After The Bell: The market slips again after setting a record high, what should be the investment strategy on Wednesday

After a good rally, the market slipped in the last hour. Nifty closed 90 points from the upper level while Sensex fell 268 points. Midcap index broke 247 points from above. Auto, IT stocks saw a sell-off, while Pharma, PSE, CPSE stocks were under pressure. On the other hand, FMCG, Metal, Realty stocks were profit-booking. Buying in private banks led to a hat-trick of gains in Nifty Bank.

Nifty Bank has closed at the high level of 5 weeks. Nifty Bank has closed above 35,500 for the first time since June 3. Sensex touched record high in intra-day today. 30 out of 50 Nifty stocks declined. 19 out of 30 Sensex stocks were selling. 8 out of 12 stocks of Nifty Bank remained under pressure.

Nifty closed 16 points lower at 15818. At the same time, the Sensex has fallen 19 points and closed at 52861. Bank Nifty climbed 367 points to close at 35579. Midcap has fallen 14 points and closed at 27149.

Vinod Nair of Geojit Financial Services Says that today the leadership of financial stocks was seen in the Indian markets. Most of the big banks and NBFCs have had a good June quarter business update. This has indicated an improvement in business activities and a diminishing effect of the second wave of Corona.

He further said that despite all this, by the last hours of the trading day, all the air in the market was lost due to profit making. On the global front, after the postponement of the meeting called by OPEC on the issue of production, there was a boil in oil prices.

Meanwhile, India VIX has also seen an increase of 1.70 percent and it has increased from 12.06 to 12.27. Lower volatility is indicating a range bound move. But at the same time it is an indication that buying should be done in the fall.

On the auction front, the highest put OI has been seen at 15,500 and then 15,000 levels. At the same time, the highest call (OI) open interest has been seen at the level of 16,000 and then 16,500. Option data indicates that the immediate trading range of Nifty may remain in the range of 15,600 to 16,000.

Market veterans say that Nifty has closed above 15,800 in today’s trading. This is a positive sign. For Nifty to go above 16,000, closing above 15,915 has to be given.

What’s the investment strategy on Wednesday

Motilal Oswal’s Chandan Tapadia Says Nifty formed a bears doji candle with long upper seds on daily scalp today which is an indication that new buying is not being seen at higher levels.

He further said that Nifty will have to stay above 15,800 for it in the 15,915 and 16000 zones, while below it has support in the 15,700 and 15,600 zones.

Share Khan’s Gaurav Ratnaparkhi Says that Nifty continued the positive trend in today’s trading as well and tried to achieve new highs in the first half of the trading day. However, on the upside, Nifty faced heavy resistance and finally closed in the red. Despite this, the overall outlook for the market still remains positive. In the next few weeks, we can see the level of 16,400 in Nifty. On the downside, there is good support for Nifty at 15,635.

Manish Hathiramani of Deendayal Investments Says that the intraday Nifty crossed the level of 15,900 today but it also took a fast U turn and closed 100 points below the day’s high. There is a huge resistance for Nifty at 15,900. Unless Nifty closes above this level, the market will remain sideways with a positive trend.

Support for Nifty is at 15,400 on the downside. Any downside would be buy advice for higher targets.

Mohit Nigam of Hem Securities Says that the immediate resistance for Nifty is seen at 15,900. At the same time, there is an important support for this at 15,600.

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