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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 up and went to touch 16704 level. The index has been consolidating since the initial tick in a narrow range of 100 points. Any dip towards lower levels of 16500 can be utilized as a buying opportunity for higher levels. India VIX has cooled off and is at comfortable levels near 16.68 which is supporting the bullish momentum in the market. Now till it has to hold above 16500 zone for an up move towards 16800 and 17000 whereas support is placed at 16500 and 16442. Market breadth is positive which indicates that there is buying interest in the market.

Today, we are witnessing positive move in the sectors including Banking and Financial services, Metals, Auto, Realty and Media while was some weakness seen in IT and Pharma.

Bank Nifty opened gap up in line with the broader market and is relatively outperforming since the last five sessions. Bank nifty is making higher highs from last 5 trading sessions and supports are shifting higher. Now it has to hold above 36500 zones for an up move towards 36750 and 37000 zones whereas supports are placed at 36500 and 36250 zones.

Today, we are witnessing long built up in stocks like Eicher Motors, Persistent, Rain, Ultracem, and Bharat Forge etc. while short build-up is visible in counters like Deepak Nitrate, Syngene, Infy and HDFC AMC etc.

Nifty is showing strength but Bank nifty is outperforming and has strong momentum which will take the prices higher. Any dip should be utilised as a buying opportunity in the index. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in Eicher Motors, ICICI Bank , HDFC Bank etc.

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