IGI Logo

Below is Comment on Most Mid Market update By Mr. Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services Ltd

Nifty opened with a gap down and recovered to higher levels from the low of 16443. It is trading in a volatile manner and making lower highs on daily scale indicating some kind of pressure at higher levels. India VIX is flat and hovering near 20 which needs to cool down for some stability in the market. Now it has to hold above 16500 for an up move towards 16666 and 16800 zones whereas supports is near to 16442 and 16400 zones. Market breadth continues to be in favor of the advancing counters indicating buying at support zones.

Today, positive momentum was witnessed in IT, Media and PSU Banking stocks while all other sectors are marginally trading in the negative territory which includes Auto, FMCG, Pharma and Metals.

Bank Nifty opened with a gap down but held its previous day’s low. It has been consolidating in a range of about 250 points with strength seen in PSU banks. Now it has to  hold above 35500 zones for an upmove towards 35800 and 36000 zones whereas supports are placed at 35250 and 35000 zones.

Today, we are witnessing long built up formation in stocks like Crompton, Voltas, Federal Bank, Cipla, Coalindia, Polycab, HAL etc. while short build-up is visible in counters like Apollo Hosp, Hero Moto, UBL, Apollo Tyre etc.

Nifty is expected to remain in a range while Bank nifty may outperform. Traders are advised to apply buy on decline strategy at the support zones. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in stocks like Reliance, Bajaj Finance, Voltas and HAL.

Above views are of the author and not of the website kindly read disclaimer