Indian equity benchmarks halted a four-day losing streak on Tuesday, helped by a financial and IT stocks. However, investors globally remained on the back foot tracking news updates on the Russia-Ukraine war.
What do the charts suggest for Dalal Street now?
The Nifty50 has formed a long bull candle on the daily chart to engulf the previous day's doji pattern completely, suggesting a bullish reversal, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"After sharp weakness in the last few sessions, the index has rebounded convincingly to show an upside bounce for the short term," he said.
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Short-term uptrend
The 50-scrip index has managed to close above resistance at 15,900 in a broadly positive sign, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
"The reversal formation is likely to continue as long as the Nifty holds the 15,900-15,850 support zone, above which it has bright chances of hitting 16,150-16,250. The uptrend will be vulnerable below 15,850,” he said.
Here are key things to know about the market before the March 9 session:
SGX Nifty
At 7:34 am on Wednesday, Singapore Exchange (SGX) Nifty futures -- an early indicator of the Nifty index -- were up 79.5 points or 0.5 percent at 16,021, suggesting a positive opening ahead on Dalal Street.
Global markets
Equities in other Asian markets began the day largely in the green as investors assessed the impact of a worsening Russia-Ukraine conflict. Crude oil prices continued to rise after a new US ban on Russian oil and other energy imports. MSCI's broadest index of Asia Pacific shares outside Japan was up half a percent in early hours.
Japan's Nikkei 225 was up 0.6 percent and Singapore's Straits Times one percent. China's Shanghai Composite was flat and Hong Kong's Hang Seng down 0.1 percent.
S&P 500 futures were up 0.4 percent. On Tuesday, the three main Wall Street indices fell 0.3-0.7 percent.
What to expect on Dalal Street
HDFC Securities' Shetti is of the view that the Nifty's near-term negative trend remains intact. One can expect strong resistance at 16,250-16,400 which can be viewed as a sell-on-rise opportunity, he said.
Ruchit Jain, Lead Research at 5paisa.com, expects market choppiness to continue in the near term with wide intraday moves. "Traders can look for stock-specific opportunities as such volatility gives opportunities on both sides. One should avoid aggressive positions," he said.
Levels to watch out for
Mohit Nigam, Head-PMS at Hem Securities, pointed out the following levels:
| Index | Support | Resistance |
| Nifty50 | 15,700 | 16,200 |
| Nifty Bank | 32,400 | 33,800 |
FII/DII activity
Foreign institutional investors (FIIs) net sold Indian equities worth Rs
8,142.6 crore on Tuesday, according to provisional exchange data. However, domestic institutional investors (DIIs) made net purchases worth Rs 6,489.6 crore.
Call/put open interest
Exchange data shows the maximum call open interest is accumulated at 17,000, with 2.2 lakh contracts, and 16,500, with one lakh. On the other hand, the maximum put open interest is at the strike price of 15,000, with one lakh contracts.
This suggests the Nifty faces a major hurdle at 16,500 before Mount 17,000, and meaningful support is more than 1,000 points away at 15,000.
Long build-up
Here are five stocks that saw an increase in open interest as well as price, suggesting build-up of long positions:
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| ATUL | 91,050 | 9,029.25 | 5.73% | 16.06% |
| LTTS | 5,79,200 | 4,870 | 5.32% | 15.75% |
| NTPC | 4,39,07,100 | 132.6 | 2.39% | 14.07% |
| HINDCOPPER | 1,46,45,800 | 126.85 | 4.88% | 12.04% |
| BSOFT | 33,56,600 | 453.05 | 3.48% | 5.62% |
Long unwinding
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| NAVINFLUOR | 4,32,450 | 3,510 | -2.17% | -12.12% |
| MFSL | 15,82,750 | 772.05 | -1.69% | -8.71% |
| INDIGO | 39,01,000 | 1,606 | -6.88% | -5.79% |
| BHARATFORG | 62,51,250 | 618.4 | -2.39% | -5.77% |
| CHOLAFIN | 99,90,000 | 617.95 | -6.19% | -5.56% |
(Decrease in open interest as well as price)
Short-covering
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| HINDALCO | 3,85,49,500 | 593 | 1.27% | -13.32% |
| ONGC | 3,32,02,400 | 176.5 | 8.65% | -12.01% |
| GNFC | 25,87,000 | 608.95 | 1.48% | -10.50% |
| BATAINDIA | 15,54,300 | 1,728.50 | 0.08% | -9.13% |
| ITC | 14,18,52,800 | 227 | 0.69% | -8.69% |
(Increase in price and decrease in open interest)
Short build-up
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| JKCEMENT | 3,24,275 | 2,189 | -16.49% | 41.82% |
| MCX | 16,35,900 | 1,245 | -1.83% | 20.95% |
| MOTHERSUMI | 2,56,79,500 | 126.75 | -7.35% | 19.59% |
| GSPL | 13,22,600 | 268.2 | -4.45% | 13.75% |
| ICICIBANK | 12,20,71,100 | 664.1 | -3.73% | 10.46% |
(Increase in open interest and decrease in price)
52-week highs
Two stocks in the BSE 500 universe hit 52-week highs: ONGC and PowerGrid.
52-week lows
A total of 27 stocks on the BSE 500 hit 52-week lows, including HDFC Bank, HDFC, HDFC Life, Hindustan Unilever, Mahindra & Mahindra, Hero MotoCorp, Ashok Leyland, Britannia, UltraTech, Shriram Transport Finance, Ramco Cements and Thyrocare.
Fear gauge
The India VIX -- known in market parlance as the fear index -- eased 2.5 percent to settle at 28.6 on Tuesday. Last month, Russia's move to invade Ukraine had sent the index soaring to a 20-month high.
(Edited by : Abhishek Jha)
First Published: Mar 8, 2022 7:12 PM IST
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