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More pain to come for the D-Street bulls?  Discover the main market indices ahead of Tuesday’s session

India’s stock indices fell 2% each – their worst single-day drop since April – in a highly volatile session on Monday. A massive sell-off across all sectors, led by financials, oil and gas, auto and IT stocks, pushed indexes lower. The stock market crash comes at a time when the Nifty50 broke a series of records in an almost one-sided rally over the past 18 months.

What do the charts for Dalal Street suggest now?

The 50-script index formed a large bearish candle on the daily chart and hit lower highs and lows for four consecutive sessions, according to Chandan Taparia, vice president – Equity and Technical Derivatives, Brokerage and Distribution, Motilal Oswal. Financial Services.

Until the Nifty50 stays below 17,500, weakness could continue towards 17,250 and 17,000 with a key obstacle at 17,650 and 17,777 on the upside, he said.


Prepare for 17,000

The index fell below crucial support at its exponential 10-week moving average of 17,650 and fell, said Nagaraj Shetti, technical research analyst at HDFC Securities.

“The market appears to have entered a strong downward correction. The overall chart setup looks weak and more weakness could be in store in the near term. A minor recovery from lows cannot be ruled out in the near term, ahead another round of weakness … Lower levels of 17,000 to 16,800 need to be watched over the next few weeks, ”he said.

Here are the key things to know about the market ahead of Tuesday’s session:

Global markets

Wall Street indices were expected to rise on Monday as energy and banking stocks recovered slightly from losses last week. Futures on the S&P 500 rose 0.2%, before the US opened. Upcoming economic data and an expected announcement on the upcoming Federal Reserve chairmanship could contain the gains.

European stocks gave up their initial gains to fall slightly, with traders assessing the likely impact of new European restrictions linked to COVID-19 on the economic outlook. The Stoxx 600 index was down slightly.

What to expect on Dalal Street

Sameet Chavan, chief technical and derivatives analyst at Angel One, said Monday’s drop validated his cautious stance. he is waiting small rebounds in the market, which he thinks is a bit oversold, but sees a strong possibility of a further correction.

“After 17,250, the Nifty should continue this weakness towards the psychological level of 17,000, where the situation needs to be reassessed. On the other hand, immediate obstacles are now placed at the 17,500-17,650 levels. Traders are advised to use the recoveries to lighten the long ones and avoid rushing the groundfish, ”he said.

Independent technical analyst Manish Shah expects the Nifty to drop to 17,400 over the next few days, advising traders to take positions in a few months.

Key levels to watch

clever50: Slight resistance for the Nifty50 is expected at 17,500 and support is at 17,200, according to Mohit Nigam, Head-PMS at Hem Securities.

Smart bank: For the banking index, support is seen at 36,700 and resistance at 38,300, he said.

Foreign Institutional Investors (FIIs) offloaded Indian stocks worth Rs 3,438.8 crore on Monday. However, domestic institutional investors made net purchases of Rs 2,051.2 crore., according to provisional exchange data.

The maximum open interest is at the strike price of 18,000 with contracts of 1.6 lakh, and the next highest at 17,800 with contracts of 1.2 lakh, while The highest open interest is accumulated at the 17,000 mark, with around 79,750 contracts, according to NSE data. This suggests that we can expect immediate resistance at 17,800, followed by a major hurdle now at 18,000 instead of 18,200, and support at 17,000.

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 (%)
PEL 33.56.925 2,589 1.16% 15.15%
PIIND 15.77.750 2881.45 0.26% 4.45%
ASIAN PAINTING 31 61 700 3262.10 1.03% 4.13%
ELECTRICAL NETWORK 194.05 0.70% 4.04%
HINDALCO 2,23,44,950 443.2 0.43% 3.34%

Long process

symbol Current OI CMP Price change (%) Change of IO (%)
RECLTD 133.8 -1.65% -17.39%
IBULHSGFIN 3,32,28,900 205.05 -5.24% -16.27%
BSOFT 05.31.700 459.95 -2.14% -15.61%
BIOCON 1 27 62 700 358.05 -2.35% -13.16%
PELLETS 1,24,34,100 305.6 -0.08% -11.61%

(Decrease in open interest and price)

Short cover

symbol Current OI CMP Price change (%) Change of IO (%)
SYNGENE 10 93 100 605.5 0.10% -9.80%
IDEA 10.55 5.50% -8.86%
IRCTC 94,39,625 890 0.03% -8.68%
BRITISH 13.80,000 3,588 0.18% -5.84%
JSWACIER 3.48,28,650 660.4 1.54% -4.83%

(Price increase and open interest decrease)

Short construction

symbol Current OI CMP Price change (%) Change of IO (%)
SIEMENS 16,23,325 2 261.15 -2.38% 29.49%
ALKEM 6,28,200 3,280 -5.97% 26.97%
BATAINDIA 17,79,250 2,070.05 -3.61% 15.24%
HDFC 1 07 64 600 2,892.30 -1.11% 13.05%
MFSL 20.05.250 925.6 -2.41% 12.25%

(Increase in open interest and decrease in price)

Bharti Airtel, Escorts, Raymond, Solar Industries and Tanla were among the 10 stocks on the BSE 500 index – the widest gauge on the stock market – which have peaked in 52 weeks.

52 week trough

Seventeen stocks in the index hit 52-week lows, including Hero MotoCorp, Lupine, Aurobindo Pharma, Strides Pharma Science, Aarti Drugs, Aegis Logistics, Amara Raja and Spandana Sphoorty.


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