Dalal Street bulls failed to keep headline indices -- Sensex and Nifty50 -- afloat in the green for the fourth session in a row. Globally, geopolitical tensions kept investors on the back foot. All eyes were on newsflow on the Russia-Ukraine conflict.
What do the charts suggest for Dalal Street now?
The Nifty50 has formed an erratic pattern on the daily chart -- a long leg doji formation suggesting indecision of the bulls and the bears -- though the market appears in no mood to give up despite poor breadth, Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, told CNBCTV18.com.
The index once again failed to close above its 20-day simple moving average, in a grossly negative sign, he said.
Vicious volatility
A decisive move on either side of the 17,000-17,350 band may give some direction to the market, said Rupak De, Senior Technical Analyst at LKP Securities. "The vicious volatility in the index may continue till the time it remains within the range," he said.
The expiry of February futures & options contracts is due on Thursday.
Here are key things to know about the market before the February 22 session:
SGX Nifty
At 7:42 am on Monday, Singapore Exchange (SGX) Nifty futures -- an early indicator of the Nifty index -- were down 209.5 points or 1.2 percent at 16,996.5, suggesting a gap-down opening ahead on Dalal Street.
Global markets
Equities in other Asian markets began Tuesday on a sharply negative note amid geopolitical tensions, as Russia ordered troops into eastern Ukraine. MSCI's broadest index of Asia Pacific shares outside Japan was down 1.5 percent at the last count. Crude oil hit a seven-year peak.
Japan's Nikkei 225 and Hong Kong's Hang Seng were down 2.2 percent each. China's Shanghai Composite was down 1.3 percent, South Korea's KOSPI 1.8 percent and Singapore's Straits Times 0.7 percent.
S&P 500 futures were down 1.6 percent. On Monday, Wall Street was shut for a holiday.
What to expect on Dalal Street
On Tuesday, the 50-scrip index can move in the 17,000-17,250 range, said Chouhan, who believes:
Independent technical analyst Manish Shah is of the view that a breakout above major resistance at 17,490-17,510 can trigger a rally in the index towards 17,600, and a drop below support at 17,250-17,240 to lead to 17,100-17,050 levels.
He expects the February series to end in the 17,000-17,500 range.
Levels to watch out for
Mohit Nigam, Head-PMS at Hem Securities, has identified the following levels:
| Index | Resistance | Support |
| Nifty50 | 17,400 | 17,050 |
| Nifty Bank | 38,100 | 37,100 |
FII/DII activity
Foreign institutional investors (FIIs) net sold Indian equities worth Rs
2,261.9 crore on Monday, according to provisional exchange data. However, domestic institutional investors (DIIs) saved the day with net purchases of Rs 2,392.9 crore.
Call/put open interest
Exchange data shows the maximum call open interest is accumulated at the strike price of 18,000, with 1.8 lakh contracts, followed by 17,500, with nearly 98,000 contracts. On the other hand, the maximum put open interest is at 17,000, with 1.3 lakh contracts.
This suggests the Nifty has immediate resistance at 17,500 followed by the major hurdle of 18,000, and significant support only available at 17,000.
