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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 inched lower to make a low of 15687 level. The index is moving to higher levels and is seen holding its crucial support levels of 15700-15735 zone. India VIX is slightly up around 2.5% and 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 till it holds above 15735 – 15700 zone we can expect bounce towards 15950 and 16000 whereas a hold below this could open a downside move towards 15555 and 15350 zones. Market breadth is negative which indicates that there is some resistance faced at higher levels.

Today, we are witnessing weak movement in most of the sectors including Banking, FMCG, Pharma, IT, Auto, Realty, Media and Metals.

Bank Nifty opened gap down and moved lower towards 33185 and is seen facing some resistance at higher levels. Bank nifty is trading in a narrow range of around 200 points. 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 Ultratech, ACC, Petronet, Nestle and Reliance etc. while short build-up is visible in counters like Asian paints, Bata India, Dr reddy, and LT etc.

The index has surpassed its key level of 15735 but there is some 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 Reliance, Ultratech and HCL Tech and ONGC.

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