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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 is consolidating in a range. The index is volatile and broke its previous day’s low levels. Any rise towards 16161 can be utilised as a selling opportunity in the index. India VIX has cooled off a bit and near 18 zones. Now as long as it below 16161, we can expect lower levels of 16950 and 15888 whereas resistance can be faced at higher levels of 16161 and 16250 zones. Market breadth is positive which indicates that there is buying interest in the market but pressure at higher zones.

Today, we are witnessing positive momentum in most of the sectors including FMCG, Pharma, Media, Metals, Auto, PSU Banks and Realty while some weakness move was witnessed in Private Banking and IT stocks.

Bank Nifty opened gap up and moved lower towards 34900 zones. It is facing resistance at higher levels with some weakness in Private banking space. Now it has to cross and hold above 35000 zones for an up move towards 35250 and 35500 zones whereas supports are placed at 34750 and 34500 zones.

Today, we are witnessing long built up in stocks like Ultratech, Indigo, Dabur, Mindtree and Petronet etc. while short build-up is visible in counters like Indusind bank, Gail, Hcltech, IOC and TCS etc.

Nifty and Banknifty have been facing resistance at higher zone. In Nifty we can utilize and rise for selling opportunity at resistance zone. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in Pidilite, VBL, Dalmia Bharat, HUL etc.

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