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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 but faced pressure at higher levels and drifted lower to 16300 zones. However the index recovered from lower levels and is now sustaining above its key support zone which is placed at 16400. India VIX has cooled off and is around 20 and needs to further come down for some stability in the market. Now it has to hold above 16400 for an up move towards 16500 and 16666 zones whereas supports is near to 16300 and 16161 zones. Market breadth has turned positive indicating support at lower levels.

Today, we are witnessing pressure in FMCG while most of the sectors are trading in the positive territory which includes Realty, Media, Banking and Financial services, IT, Metals and Pharma.

Bank Nifty opened with a gap up and inched lower towards 34840 zones. It has retested the previous breakout zone which is placed near 34800 and witnessing buying at lower levels. Now as long as it holds above 35250 zones we can expect a move towards 35500 and 35750 zones whereas supports are placed at 34800 and 34500 zones.

Today, we are witnessing long built up in stocks like ONGC, MFSL, Coalindia, JK Cement, Oberoi Realty and Naukri etc. while short build-up is visible in counters like Gujgas, Polycab, Deepak nitrate, TVS Motors, Lalpathlabs.

Nifty and Bank Nifty needs to hold their key support levels placed at 16400 and 34800 respectively. The index is expected to remain in a range with positive bias while there is some strength seen in the banking and financial space. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in stocks like ONGC, HDFC Bank, Canbank and Tata Motors.

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