Trade setup for July 14: Nifty50 gives up 16,000 and the bears might take it even lower

Indian equity benchmarks reversed initial gains to finish lower for a third straight day on Wednesday. Investors awaited more of corporate earnings from India Inc for domestic cues, after HCL Tech's quarterly margin missed Street estimates.

The short-term trend of the market remains weak, he said.

The 50-scrip index finished below its 50-day simple moving average after long, Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, pointed out.

He is of the view that a fresh pullback rally is possible only after the Nifty crosses 16,000, which could go all the way till 16,100-16,150 levels.

On the other hand, a correction wave is likely to continue up to 15,900-15,850 levels if it trades below the 50-day average or 16,000, he said.

Equities in other Asian markets were largely mixed following a weak session on Wall Street overnight, after data showed inflation in the world's largest economy stayed at a more than 40-year high — fuelling the fear that the Fed may continue with steep rate hikes. MSCI's broadest index of Asia Pacific shares outside Japan was flat at the last count.

Japan's Nikkei 225 was up 0.7 percent, but China's Shanghai Composite down 0.1 percent and Hong Kong's Hang Seng flat.

S&P 500 futures were down 0.2 percent. On Wednesday, the S&P 500 fell 0.5 percent, the Dow Jones 0.7 percent and the Nasdaq Composite 0.2 percent.

Here are five stocks that saw an increase in open interest as well as price: