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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 down and is facing resistance at higher levels. The index is making lower lows since the last 3 trading sessions which is providing some discomfort at higher zones. Any rise towards 16161 can be utilised as a selling opportunity in the index. India VIX is flat near 19 zones. However it needs to cool down below 18 for stability and a directional move in the market. Now till it holds below 16161, it can move down to 16061 and 15950 zones whereas  bounce can be seen towards 16250. Market breadth is positive which indicates that there is buying interest in the market but pressure at higher zones.

Today, we are witnessing weakness in most of the sectors including Metals, FMCG, Auto, Media, IT, Pharma, Reality, Private banks whereas some positive move was witnessed in PSU Banks.

Bank Nifty opened gap down and is stuck in a range of 200 points and consolidating with some strength seen in PSU banks. Now it has to hold above 35000 zones for an up move towards 35500 and 35750 zones whereas supports are placed at 35000 and 34750 zones.

Today, we are witnessing long built up in stocks like Industower, Mindtree, Dixon, Concor and Apollo Hospitals etc. while short build-up is visible in counters like NMDC, Aartiind, Deepak Nitrate and Alkem etc.

Nifty is showing signs of weakness while Banknifty is holding at higher levels. In Nifty we can utilize any rise for selling opportunity while in Bank nifty any dip should be utilised as a buying opportunity for higher levels. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in M&M Fin, Eicher Motors and Pidilite.

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