Indian equity benchmarks managed to hold on to the green on Friday after the RBI announced a third straight hike in the COVID-era interest rate benchmark. Gains in IT and financial stocks helped the headline indices stay afloat, though losses in oil & gas shares capped the upside.
The RBI's increase in the
repo rate — or the key interest rate at which it lends money to commercial banks — was bigger than what most economists had estimated.
What do the charts suggest for Dalal Street?
The
Nifty50 has formed a small negative candle on the daily chart with minor upper and lower shadows, reflecting rangebound action in the market, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
He expects the benchmark to take a breather before regaining momentum.
More of sideways action ahead?
One can expect consolidation to continue this wee, Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, told CNBCTV18.com.
"Some tentativeness may continue in the market at higher levels till the Nifty50 crosses a sturdy wall in the 17,500-17,650 zone convincingly... On the flipside, sacrosanct support lies at 17,300 followed by 17,150," said Chavan, advising traders to avoid aggressive bets for a while.
Here are key things to know about the market ahead of the August 8 session:
On Monday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 82 points or 0.5 percent to 17,341.5, suggesting a lower start ahead on Dalal Street.
Equities in other Asian markets began the week on a largely negative note, following a mixed session on Wall Street. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.6 percent in early hours.
Japan's Nikkei 225 was down 0.6 percent and Hong Kong's Hang Seng one percent, and China's Shanghai Composite was flat.
S&P 500 futures edged 0.1 percent lower. On Friday, Wall Street indices were a mixed bag, as weakness in Tesla and other tech-related stocks countered optimism that the Fed might let up its aggressive campaign to tackle high inflation.
What to expect on Dalal Street
HDFC Securities' Shetti believes the Nifty50 is likely to remain choppy with high levels of volatility in the short term.
"As long as it stays below the hurdle of 17,500, there is a possibility of muted movement... A sustainable move above this level could open the next upside targets of 17,800-17,900 in the near term, with immediate support at 17,200," he said.
Important levels to track
The Nifty50 is more than five percent above its long-term simple moving average.
Period (No. of sessions) | SMA |
Nifty50 | Nifty Bank |
5 | 17,401.7 | 37,951.2 |
10 | 17,409.7 | 37,922.4 |
20 | 17,372.7 | 37,882 |
50 | 17,264.1 | 37,774.8 |
100 | 16,936.2 | 37,170.3 |
200 | 16,500.2 | 36,004 |
FII/DII activity
Call/put open interest
The maximum call open interest is accumulated at the strike price of 18,000, with 1.3 lakh contracts, and the next highest at 17,500, with 1.2 lakh, according to exchange data. On the other hand, the maximum put open interest is at 17,000, with 80,000 contracts, and 17,300, with nearly 58,000 contracts.
This suggests immediate resistance at 17,500 and immediate support at 17,300.
Here are five stocks that saw an increase in open interest as well as price:
Stock | Current OI | CMP | Price change (%) | OI change (%) |
JKCEMENT | 401,000 | 2,627.80 | 3.05% | 14.15% |
ICICIPRULI | 6,604,500 | 576.25 | 2.45% | 11.45% |
PEL | 4,348,575 | 1,738 | 0.14% | 7.90% |
GODREJCP | 6,107,000 | 877.2 | 2.21% | 7.60% |
NTPC | 55,689,000 | 153.75 | 1.12% | 7.23% |
Long unwinding
Stock | Current OI | CMP | Price change (%) | OI change (%) |
BEL | 27,778,000 | 274.5 | -3.09% | -12.33% |
GUJGASLTD | 5,298,750 | 433.7 | -0.17% | -4.86% |
BOSCHLTD | 170,250 | 17,417.50 | -1.08% | -4.85% |
IPCALAB | 852,150 | 1,012.05 | -1.29% | -4.58% |
BSOFT | 4,871,100 | 347 | -1.39% | -4.40% |
(Increase in price and decrease in open interest)
Stock | Current OI | CMP | Price change (%) | OI change (%) |
NAM-INDIA | 2,731,200 | 300.2 | 0.18% | -8.26% |
ASTRAL | 693,550 | 1,990 | 0.92% | -7.38% |
MUTHOOTFIN | 4,848,750 | 1,148 | 3.71% | -7.22% |
ALKEM | 442,400 | 3,121 | 0.17% | -6.92% |
POWERGRID | 31,004,100 | 221.85 | 1.32% | -6.02% |
(Increase in price and decrease in open interest)
Stock | Current OI | CMP | Price change (%) | OI change (%) |
GAIL | 30,951,400 | 133.15 | -5.13% | 41.27% |
CROMPTON | 2,907,000 | 377 | -2.48% | 28.12% |
BALKRISIND | 1,441,800 | 2,160.05 | -6.95% | 24.05% |
BALRAMCHIN | 7,708,800 | 353.5 | -3.39% | 21.79% |
DELTACORP | 16,672,700 | 195.6 | -0.18% | 8.33% |
(Decrease in price and increase in open interest)
First Published: Aug 7, 2022 8:39 PM IST