Metal, Private Sector Banking Stocks Higher In Trade Today

Nifty opened with a gap down but managed to hold key support at 16442 levels and has been consolidating in a range of around 100 points. The index is facing resistance at its 200 DEMA placed near to 16750 indicating some kind of pressure at higher levels but at the same time it is also holding to key support zones. India VIX is flat and hovering near 20 which needs to cool down for some stability in the market. Now it has to hold above 16500 for an up move towards 16666 and 16800 zones whereas supports is near to 16442 and 16400 zones. Market breadth has turned in favor of the declining counters indicating stock specific selling pressure at higher levels

Today, positive momentum was witnessed in Metal and Private Banking stocks while all other sectors are trading in the negative territory which includes Media, IT, Realty, FMCG, Pharma and Auto.

Bank Nifty opened with a gap down and drifted towards 35072 mark. It has been consolidating in a range since the opening and with strength seen in select Private banks. Now it has to hold above 35250 zones for an upmove towards 35750 and 36000 zones whereas supports are placed at 35000 and 34750 zones.

Today, we are witnessing long built up formation in stocks like Coromandel, Lalpath Labs, UBL, RBL Bank, ONGC etc. while short build-up is visible in counters like Voltas, Ibulhsgfin, Deepak Nitrate, Heromotoco and LTTS etc.

Nifty and Bank Nifty are expected to remain in a range with positive bias. Traders are advised to apply Buy on dips strategy as long as Nifty holds above the crucial support of 16400-16442 zones. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in stocks like Reliance, ONGC, TCS and ICICI Bank.

Courtesy: Technical and Derivatives Research, MOFSL