Indian equity benchmarks finished a volatile session barely in the green on Tuesday, as gains in heavyweights such as Hindustan Unilever, Asian Paints and SBI were offset by losses in the HDFC twins and Infosys. Investors awaited the outcome of a bi-monthly review by the RBI's interest rate-setting panel due by the end of the week.
Nervousness persisted in equities around the world amid reignited fears of a global recession.
What do the charts suggest for Dalal Street?
The Nifty50 has formed a small positive candle on the daily chart with upper and lower shadows, and one may expect some correction in the short term, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"Technically, this pattern indicates the formation of a high wave type pattern at the hurdle of 17,400," he said.
Brace for profit booking in banking
The Nifty Bank has failed to take out 38,000 on a closing basis, already in oversold territory on the short-term timeframe, said Kunal Shah, Senior Technical Analyst at LKP Securities.
He believes some profit booking cannot be ruled out in the banking index. "Volatility is likely to increase ahead of the RBI policy (outcome) and one should keep a buy-on-dip approach with immediate support at 37,400," he said.
Here are key things to know about the market ahead of the August 3 session:
SGX Nifty
On Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — rose as much as 57 points or 0.3 percent to 17,383 ahead of the opening bell on Dalal Street.
Global markets
Equities in other Asian markets began the day with cautious gains following a weak session on Wall Street overnight, with geopolitical tensions flaring after US House of Representatives Speaker Nancy Pelosi visited Taiwan. MSCI's broadest index of Asia Pacific shares outside Japan was up 0.3 percent at the last count.
Japan's Nikkei 225 was up 0.5 percent, and China's Shanghai Composite and Hong Kong's Hang Seng up 0.3 percent each.
S&P 500 futures edged up 0.1 percent. On Tuesday, the S&P 500 finished a choppy session down 0.7 percent. The Dow Jones fell 1.2 percent and the Nasdaq Composite 0.2 percent.
What to expect on Dalal Street
HDFC Securities' Shetti is of the view that correction or consolidation is on the cards for the Nfity50 in the next 1-2 sessions before another bounce from the lows.
Important levels to track
The Nifty50 stands more than six percent above its long-term simple moving average, in a bullish signal. For the banking index, this gap is wider, at seven percent.
| Period (No. of sessions) | SMA | |
| Nifty50 | Nifty Bank | |
| 5 | 17,311.5 | 37,983.5 |
| 10 | 17,305.7 | 37,903.5 |
| 20 | 17,260.4 | 37,762.3 |
| 50 | 16,931.9 | 37,233.8 |
| 100 | 16,690.1 | 36,558.8 |
| 200 | 16,323.3 | 35,464.3 |
Shetti sees immediate support at 17,150 and crucial resistance around 17,400.
FII/DII activity
Call/put open interest
The maximum call open interest is accumulated at the strike price of 17,500, with 1.5 lakh contracts, and the next highest at 17,600 and 17,800, with 1.2 lakh each, according to exchange data. On the other hand, the maximum put open interest is at 17,200, with 1.7 lakh contracts, and 16,500, with 1.6 lakh.
This suggests a major hurdle at 17,500 and strong support at 17,200.
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 |
| EICHERMOT | 2,988,300 | 3,108 | 0.68% | 19.54% |
| AUBANK | 6,300,000 | 616.35 | 2.46% | 19.29% |
| CONCOR | 3,431,000 | 722.65 | 1.53% | 19.00% |
| BOSCHLTD | 149,900 | 17,871 | 0.60% | 15.68% |
| AMBUJACEM | 41,148,000 | 380.75 | 0.73% | 14.50% |
Long unwinding
| Stock | Current OI | CMP | Price change | OI change |
| BSOFT | 4,646,200 | 334.65 | -2.89% | -2.74% |
| PERSISTENT | 677,250 | 3,621 | -1.42% | -2.55% |
| MFSL | 1,655,550 | 848.95 | -3.58% | -2.51% |
| DALBHARAT | 1,066,000 | 1,588.15 | -0.60% | -2.30% |
| UBL | 1,196,800 | 1,600.50 | -0.58% | -2.04% |
(Increase in price and decrease in open interest)
Short covering
| Stock | Current OI | CMP | Price change | OI change |
| CANBK | 40,572,900 | 233.3 | 3.02% | -2.87% |
| CHOLAFIN | 8,106,250 | 746.65 | 1.15% | -2.41% |
| IOC | 67,645,500 | 69.9 | 1.16% | -1.50% |
| POLYCAB | 1,072,500 | 2,366.50 | 0.51% | -1.40% |
| M&M | 11,184,600 | 1,255.05 | 0.84% | -1.40% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change | OI change |
| FSL | 16,541,200 | 103.75 | -5.21% | 37.54% |
| SYNGENE | 1,719,000 | 557.4 | -2.93% | 32.23% |
| INDUSTOWER | 11,734,800 | 219.7 | -3.53% | 13.96% |
| GAIL | 26,663,100 | 142.25 | -3.82% | 12.95% |
| GODREJPROP | 3,395,600 | 1,462.35 | -3.65% | 11.66% |
(Decrease in price and increase in open interest)
52-week highs
A total of 20 stocks on the BSE 500 — the broadest index on the bourse —touched the milestone:
| ADANIENT | BANKBARODA | FEDERALBNK | ITC |
| ADANITRANS | BLUEDART | GESHIP | JKPAPER |
| AIAENG | COALINDIA | HAL | M&M |
| ASTERDM | DEEPAKFERT | INDHOTEL | MARUTI |
| ATGL | ELGIEQUIP | INOXLEISUR | METROBRAND |
52-week lows
No stock in the 500-scrip pack hit a 52-week low.
First Published: Aug 2, 2022 7:27 PM IST
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