India’s equity benchmarks ended a volatile session slightly in the red on Friday as gains in oil and gas and IT stocks were offset by losses in financial stocks.
What do the charts suggest for Dalal Street now?
“Any upside from the 200-day exponential moving average could result in selling pressure near 16,800 unless the hurdle is decisively breached on the upside. On the weekly chart, the index has formed a small bullish candle with an upper shadow, suggesting the presence of crucial resistance at the highs,” he said.
Key resistance at 16,700-16,800
The 50-certificate index managed to clear 16,400 but has yet to break through the next key resistance at around 16,700-16,800 levels, Sameet Chavan, chief technical and derivatives analyst at Angel One, told CNBCTV18. .com.
“We are not completely out of the woods just yet… Keeping a close eye on global developments this week and with 16,400 being the level to watch from a price perspective. Above this level we can continue with a ‘buy on decline’ strategy. However, the upper side is up to cap where 16,800 is an immediate hurdle, after which 17,000 is a key psychological level,” a- he declared.
Chavan suggests traders not to trade aggressively and instead be selective in stock-specific trades.
Here are the key things to know about the market ahead of the June 6 session:
All three major Wall Street indexes fell on Friday after a strong U.S. jobs report eroded hopes of a pause in aggressive Fed policy tightening needed to calm inflation, high for decades. The Dow Jones fell 1.1%, the S&P 500 1.6% and the tech-heavy Nasdaq Composite 2.5%.
Earlier in the day, European stocks fell as investors raised their bets on ECB rate hikes after high inflation this week. The pan-European STOXX 600 index ended down 0.3%.
What to expect in Dalal Street
HDFC Securities’ Shetti believes the Nifty50’s short-term uptrend status continues to be intact, with no signs of a reversal from the highs.
“Further weakness may find strong support around the 16,400-16,350 levels and the Nifty may show a rebound higher from the lower levels. Sustained upside may only resume above the 16 hurdle 800,” he said.
Important levels to follow
Both the Nifty50 and the Nifty Bank are around 4% below their long-term simple moving averages, although they have broken through the 10 and 20 period levels.
| Period (Nb of sessions) | Simple moving average | |
| Nifty50 | Clever bank | |
| 5 | 16,596.2 | 35,564.8 |
| ten | 16,386.9 | 35,140.9 |
| 20 | 16,229.3 | 34,558.5 |
| 50 | 16,870.5 | 35,733.3 |
| 100 | 17,053.8 | 36,397 |
| 200 | 17,269.2 | 36,842 |
Mohit Nigam, Head-PMS at Hem Securities, identified the following resistance and support levels:
| Index | Support | Resistance |
| Nifty50 | 16,400 | 16,800 |
| Clever bank | 34,800 | 35,600 |
FII/DII activity
Open call/sell interest
The maximum call open interest is accrued at the strike price of 17,500, with nearly 99,000 contracts, and the second highest at 17,000, with nearly 94,000, according to exchange data. On the other hand, the maximum open interest to sell is 16,300, with more than 76,000 contracts, then 16,500, with almost 72,000.
This suggests immediate resistance at 17,000 and immediate resistance at 16,500.
Here are four stocks that have seen an increase in open interest as well as price:
| Store | Current IO | CPM | Price change (%) | Change in OI (%) |
| IBULHSGFIN | 3,48,99,800 | 122.8 | 4.16% | 7.02% |
| INDEPENDENT COPPER | 1,22,16,300 | 107.25 | 0.37% | 4.64% |
| BSOFT | 34,02,100 | 382.1 | 2.26% | 5.52% |
| RAIN | 61,82,500 | 168 | 0.18% | 2.78% |
Long relaxation
| Store | Current IO | CPM | Price change (%) | Change in OI (%) |
| IDEA | 61,60,70,000 | 9.2 | -4.17% | -1.41% |
| COALINDE | 2,80,89,600 | 196.35 | -0.36% | -6.96% |
| NTPC | 7,26,75,000 | 155.9 | -1.76% | -2.66% |
| ICC | 8,26,14,400 | 273.35 | -0.09% | -2.25% |
| ASHOKLEY | 3,99,01,500 | 139.7 | -2.88% | -3.53% |
(Decrease in open interest as well as price)
| Store | Current IO | CPM | Price change (%) | Change in OI (%) |
| INFI | 4,50,83,400 | 1,529.00 | 1.37% | -5.20% |
| M&MFIN | 1,95,92,000 | 187.9 | 1.08% | -5.68% |
| IOC | 3,31,76,000 | 118.25 | 0.13% | -2.17% |
| PETRONET | 1,12,89,000 | 227 | 0.42% | -6.00% |
| WIPRO | 2,88,31,200 | 478.45 | 0.61% | -2.28% |
(Increase in price and decrease in open interest)
| Store | Current IO | CPM | Price change (%) | Change in OI (%) |
| AMBUJACEM | 5,18,55,000 | 369.8 | -1.08% | 6.56% |
| IEX | 4,22,25,000 | 183 | -3.05% | 4.82% |
| RBLBANK | 4,88,62,100 | 106 | -3.42% | 3.67% |
| GRASIM | 1,18,85,925 | 1,342.10 | 6.68 | 10.70% |
(Decrease in price and increase in open interest)
A stock in the BSE 500 – the exchange’s broadest index – broke through: Ratnamani Metals & Tubes.
On the other hand, 10 scrips reached their lowest level in 52 weeks: Grasim, UltraTech, Shree Cement, Ramco Cements, JK Cement, Lux Industries, Equitas Small Finance Bank, Ipca Labs, Dalmia Bharat and Hikal.
The India VIX – known in market parlance as the Fear Index – fell 1.7% to 20 on Friday.
First post: STI
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