Can Bulls Keep Nifty50 Above 18,000? Discover the main market indices ahead of Tuesday’s session

Indian equity benchmarks started the second trading week of 2022 on a strong note, driven by large-scale gains, driven by buying interest in financial, auto, metals and consumer stocks.

What do the charts suggest for Dalal Street now?

The Nifty50 formed a long bullish candle on the daily chart, with a lower degree of higher highs and higher lows, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

The index gained momentum after knocking out the resistance level of 17,950, he said.

A short-term correction is not excluded

A short-term correction cannot be ruled out, said Ruchit Jain, head of research at “We don’t expect a significant price correction as the nuance in Nifty and Bank Nifty remains bullish. Traders should look at good money management and add positions on the dips rather than chasing the upside. prices, ”he said.

Jain believes any dip to immediate supports at 17,800 and 17,650 should be viewed as a buying opportunity.

Here are the key things to know about the market ahead of the January 11 session:

Global markets

European stocks started the day on a low note and were on course to extend their losses for a third straight session. Soaring inflation has raised concerns that further rate hikes and rising COVID-19 cases are added to economic uncertainty. The pan-European Stoxx 600 index was down 0.2% at last count.

S&P 500 futures were flat, suggesting a tentative start on Wall Street.

What to expect on Dalal Street

HDFC Securities’ Shetti expects the Nifty50 to hit 18,200-18,350 levels over the next week, with immediate support at 17,870.

Corrective declines can be expected as the Nifty approaches the 18,150-18,200 resistance zone, but long-term investors need not worry. That’s the message from independent technical analyst Manish Shah.

“There could be opportunities for players who are considering mean reversion trades. As of yet, there is no sign of a corrective decline,” he said.

Shah believes the underlying market trend remains strong. “The MACD and the directional move are both in buy mode. The RSI is showing a breakout of the trendline and is still below overbought levels,” he said.

Key levels to watch

clever50: The 50-script index has support at 17,700 and resistance at 18,200, according to Sachin Gupta, AVP-Research at Choice Broking.

Smart bank: For the banking index, he sees support at 37,500 and resistance to 38,800.

Foreign Institutional Investors (FIIs) bought Indian stocks worth Rs 496.3 crore on Friday. However, net sales by domestic institutional investors amounted to Rs 115.7 crore, according to provisional exchange data.

December was the third consecutive month of outflows for Indian equities.

Exchange data shows that the maximum open call interest is accrued at the strike price of 18,500, with 85,000 contracts, and the second highest at 19,000, with almost 84,700 contracts. In addition, the maximum open interest rate is 17,500, with some 90,750 contracts, and the second highest at 17,800, with over 86,800 contracts.

This suggests a major hurdle each at 18,500 and Mount 19,000, and immediate support at 17,800, followed by a major cushion at 17,500.

Here are five stocks that saw an increase in open interest as well as price, suggesting an accumulation of long positions:

symbol Current OI CMP Price change (%) Change of IO (%)
CHAMBLFERT 27,79,500 434.95 2.24% 22.29%
PVR 26.30,441 1,432.20 4.73% 18.74%
IDFC 5,12,20,000 64.45 5.14% 18.49%
INDIACEM 1 42 01 300 252.6 4.86% 16.44%
CNBC 51.3 1.48% 12.51%

Long process

symbol Current OI CMP Price change (%) Change of IO (%)
PAGEIND 85 110 43,775 -0.85% -1.94%
IDEA 80.70.30,000 14.85 -2.30% -0.74%
PIDILITIND 09.21,000 2,721.90 -0.23% -0.43%

(Decrease in open interest as well as price)

Short cover

symbol Current OI CMP Price change (%) Change of IO (%)
GMRINFRA 8,32,50,000 48.45 5.67% -5.89%
DELTACORP 1,99,50,200 281.85 1.33% -3.99%
TATA POWER 11,42,77,500 232.9 1.02% -3.00%
RBL BANK 141.5 4.39% -2.69%
TVSMOTOR 76 02 000 646.85 1.36% -2.56%

(Increase in price and decrease in open interest)

Short construction

symbol Current OI CMP Price change (%) Change of IO (%)
IPCALAB 11.00.925 1062.80 -3.52% 120.56%
COFORGE 7 62 700 5,464.95 -4.32% 22.26%
WIPRO 2,65,80,000 693.8 -2.59% 18.40%
LTTS 6 61 600 5,631.90 -2.82% 16.44%
RAIN 36,00,000 241.9 -1.55% 12.64%

(Increase in open interest and decrease in price)

52 week highs

In the BSE 500 pack, Asian Paints, Pidilite, Birlasoft, India Cements, KPIT Tech, SRF, Poonawalla Fincorp, Kajaria Ceramics and Sunteck Realty were among the 16 stocks that hit 52 week highs.

52 week trough

One stock in the stock market’s largest index hit a 52-week low: MAS Financial Services.

Volatility gauge

NSE’s India VIX Index – which rates volatility expectations – ended Monday with a gain of 0.4% to 17.7, after jumping 4.5% during the session.


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