Downside Limited, Use Dips For Buying: Angel Broking

There is limited downside in the market and the Nifty has strong support in 7,900-8,000 range, domestic brokerage Angel Broking said in a report, citing above-average December series rollover data. 

"We believe that the downside is limited for the market. At present, 7,900-8,000 is seen as a strong support and hence, any dip should be construed as a good buying opportunity," the brokerage said. 

According to the brokerage, most of the short positions created in index futures by foreign institutional investors during the correction from 8,300 levels have been lightened up and on the index options front, 8,000 put options have attracted good open interest addition. 

Meanwhile, 8,200 and 8,500 call option has also attracted good open interest, the brokerage added. 

Based on the rollover data, Angel Broking said Bharat Forge could be bought above its near-term resistance of Rs 915-920, while traders should avoid building long positions in Maruti Suzuki at current levels. 

However, shares like Castrol India, Ashok Leyland and Tata Motors DVR are likely to witness trading action as rollover and liquidity in these counters have been high, the brokerage said.