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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 marginally positive and inched lower thereafter. The index is seen facing some pressure at higher levels as a result of which it is unable to surpass 15900 zones but some support is visible at the lower levels which is holding the market. It is hovering in a broader range of 15650 to 15950. India VIX is hovering at 22 which indicates volatility likely to continue and creating discomfort for the bulls. It needs to cool down for stability and a directional move in the market. Now again a hold of its crucial support levels of 15700-15735 zone is very important for the move towards higher levels. Till it holds above 15735 – 15700 zone we can expect a bounce towards 15950 and 16000 whereas a hold below this could open a downside move towards 15555 and 15350 zones. Market breadth is positive which indicates support for the market at lower levels.

Today, we are witnessing positive move in Banking and Financials whereas weakness in most of the sectors including Realty, Metals, IT, Pharma, Auto and FMCG.

Bank Nifty opened gap down and moved lower towards 33660 zones and is seen facing some resistance at higher levels. Now it has to hold above 33000 zones for a bounce towards 33750 and 34000 zones whereas supports are placed at 33000 and 32750 zones.

Today, we are witnessing long built up in stocks like Kotak bank, Marico, ICICIGI, LT and HDFC Life etc. while short build-up is visible in counters like Indigo, Motherson, Cipla, SBI cards and Havells.

The index has surpassed its key level of 15735 but there is pressure at higher levels of 15888-16000. Overall we expect the index to trade in a broader range with capped upside. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in MCX, Tata elxsi whereas selling opportunity can be LTI, Tata Power and Cipla.

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