Stocks To Buy: United Spirits, ITC & SBI, Says Motilal Oswal's Technical Desk

The Nifty is expected to face resistance at higher levels and is likely to trade in a broad range of 15500-16000. The Bank nifty is relatively strong and is showing clear signs of outperformance.

"At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in United Spirits, ITC and SBI," says Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services Ltd.

Nifty opened marginally lower and inched towards the making a low of 15500 zones. The index is seen facing some pressure at higher levels and getting some support at the lower levels and is hovering in a broader range of 15500 to 16000. Now the levels of 15700-15735 zone is a crucial levels where the index can face selling pressure as the resistances are shifting lower. India VIX is hovering at 22 which indicates volatility likely to continue and creating discomfort to the bulls. It needs to cool down for stability and a directional move in the market. Now till it holds below 15735 - 15700 zone we can expect a downside move towards 15500 and 15350 whereas a cross of this level could open for a higher side move towards 15888 and 16000 zones. Market breadth is negative which indicates that there is some selling pressure at higher levels.

Today, we are witnessing positive move in FMCG, Realty and Pharma whereas there is weakness seen in the sectors like Auto, Metal, Media and IT.

Bank Nifty opened gap down and moved lower towards 33080 level but recovered to 33400 zones. There is some strength visible in the banking space and is expected to outperform the market. Now it has to hold above 33333 zones for a bounce towards 33750 and 34000 zones whereas supports are placed at 33000 and 32750 zones.

Today, we are witnessing long built up in stocks like Srtfinance, Suntv, federal bank, ITC and HPCL etc. while short build-up is visible in counters like ONGC,Reliance, Coalindia, Coforge and Titan.