels towards 16000 zone. The index has given a consolidation breakout on daily scale and has surpassed its 20 DEMA and is sustaining well at higher levels which indicates strength. Any dip towards 15888 can be utilized as a buying opportunity. India VIX has cooled off a bit and is at 20 levels which is giving respite to the bulls. However it needs to cool down below 18 zones for stability and a directional move in the market. Now till it holds below 15888 zone we can expect move towards 16161 and 16250 whereas supports are placed at 15888-15650 levels. Market breadth is positive which indicates that there support based buying at lower levels.
Today, we are witnessing positive move in Banking and Financial service, Metals, Realty, IT, Auto, Media and Pharma whereas there is weakness seen in the FMCG space.
Bank Nifty opened gap up and is relatively outperforming the broader market from the last four sessions. There is strength visible in the entire banking and financial service space which will support the prices to inch towards higher zones. Bank nifty has given a consolidation breakout on the daily scale and is forming a strong bullish candle indicating buying interest. Now it has to hold above 34000 zones for an up move towards 34500 and 34750 zones whereas supports are placed at 34000 and 33750 zones.
Today, we are witnessing long built up in stocks like SRT finance, Siemens, Drreddy and Crompton etc. while short build-up is visible in counters like RBL Bank, Coromandel, Dixon, SRF and Escorts.
Nifty and Bank Nifty is expected to trade with a positive bias and every dip can be utilised as a buying opportunity towards higher levels. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in ICICI Bank, SBI, Bajaj Finance and Tata Motors.
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