Indian equity benchmarks halted a four-day winning streak on Wednesday, as weakness in financial and IT shares outweighed strength in oil & gas stocks in a choppy session. Investors globally awaited a key GDP reading from the world's largest economy amid fears of a slowdown.
What do the charts suggest for Dalal Street now?
The Nifty50 has formed a long bull candle on the daily chart after a gap-down start, a second straight day of such a pattern, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
He believes the pause in the 50-scrip index could be a positive indication for the bulls to make a comeback. "Normally, such range movements from close to important resistance levels eventually result in sharp bounces from the lows," he said.
Key support at 15,700
The Nifty is consistently taking support near 15,700 and witnessing profit booking near the 15,900 hurdle, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
"The level of 15,700 would act as sacrosanct support, above which, the index will move up to 15,900. A further upside may also come about that could lift it up to 15,975. However, a slide below 15,700 could continue till the 15,600-15,550 band,” he said.
Here are key things to know about the market ahead of the June 30 session:
SGX Nifty
Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 50.5 points or 0.3 percent to 15,715.5 ahead of the opening on Dalal Street.
Global markets
Equities in other Asian markets began Thursday largely in the red after Wall Street indices finished a choppy session mixed following data that showed the world's largest economy contracted in the quarter ended March. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.7 percent at the last count.
Japan's Nikkei 225 was down one percent and Hong Kong's Hang Seng 0.3 percent. China's Shanghai Composite was up 0.4 percent.
S&P 500 futures were down 0.3 percent. On Wednesday, the S&P 500 edged down 0.1 percent. The Nasdaq Composite ended marginally lower and the Dow Jones rose 0.3 percent.
What to expect on Dalal Street
HDFC Securities' Shetti is of the view that the short-term trend of the Nifty50 is choppy with a negative bias. Rangebound moves could continue in the index for the next 1-2 sessions, he said.
As long as the index stays above 15,700 on a closing basis, it is expected to witness sideways to positive action in the coming sessions, said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas.
"The hourly chart shows that the Nifty is moving up in an upward sloping channel for the last week, suggesting its short-term trajectory is positive and it can test 16,000 in the short term," he said.
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 |
Shetti expects a decisive move above 15,850-15,900 levels to open a sustainable upside for the market, and immediate support around the 15,600-15,650 zone.
FII/DII activity
Call/put open interest
The maximum call open interest is accumulated at the strike price of 16,000, with 2.3 lakh contracts, and the next highest at 16,200, with 1.8 lakh contracts, according to exchange data.
The maximum put open interest is at 15,500, with 1.8 lakh contracts, and 15,700, with 1.6 lakh.
This suggests strong resistance at 16,000 and immediate support at 15,700.
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 |
| ONGC | 30,234,050 | 152.5 | 2.18% | 75.86% |
| TVSMOTOR | 5,959,800 | 824.55 | 1.23% | 28.66% |
| ULTRACEMCO | 1,083,400 | 5,582.90 | 0.26% | 24.18% |
| ABB | 552,000 | 2,289.80 | 0.42% | 24.00% |
| NESTLEIND | 174,800 | 17,480.75 | 0.58% | 21.24% |
Long unwinding
| Stock | Current OI | CMP | Price change | OI change |
| APLLTD | 458,500 | 728.55 | -1.54% | -38.02% |
| UBL | 526,750 | 1,432.55 | -2% | -36.35% |
| APOLLOTYRE | 4,885,000 | 186 | -1.48% | -33.32% |
| IBULHSGFIN | 13,968,600 | 97.7 | -4.68% | -32.78% |
| INTELLECT | 362,250 | 645.05 | -3.26% | -32.30% |
(Decrease in open interest as well as price)
Short covering
| Stock | Current OI | CMP | Price change | OI change |
| ASTRAL | 289,850 | 1,666.70 | 1.90% | -19.26% |
| CUMMINSIND | 526,800 | 1,019.85 | 1.69% | -17.43% |
| RAIN | 2,922,500 | 148.05 | 0.41% | -17.37% |
| SHREECEM | 97,100 | 19,283.60 | 0.67% | -12.85% |
| PAGEIND | 35,610 | 40,751.30 | 1.65% | -12.64% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change | OI change |
| DABUR | 6,931,250 | 500.65 | -2.38% | 43.91% |
| MINDTREE | 1,169,800 | 2,925.30 | -3.43% | 43.05% |
| BATAINDIA | 743,325 | 1,674.95 | -2.57% | 35.66% |
| CIPLA | 3,873,350 | 942.2 | -0.24% | 33.39% |
| ASIANPAINT | 1,917,750 | 2,695.60 | -1.05% | 30.34% |
(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: Jamna Auto and Phoenix Mills.
52-week lows
Nine stocks in the 500-strong index hit 52-week lows:
| BAJAJFINSV | IDBI | PFIZER |
| BIOCON | JCHAC | STARHEALTH |
| CHAMBLFERT | MUTHOOTFIN | WOCKPHARMA |
First Published: Jun 29, 2022 6:24 PM IST
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