Indian equity benchmarks continued to rise for a third back-to-back session backed by broad-based gains, amid a drop in crude oil from the recent peak. Planned Russia-Ukraine talks aided risk-on sentiment globally, and preliminary numbers from polls in five states boosted investor morale back home.
The outcome of elections in Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa are likely to set the tone for the 2024 Lok Sabha polls.
What do the charts suggest for Dalal Street now?
The Nifty50 has formed a long negative candle with a lower shadow on the daily chart, suggesting the emergence of profit booking at the highs, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"It has failed to take out crucial resistance at 16,750-16,800 levels. Any dips could find support around 16,500 and 16,200, but a sharp upmove above 16,800-17,000 levels could be a tough task," he said.
15,671 a bottom?
Some sort of profit booking was evident after a sharp recent recovery that pushed the 50-scrip index closer to crucial resistance at 16,750, Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, told CNBCTV18.com.
He expects some consolidation in key indices, and the adjustment in individual stocks to continue. "Any sustainable move above the key hurdle of 16,700-16,750 will confirm Tuesday’s low (15,671) as a bottom," he said.
Here are key things to know about the market before the March 11 session:
SGX Nifty
At 7:35 am on Friday, Singapore Exchange (SGX) Nifty futures -- an early indicator of the Nifty50 index -- were down 58.5 points or 0.4 percent at 16,511.5, suggesting a muted start ahead on Dalal Street.
Global markets
Equities in other Asian markets began Friday in the red after a worse-than-expected reading of inflation in the US stoked fears of rate hikes once again. MCSI's broadest index of Asia Pacific shares outside Japan was down 1.7 percent in early hours.
Japan's Nikkei 225 tanked 2.5 percent and Hong Kong's Hang Seng 2.9 percent. China's Shanghai Composite was down 0.8 percent, South Korea's KOSPI 0.9 percent and Singapore's Straits Times 0.1 percent.
S&P 500 futures were down 0.3 percent.
On Thursday, the three main Wall Street indices finished 0.3-1 percent lower dragged by banking and tech shares. Consumer inflation in the world's largest economy hit a 40-year high. A monetary policy review by the Fed is due next week.
What to expect on Dalal Street
HDFC Securities' Shetti believes the Nifty's short-term trend remains positive. with a possibility of the index testing 16,800-17,000 levels, but fears weakness might emerge from higher levels.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, expects the Nifty50 to face brief consolidation before taking out the stiff barrier of 16,800.
He suggests a 'buy on dips' strategy from a short-term trading perspective. "A minor dip towards key hourly moving averages of 16,400-16,350 can be used as a fresh buying opportunity," he added.
Levels to watch out for
Chavan of Angel One pointed out the following levels:
| Index | Support | Resistance |
| Nifty50 | 16,450, 16,200 | 16,700-16,750 |
| Nifty Bank | 34,000-33,800 | 35,500 |
FII/DII activity
Foreign institutional investors (FIIs) net sold Indian equities worth Rs
1,981.2 crore on Thursday, according to provisional exchange data. However, domestic institutional investors (DIIs) made net purchases worth Rs 945.7 crore.
Call/put open interest
Exchange data shows the maximum call open interest is accumulated at the strike price of 17,000, with 1.4 lakh contracts, and 16,700, with 1.2 lakh contracts. On the other hand, the maximum put open interest is at 16,000, with about 87,350 contracts.
This suggests the Nifty is approaching resistance at 16,700 before the major hurdle of 17,000, and meaningful support comes in at 16,000.
Long build-up
Here are five stocks that saw an increase in open interest as well as price:
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| SHREECEM | 2,17,850 | 22,185.30 | 0.63% | 39.50% |
| ABB | 2,77,750 | 2,152 | 0.43% | 16.74% |
| BERGEPAINT | 48,57,600 | 675.4 | 2.62% | 14.54% |
| ONGC | 2,98,91,400 | 174.15 | 0.52% | 14.17% |
| COLPAL | 20,47,500 | 1,496.15 | 3.30% | 13.93% |
Long unwinding
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| INTELLECT | 5,34,000 | 721.7 | -0.04% | -2.25% |
| PFIZER | 1,00,750 | 4,427.15 | -0.35% | -1.61% |
| MANAPPURAM | 2,40,03,000 | 121 | -0.94% | -0.82% |
| DELTACORP | 1,31,00,800 | 273.2 | -0.24% | -0.70% |
| AUROPHARMA | 1,41,16,500 | 630.75 | -1.10% | -0.43% |
(Decrease in open interest as well as price)
Short-covering
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| ESCORTS | 34,66,650 | 1,668.90 | 6.48% | -2.74% |
| LTTS | 5,31,800 | 4,941.25 | 2.32% | -1.77% |
| PVR | 28,07,079 | 1,674.90 | 1.80% | -1.55% |
| TATAPOWER | 9,06,93,000 | 232.75 | 1.09% | -1.36% |
| HAVELLS | 51,53,500 | 1,124.95 | 2.48% | -1.01% |
(Increase in price and decrease in open interest)
Short build-up
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| COFORGE | 5,56,200 | 4,254.95 | -6.80% | 205.74% |
| GUJGASLTD | 28,40,000 | 510.25 | -4.36% | 27.51% |
| GAIL | 2,58,57,900 | 144.8 | -4.67% | 22.88% |
| BANDHANBNK | 2,44,00,800 | 266.05 | -0.93% | 16.90% |
| COALINDIA | 3,07,86,000 | 179.45 | -3.83% | 14.75% |
(Increase in open interest and decrease in price)
52-week highs
Three stocks in the BSE 500 universe hit 52-week highs: Balrampur Chini, GNFC and Swan Energy.
52-week lows
No stock in the broadest index on the bourse hit a 52-week low.
Fear gauge
The India VIX -- also known as the fear index -- eased 6.9 percent to settle at 25.6 on Thursday. Last month, Russia's move to invade Ukraine had sent the index soaring to a 20-month high of almost 34.
First Published: Mar 10, 2022 8:19 PM IST
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