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Below is Comment on Most Mid Market update By Mr. Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services Ltd

Nifty opened with a gap up and inched towards 15750 level. However we have witnessed some selling pressure at higher levels and the index drifted lower towards 15620 zone. India VIX is flat and hovering at 21 which indicates volatility likely to continue and it needs to cool down for some stability in the market. Now till it holds above 15500 zone we can expect bounce towards 15750 and 15888 whereas a hold below this could open a downside move towards 15350 and 15200 zones. Market breadth is positive which indicates that there is some support at lower levels.

Today, we have witnessed positive movement in most of the sectors including Auto, PSU and Private Banks, FMCG, Metals and Media while some weakness was seen in the IT index.

Bank Nifty opened with a gap up and moved towards 33692 and is seen facing some resistance at higher levels. Now it has to hold above 33500 zones we can expect a bounce towards 33750 and 34000 zones whereas supports are placed at 33250 and 33000 zones.

Today, we are witnessing long built up in stocks like Muthoot fin, Eicher, JK cement, Escorts and Srtransfin etc. while short build-up is visible in counters like TechM, Infy, Coforge, HPCL and Lupin etc.

The index is facing resistance at higher levels and as long as we are below 15735 the bias remains on the negative side with some consolidation. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in M&M, TVS Motors, Bharat Forge etc.

Above views are of the author and not of the website kindly read disclaimer