Indian equity benchmarks scaled fresh four-month closing peaks on Tuesday, as Dalal Street returned to trade after a long weekend, with the Nifty50 finishing higher for the sixth session in a row.
Gains in financial, auto and oil & gas shares were the biggest boosts for both headline indices.
What do the charts suggest for Dalal Street?
The Nifty50 held on to a higher bottom formation on the intraday chart, with 17,750 being a trend-deciding level, according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
"Moderating domestic inflation has raised expectations that the central bank may slow down with hikes in interest rates going ahead. Strong FII fund infusion has certainly bolstered investor sentiment," he said.
Nifty Bank headed higher
"The Nifty Bank has formed a doji candle on the daily chart, suggesting indecisiveness. It is showing signs of exhaustion after a stupendous rally though a profit booking scenario will be confirmed only once it closes below 38,700," said Kunal Shah, Senior Technical Analyst at LKP Securities.
A move beyond 39,500 on a closing basis will lead to a rally towards the 40,000-41,000 band, he said.
Here are key things to know about the market ahead of the August 17 session:
SGX Nifty
On Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — rose as much as 39 points or 0.2 percent to touch 17,895 ahead of the opening bell on Dalal Street.
Global markets
Equities in other Asian markets were a mixed bag on Wednesday mirroring Wall Street, with MSCI's broadest index of Asia Pacific shares outside Japan trading flat at the last count.
Japan's Nikkei 225 was up 0.8 percent and Hong Kong's Hang Seng barely up but China's Shanghai Composite down 0.3 percent.
S&P 500 futures were flat. On Tuesday, the S&P 500 rose 0.2 percent and the Dow Jones 0.7 percent, but the tech stocks-heavy Nasdaq Composite declined 0.2 percent.
What to expect on Dalal Street
Kotak Securities' Chouhan believes as long as the 50-scrip index holds the 17,750 level, it could go on to reach the 17,900-17,925 zone on the upside.
"If the index trades below 17,750, a quick intraday correction is possible where it could retest 17,700-17,650 levels," he warned.
Key levels to watch out for
In a bullish sign, both the Nifty50 and the Nifty Bank remain about six percent above their long-term simple moving averages.
| Period (No. of sessions) | SMA | |
| Nifty50 | Nifty Bank | |
| 5 | 17,809.3 | 39,228.8 |
| 10 | 17,788 | 39,227.3 |
| 20 | 17,727.1 | 39,065.6 |
| 50 | 17,589.5 | 38,549.7 |
| 100 | 17,355.5 | 38,078.2 |
| 200 | 16,834.1 | 36,872.3 |
Mohit Nigam, Head-PMS at Hem Securities, identified the following support and resistance levels:
| Index | Support | Resistance |
| Nifty50 | 17,700 | 18,050 |
| Nifty Bank | 39,000 | 39,500 |
FII/DII activity
Call/put open interest
The maximum call open interest is accumulated at the strike price of 18,000, with 1.5 lakh contracts, and the next highest at 18,500, with more than 85,000 contracts. according to exchange data. On the other hand, the maximum put open interest is at 17,700, with 1.3 lakh contracts, and at 17,500 and 17,800, with 1.1 lakh each.
This suggests strong resistance at the 18,000 mark and immediate support at 17,800 followed by a strong base at 17,700.
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 |
| APOLLOTYRE | 11,928,000 | 251.2 | 6.01% | 18.96% |
| GODREJCP | 6,509,000 | 893.05 | 2.83% | 18.74% |
| ASTRAL | 634,700 | 1,998 | 0.32% | 18.24% |
| NAM-INDIA | 2,302,400 | 315 | 2.34% | 14.04% |
| AMBUJACEM | 52,034,400 | 399.3 | 3.19% | 10.23% |
Long unwinding
| Stock | Current OI | CMP | Price change | OI change |
| JKCEMENT | 523,750 | 2,657.25 | -0.08% | -7.06% |
| PFC | 35,408,200 | 120.3 | -0.70% | -1.68% |
| BANKBARODA | 98,402,850 | 122.15 | -0.89% | -1.31% |
| CHAMBLFERT | 7,680,000 | 339.8 | -0.41% | -1.21% |
| SUNPHARMA | 20,193,600 | 912.95 | -0.05% | -1.15% |
(Increase in price and decrease in open interest)
Short covering
| Stock | Current OI | CMP | Price change | OI change |
| HONAUT | 13,515 | 42,760.35 | 7.08% | -12.99% |
| TATACHEM | 8,498,000 | 1,123.95 | 0.05% | -6.67% |
| FSL | 16,853,200 | 106.8 | 1.23% | -6.08% |
| MOTHERSON | 41,449,500 | 128.55 | 4.34% | -5.19% |
| ESCORTS | 2,383,700 | 1,847.05 | 10.27% | -5.19% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change | OI change |
| MUTHOOTFIN | 5,165,250 | 1,044.45 | -12.44% | 51.89% |
| METROPOLIS | 792,000 | 1,447.50 | -2.75% | 12.27% |
| PVR | 2,652,012 | 1,992 | -1.48% | 7.66% |
| HINDALCO | 26,864,250 | 429 | -1.91% | 6.39% |
| GUJGASLTD | 4,946,250 | 476.5 | -0.01% | 6.24% |
(Decrease in price and increase in open interest)
52-week highs
A total of 32 stocks in the BSE 500 universe — the broadest index on the bourse — scaled 52-week highs:
| ABB | BANKBARODA | HAL | SIEMENS |
| ADANIENT | BEL | ICICIBANK | SKFINDIA |
| ADANIPOWER | CHALET | JKPAPER | SOLARINDS |
| ADANITRANS | CHOLAFIN | KSB | TATAELXSI |
| APLAPOLLO | DEVYANI | M&M | TRENT |
| APOLLOTYRE | EICHERMOT | METROBRAND | TVSMOTOR |
| ATGL | FLUOROCHEM | MHRIL | VBL |
| BAJAJ-AUTO* | GRINDWELL | SBILIFE | ZFCVINDIA |
52-week lows
No stock in the 500-scrip basket hit a 52-week low.
First Published: Aug 16, 2022 5:12 PM IST
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