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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 above 16000 level and made a high of 16070. The index could not sustain at higher zones and drifted lower. Any rise towards 16061 can be utilised as a selling opportunity in the index. India VIX has cooled off a bit and near 18 zones but it needs to cool down further below 18 zone for some comfort. Now as long as it below 16161, we can expect lower levels of 15888 and 15735 whereas resistance can be faced at higher levels of 16061 and 16161 zones. Market breadth has turned  negative which indicates that the market is facing pressure at higher zones.

Today, we are witnessing positive momentum in sectors including Pharma, Auto and Financial services while some weakness was witnessed in PSU Banks, IT, Metals, FMCG and Realty.

Bank Nifty opened flat and faced selling pressure and drifted lower towards 34700 zones. There is pressure in most of the banking names within PSU Banks and Private banks. Now as long as the index is trading below 35000 zone , we can expect lower levels of 34500 and 34250 while resistance can be faced at 35000 and 35250 zones.

Today, we are witnessing long built up in stocks like PVR, Drreddy, Kotak bank and UBL etc. while short build-up is visible in counters like Coforge, Mindtree, LTI etc.

Nifty and Banknifty have been facing resistance at higher zone. Going forwards, any rise can be utilised as a selling opportunity. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in Bharat Forge and Pidilite while selling opportunity is seen in RBL Bank, Coforge and Tech M.

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