By Shivangi Sarda
Nifty opened flattish and after a slight decline in the initial tick, buying was seen at declines which are giving strength to the index. It is moving in a positive to range-bound manner. Till the index holds above key level of 17450, it can once bounce towards 17777 zones. Market breadth continues to be in favor of the advancing counters indicating stock-specific action in the street.
Bank Nifty opened negative and has been in pressure relatively. It is rebounding after breaching its previous day’s low levels. Support has shifted to 37000 levels whereas an upside hurdle exists at 37777 zones.
On the sectoral front, IT, Realty, Pharma and Media stocks are trading in the positive territory whereas all the other sectors are trading in the negative territory out of which Auto, FMCG and Banking stocks are facing the most weakness. We are witnessing long formation in stocks like Motherson Sumi, Apollo Hospital, Kotak Bank, Infosys, TVS Motor, Dalmia Bharat, BEL, Tata Consumer, Ultracemco, Titan etc. while short build-up is visible in counters like LT, Asian Paint, SBI Card, Eicher Motors, Marico, PVR, Indigo, Balkrishna, Maruti, Adani Ports etc.
Nifty and Bank Nifty are recovering from lower levels and one can buy on decline till it holds key support levels to play support based bounce back move. Traders are advised to play stock specific action.
(Shivangi Sarda is a Quantitative Analyst, Derivatives and Technical Research, Motilal Oswal Financial Services. Views expressed are the author’s own. Please consult your financial advisor before investing.