Long build-up
Here are five stocks that saw an increase in open interest as well as price, suggesting a build-up of long positions:
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| MARUTI | 24,38,900 | 8,591.80 | 0.41% | 15.35% |
| DABUR | 1,04,17,500 | 552.3 | 0.80% | 11.98% |
| MPHASIS | 13,37,175 | 3,054.40 | 1.19% | 11.28% |
| MINDTREE | 22,14,200 | 3,851.10 | 1.40% | 10.88% |
| ACC | 19,28,500 | 2,183.15 | 0.21% | 10.72% |
Long unwinding
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| M&MFIN | 2,77,00,000 | 153.9 | -0.90% | -21.49% |
| RAMCOCEM | 16,60,050 | 825 | -1.25% | -17.61% |
| LAURUSLABS | 51,47,100 | 540.05 | -2.50% | -17.28% |
| SYNGENE | 7,96,450 | 547.55 | -2.52% | -14.73% |
| APLLTD | 18,16,500 | 693.8 | -1.24% | -12.06% |
(Decrease in open interest as well as price)
Short-covering
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| GUJGASLTD | 20,30,000 | 663.2 | 0.43% | -15.64% |
| IDEA | 57,12,70,000 | 11.2 | 5.16% | -5.50% |
| HONAUT | 8,400 | 40,599.80 | 0.13% | -4.11% |
| AUBANK | 20,99,500 | 1,264.75 | 0.43% | -3.72% |
| ABB | 3,81,000 | 2,100 | 1.70% | -3.54% |
(Increase in price and decrease in open interest)
Short build-up
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| PIIND | 17,78,000 | 2,501.40 | -3.20% | 17.44% |
| GODREJCP | 48,78,500 | 807.55 | -2.05% | 15.51% |
| BERGEPAINT | 31,30,600 | 728.2 | -1.34% | 14.76% |
| BANDHANBNK | 1,83,47,400 | 312.9 | -1.94% | 13.86% |
| ICICIPRULI | 61,73,250 | 512.6 | -2.31% | 13.79% |
(Increase in open interest and decrease in price)
52-week highs
Two stocks in the BSE 500 pack hit 52-week highs: Chalet Hotels and Linde.
52-week lows
As many as 44 stocks hit 52-week lows on the broadest index on the bourse.
| Stock | LTP | 52-week low | Stock | LTP | 52-week low |
| VGUARD | 206.25 | 202.45 | UJJIVANSFB | 17.5 | 17.4 |
| VSTIND | 2,990.95 | 2,970.00 | VAIBHAVGBL | 409.2 | 407 |
| WHIRLPOOL | 1,696.50 | 1,673.65 | ADVENZYMES | 288.85 | 282.7 |
| WOCKPHARMA | 379.85 | 361.4 | AIAENG | 1,772.20 | 1,745.65 |
| IOLCP | 366.4 | 364 | APLLTD | 691.8 | 683.25 |
| JMFINANCIL | 66.65 | 66.35 | ASTRAZEN | 2,653.30 | 2,635.60 |
| JUBLPHARMA | 434.8 | 430.25 | BAYERCROP | 4,386.90 | 4,371.00 |
| LUPIN | 761.05 | 691.7 | CADILAHC | 371.1 | 369.45 |
| MANAPPURAM | 118.95 | 117.3 | CEATLTD | 1,011.80 | 1,005.00 |
| MGL | 762.85 | 757.25 | COCHINSHIP | 307.65 | 305.25 |
| MIDHANI | 171.4 | 170 | CSBBANK | 220.7 | 219.7 |
| MRF | 64,752.80 | 64,600.00 | CUB | 127.65 | 126.2 |
| NAM-INDIA | 304.3 | 302.1 | DBL | 283.9 | 281.95 |
| NCC | 63.7 | 62.5 | DCBBANK | 78.2 | 78.05 |
| NIACL | 126.5 | 126.15 | ENGINERSIN | 63.05 | 62.9 |
| PGHL | 4,584.85 | 4,560.00 | GPPL | 90.1 | 89.05 |
| RALLIS | 242.5 | 240.85 | HATHWAY | 19 | 18.75 |
| RAMCOCEM | 825.15 | 805.45 | HEG | 1,272.60 | 1,263.00 |
| RBA | 117.5 | 108.25 | HUDCO | 34.3 | 34 |
| SEQUENT | 142.15 | 140 | ICICIGI | 1,267.45 | 1,252.80 |
| STLTECH | 194.75 | 189.15 | IGL | 370.7 | 369.4 |
| TASTYBIT | 11,963.85 | 11,917.00 | INDIGOPNTS | 1,771.60 | 1,735.50 |
Volatility index
NSE's India VIX index — which measures the expectation of volatility in the market — rose 3.3 percent to settle at 22.9 on Monday, having jumped as much as 7.2 percent during the session.
(Edited by : Abhishek Jha)
First Published: Feb 21, 2022 6:55 PM IST
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