Indian equity benchmarks scaled their highest closing levels in four months on Monday as Dalal Street began a holiday-shortened trading week. The Nifty50 settled above the 17,500 mark for the first time since April 12.
The market will resume trading on Wednesday after a day's holiday for Muharram.
What do the charts suggest for Dalal Street?
The Nifty50 has formed a long bull candle on the daily chart, and is placed at the upper end of its short-term range of 17,200-17,500, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The breakout of the 17,500-17,550 band is a positive sign and suggests more upside in the short term, he pointed out.
Here are key things to know about the market ahead of the August 10 session:
SGX Nifty
On Wednesday, Singapore Exchange (SGX) Nifty futures fell as much as 45 points or 0.3 percent to 17,495.5, suggesting a lower opening ahead on Dalal Street.
Global markets
Equities in other Asian markets dropped as investors waited for a key US inflation reading to assess the course of hikes in COVID-era interest rates by the Fed. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.6 percent at the last count.
Japan's Nikkei was down 0.7 percent and Hong Kong's Hang Seng down 0.9 percent. China's Shanghai Composite was flat.
S&P 500 futures were flat. On Tuesday, the three main US indices finished in the red following a dismal forecast from Micron that triggered selling pressure in tech stocks. The S&P 500 fell 0.4 percent, the Dow Jones 0.2 percent and the Nasdaq Composite 1.2 percent.
What to expect on Dalal Street
One can expect key support for the Nifty50 at 17,400, a level above which the breakout formation may continue all the way till the 17,650-17,700 zone, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
However, a fall below 17,400 could go all the way up to 17,325-17,300, he said.
Important levels to track
The Nifty50 remains above six key simple moving averages, in a bullish sign.
| Period (No. of sessions) | SMA | |
| Nifty50 | Sensex | |
| 5 | 17,524.1 | 58,853 |
| 10 | 17,475.1 | 58,772.3 |
| 20 | 17,434.3 | 58,606.9 |
| 50 | 17,342.6 | 58,328.8 |
| 100 | 17,012.8 | 57,481.7 |
| 200 | 16,569.8 | 56,071.6 |
Mohit Nigam, Head-PMS at Hem Securities, suggested the following levels for Wednesday's session:
| Index | Support | Resistance |
| Nifty50 | 17,200 | 17,600 |
| Nifty Bank | 37,750 | 38,200 |
FII/DII activity
Call/put open interest
The maximum call open interest is accumulated at the strike price of 18,000, with 1.7 lakh contracts, and the next highest at 18,500, with 1.1 lakh, according to exchange data. On the other hand, the maximum put open interest is at 17,400, with 1.4 lakh contracts, and 16,500, with 1.3 lakh.
This suggests immediate resistance at the 18,000 mark and immediate support at 17,400.
Long build-up
Here are five stocks that saw an increase in open interest as well as price:
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| INDIACEM | 9,526,500 | 195.5 | 2.33% | 14.43% |
| HINDCOPPER | 11,055,300 | 111.6 | 6.64% | 12.95% |
| TATACHEM | 4,781,000 | 964.5 | 1.14% | 10.19% |
| COALINDIA | 32,197,200 | 213.25 | 3.72% | 10.16% |
| NTPC | 59,713,200 | 157.15 | 2.38% | 5.57% |
Long unwinding
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| HINDPETRO | 23,195,700 | 239.7 | -4.62% | -12.51% |
| INDIAMART | 272,700 | 4,489.55 | -2.04% | -9.41% |
| MANAPPURAM | 27,600,000 | 107.15 | -0.83% | -5.07% |
| ABFRL | 12,472,200 | 277.5 | -0.52% | -4.61% |
| INDIGO | 2,535,000 | 2,077.55 | -0.66% | -4.30% |
(Increase in price and decrease in open interest)
Short covering
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| DRREDDY | 2,413,875 | 4,229.95 | 1.25% | -6.20% |
| BALRAMCHIN | 9,388,800 | 354 | 0.70% | -6.05% |
| NAM-INDIA | 2,505,600 | 303.5 | 1.02% | -5.81% |
| VOLTAS | 4,024,000 | 984.75 | 1.43% | -5.45% |
| BAJAJ-AUTO | 1,908,000 | 4,031.25 | 0.74% | -5.21% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| ALKEM | 411,800 | 2,943.05 | -5.84% | 12.24% |
| BALKRISIND | 1,788,600 | 2,157.85 | -0.18% | 8.20% |
| FSL | 17,347,200 | 103.15 | -2.27% | 5.52% |
| ABBOTINDIA | 37,040 | 20,410 | -0.68% | 5.51% |
| MFSL | 1,557,400 | 793.95 | -3.59% | 5.34% |
(Decrease in price and increase in open interest)
52-week highs
A total of 15 stocks in the BSE 500 universe — the broadest index on the bourse — scaled 52-week peaks.
| ADANIENT | JYOTHYLAB | SIEMENS |
| AEGISLOG | LEMONTREE | SOLARINDS |
| ATGL | M&M | TATAELXSI |
| GRINDWELL | METROBRAND | TVSMOTOR |
| HAL | PHOENIXLTD | ZFCVINDIA |
52-week lows
On the flipside, two stocks in the 500-scrip basket hit 52-week lows: Zensar Tech and Alembic Pharma.
First Published: Aug 9, 2022 6:28 PM IST
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