Rebound on the cards for Nifty50 as Bulls defend 15,700


Indian equity benchmarks closed lower for a third straight day on Friday as gains in financials, IT and FMCG stocks were offset by losses in oil and gas stocks. Globally, aggressive pandemic-era interest rate hikes and their impact on the economy continued to put a damper on investors.

What do the charts suggest for Dalal Street now?

The Nifty50 formed a small negative candle on the daily chart with a long lower shadow, suggesting a reversal of the short-term bottomaccording to Nagaraj Shetti, technical research analyst at HDFC Securities.

A false break down from a small range at 15,700 is a positive sign, he said.

“If there’s no outlier on the global front, we won’t be surprised to see the Nifty50 break through 15,900-16,000 this week, for which the bank needs to come to the fore… The very good performance of the broader indices towards the end of last week is an encouraging sign,” Sameet Chavan, chief technical and derivatives analyst at Angel One, told CNBCTV18.com.

He sees strong support at the hallowed 15,700 mark followed by 15,500 this week. “It’s a tough task for the bulls to break through the strong wall around 15,900-16,000,” he said.

Here are the key things to know about the market ahead of the July 4 session:

Wall Street indices rebounded on Friday as investors embarked on the second half of the year ahead of the holiday long weekend. The S&P 500 and Dow Jones rose 1.1% each, and the tech-heavy Nasdaq Composite climbed 0.9%.

Earlier in the day, selling pressure on semiconductor stocks pressured European markets following a lukewarm outlook for US memory chip company Micron Tech. The Stoxx 600 finished slightly lower.

What to expect in Dalal Street

Nagaraj Shetti, technical and derivatives analyst, HDFC Securities believes that the 50-script index continues to be in a limited short-term trend until Friday’s recovery from the lows which suggests more upside.

A sustained move only above the 15,900-15,950 levels could bring the bulls back into the market, which could eventually pull the Nifty quickly towards the 16,200-16,300 levels, with immediate support at 15,630,” did he declare.

Important levels to follow

The Nifty50 continues to be around eight percent below its long-term simple moving average.

Period (Nb of sessions) Simple moving average
Nifty50 Sensex
5 15,802.7 53,058.5
ten 15,667.2 52,623.9
20 15,827.3 53,123.8
50 16,213.7 54,303
100 16,671.8 55,803.5
200 17,160.3 57,508

Open call/sell interest

The maximum call open interest is accrued at the strike price of 16,500, with nearly 94,000 contracts, and the second highest at 15,800, with 82,000 contracts, according to exchange data. The maximum open interest is 15,500, with over 83,000 contracts, and 15,000, with 82,000.

This suggests immediate resistance at 15,800 and immediate support at 15,500.

Here are five stocks that have seen an increase in open interest as well as price:

Store Current IO CPM Price change (%) Change in OI (%)
IDEA 574,140,000 8.55 1.79% 2.09%
BANQUEARODA 105 452 100 97.85 0.20% 5.69%
FEDERALLBNK 73,190,000 92.7 3.63% 7.10%
IDCFIRSTB 251,310,000 32.55 3.50% 1.48%
MANAPPURAM 29,274,000 88.7 4.05% 11.90%

Long relaxation

Store Current IO CPM Price change (%) Change in OI (%)
VEDL 61,361,400 213.95 -4.29% -2.14%
NTPC 67,146,000 141.15 -1.19% -1.82%
BEAUTIFUL 25,608,200 230.6 -1.43% -0.84%
AUBANQUE 6,526,000 578.2 -0.34% -2.47%
INDUSTRIAL TOWER 14,842,800 208.95 -0.38% -0.49%

(Decrease in open interest as well as price)

Short cover

Store Current IO CPM Price change (%) Change in OI (%)
GNP 204,416,000 29.7 2.41% -2.41%
AMBUJACEM 43,894,800 368.05 1.43% -2.89%
HDFCBANK 58,887,400 1,359.85 1.09% -1.69%

(Increase in price and decrease in open interest)

Store Current IO CPM Price change (%) Change in OI (%)
CGSB 77,215,600 130.55 -12.41% 50.56%

(Decrease in price and increase in open interest)

52 Week Highs

Five stocks from the BSE 500 – the exchange’s broadest index – broke through: ITC, TVS Motor, Varun Beverages, Jamna Auto and Blue Dart.

52 week lows

A total of 16 stocks hit 52-week lows:

ALKYLAMINE DBL JCHAC THYROCARE
BAJAJFINSV DEEPAKNI NATIONALUM VAIBHAVGBL
BIOCON HINDZINC NIACL VEDL
CHAMBLFERT INDIGOPNTS STAR HEALTH WOCKPHARMA


cnbctv18-forexlive-benzinga

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button