Indian equity benchmarks lost steam on Tuesday following a pullback of almost three percent in three sessions, as weakness in financial shares offset strength in oil & gas and IT scrips in a choppy session.
What do the charts suggest for Dalal Street now?
The Nifty50 has formed a reasonable positive candle on the daily chart following a gap-down start, suggesting the emergence of buying interest at the lows, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
He sees the possibility of more upside towards the next important resistance level of 16,180.
Crucial support at 15,700-15,600
The 50-scrip index is moving in an upward slowing channel on the hourly chart and can test the the upper line near 16,000, said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas.
"On the downside, 15,700-15,600 will act as a crucial support zone, which will provide cushion on the downside," he said.
Here are key things to know about the market ahead of the June 29 session:
SGX Nifty
Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 211 points or 1.3 percent to 15,631 on Wednesday, suggesting a gap-down opening ahead on Dalal Street.
Global markets
Equities in other Asian markets began Wednesday in the red following a weak session on Wall Street overnight after a weak consumer confidence reading from the world's largest economy hurt investor optimism and fuelled worries over recession. MSCI's broadest index of Asia Pacific shares outside Japan was down one percent at the last count.
Japan's Nikkei 225 and Hong Kong's Hang Seng were down 1.1 percent each, and China's Shanghai Composite was down 0.1 percent.
S&P 500 futures eked out a gain of 0.1 percent. On Tuesday, the S&P 500 tumbled two percent. The Dow Jones fell 1.6 percent and the tech stocks-heavy Nasdaq Composite three percent.
What to expect on Dalal Street
HDFC Securities' Shetti is of the view that choppy moves above 15,800, which has been a significant value area, will signal the chances of a false breakout, and could bring the bears into action. He sees immediate resistance at 15,950.
Important levels to track
The Nifty50 remains about eight percent below its long-term simple moving average.
| Period (No. of sessions) | Simple moving average | |
| Nifty50 | Sensex | |
| 5 | 15,670.3 | 52,631 |
| 10 | 15,568.7 | 52,268.3 |
| 20 | 15,947.5 | 53,524.5 |
| 50 | 16,296.8 | 54,552.2 |
| 100 | 16,727.1 | 55,983.9 |
| 200 | 17,184 | 57,586.9 |
Mohit Nigam, Head-PMS at Hem Securities, identified the following levels:
| Index | Resistance | Support |
| Nifty50 | 16,000 | 15,700 |
| Nifty Bank | 34,250 | 33,250 |
FII/DII activity
Call/put open interest
The maximum call open interest is accumulated at the strike price of 16,000, with 1.9 lakh contracts, and the next highest at 16,300, with 1.8 lakh, according to exchange data.
The maximum put open interest is at 15,000, with 1.6 lakh contracts, and 15,500, with 1.5 lakh contracts.
This suggests strong resistance at 16,000 and immediate support at 15,500.
Long build-up
Here are three stocks that saw an increase in open interest as well as price:
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| ITC | 53,100,800 | 272.4 | 0.61% | 86.95% |
| IDFC | 75,020,000 | 49.75 | 0.40% | 37.98% |
| BANKBARODA | 58,851,000 | 101.65 | 1.19% | 52.40% |
Long unwinding
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| MUTHOOTFIN | 2,579,250 | 992.45 | -0.94% | -68.49% |
| SUNPHARMA | 15,900,500 | 831.7 | -0.73% | -54.61% |
| JUBLFOOD | 4,711,250 | 537.45 | -0.89% | -52.26% |
| ICICIBANK | 43,840,500 | 711 | -0.90% | -51.37% |
| VOLTAS | 2,211,000 | 978.25 | -0.58% | -49.03% |
(Decrease in open interest as well as price)
Short covering
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| PIIND | 1,333,750 | 2,629.90 | 0.78% | -65.38% |
| MPHASIS | 1,005,375 | 2,364 | 1.18% | -61.69% |
| GRANULES | 5,724,150 | 274.05 | 2.33% | -51.99% |
| SIEMENS | 873,950 | 2,384.45 | 0.46% | -49.75% |
| PETRONET | 7,956,000 | 215.5 | 3.18% | -48.83% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| ICICIBANK | 58,350,875 | 713 | -0.38% | 55.99% |
(Decrease in price and increase in open interest)
52-week highs
Two stocks in the BSE 500 universe — the broadest index on the bourse — touched the milestone: Mahindra & Mahindra (M&M) and Phoenix Mills.
52-week lows
Six stocks in the 500-strong index hit 52-week lows: Star Health, Chambal Fertilisers, IDBI Bank, Johnson Controls-Hitachi AC, Muthoot Finance and Wockhardt.
First Published: Jun 28, 2022 10:55 PM IST
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