Indian equity benchmarks made a strong comeback on Friday — following a two-day fall — led by gains across sectors mirroring a surge in global peers after a softer than expected US inflation reading raised hopes the Fed may tone down the frequency and magnitude of hikes in interest rates.
Major central banks have been scrambling to raise benchmark interest rates to tame red-hot inflation amid warnings of at least a mild global recession.
What do the charts suggest for Dalal Street?
The Nifty50 has formed a long bull candle on the daily chart with a huge unfilled opening upside gap, having crossed the key hurdle of 18,150 decisively, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
One may expect more upside in the market in the near term, he said.
Banking index needs more than HDFC Bank boost to rise
"The Nifty Bank bulls managed to take the index past the 42,000 hurdle with major participation from HDFC Bank," said Kunal Shah, Senior Technical Analyst at LKP Securities.
"The banking index will require participation from other counters to go rise towards 43,000-43,500 levels. Lower-end immediate support stands in the 41,700-41,500 zone, which should act as a cushion," he said.
Here are key things to know about the market ahead of the November 14 session:
SGX Nifty
On Monday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — rose as much as 44.5 points or 0.2 percent to 18,480.5 ahead of the opening bell on Dalal Street.
Global markets
Equities in other Asian markets largely began the day in the green, following gains on Wall Street on Friday, with MSCI's broadest index of Asia Pacific shares outside Japan holding up 0.9 percent at the last count. China's Shanghai Composite was up half a percent and Hong Kong's Hang Seng up 1.6 percent, but Japan's Nikkei 225 down 0.7 percent.
S&P 500 futures were down 0.4 percent, suggesting a weak start ahead on Wall Street. On Friday, the three main US indices finished 0.1-1.9 percent higher.
What to expect on Dalal Street
HDFC Securities' Shetti pointed out that the 50-scrip index formed a reasonable bull candle with a long lower shadow on the weekly chart.
"The Nifty decisively crossed above important resistance at 18,150, suggesting further upside," he said. One may expect new all-time high above 18,600 in the near term with immediate support at 18,150, according to Shetti.
| Period (No. of sessions) | Nifty50 | Nifty Bank |
| 5 | 18,342.3 | 42,180.6 |
| 10 | 18,268.6 | 42,032.1 |
| 20 | 18,172.5 | 41,813.7 |
| 50 | 18,130.8 | 41,559.5 |
| 100 | 17,994.8 | 41,388.8 |
| 200 | 17,635.8 | 40,384.9 |
Key levels to watch out for
The maximum call open interest is accumulated at the strike price of 19,000, with 1.9 lakh contracts, and the next highest at 18,500, with almost 99,000 contracts, according to provisional exchange data. The maximum put open interest is at 18,000, with 1.5 lakh contracts, and at 18,300, with 1.2 lakh contracts.
This suggests immediate resistance at 18,500 and a strong base at the 18,000 mark.
FII/DII activity
Foreign institutional investors (FIIs) remained net purchasers of Indian shares for the tenth session in a row on Friday, according to provisional exchange data.
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 (%) |
| PERSISTENT | 499,650 | 3,770 | 2.40% | 19.72% |
| ASHOKLEY | 68,610,000 | 148.45 | 0.75% | 9.50% |
| BANDHANBNK | 48,171,600 | 227.2 | 1.97% | 9.05% |
| ICICIPRULI | 8,007,000 | 492.05 | 0.04% | 7.85% |
| ALKEM | 258,800 | 3,175 | 0.12% | 7.34% |
Long unwinding
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| CUB | 9,920,000 | 190.7 | -0.94% | -8.37% |
| CUMMINSIND | 2,722,800 | 1,347.05 | -0.06% | -8.13% |
| DALBHARAT | 1,517,500 | 1,669.85 | -1.09% | -5.86% |
| BANKBARODA | 93,436,200 | 162.8 | -2.22% | -5.76% |
| EXIDEIND | 26,182,800 | 172.4 | -2.35% | -4.66% |
(Increase in price and decrease in open interest)
Short covering
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| MPHASIS | 2,319,450 | 2,041.75 | 5.47% | -11.87% |
| TATAMOTORS | 66,536,100 | 425.5 | 2.60% | -9.16% |
| DEEPAKNTR | 2,249,000 | 2,104.90 | 2.06% | -8.59% |
| IGL | 9,768,000 | 424.3 | 0.53% | -8.45% |
| INFY | 28,041,300 | 1,581.35 | 4.73% | -8.09% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| GNFC | 5,960,500 | 606.55 | -10.46% | 42.33% |
| EICHERMOT | 3,196,375 | 3,505.05 | -5.07% | 21.74% |
| INDHOTEL | 32,461,562 | 317.1 | -7.01% | 15.41% |
| IPCALAB | 1,683,500 | 863.3 | -3.06% | 13.05% |
| ZYDUSLIFE | 10,533,600 | 430 | -1.41% | 11.69% |
(Decrease in price and increase in open interest)
52-week high
A total of 14 stocks in the BSE 500 universe — the broadest index on the bourse — reached the milestone on Friday:
| ADANIENT | BHARATFORG | ITC |
| AEGISLOG | COCHINSHIP | KALPATPOWR |
| AKZOINDIA | FEDERALBNK | SOLARINDS |
| ALLCARGO | GODFRYPHLP | UNIONBANK |
| BANKBARODA | INDIANB |
52-week low
On the other hand, eight stocks hit 52-week lows:
| BANDHANBNK | NATCOPHARM |
| GLAXO | QUESS |
| JCHAC | SHILPAMED |
| NAM-INDIA | SUDARSCHEM |
First Published: Nov 13, 2022 10:41 PM IST
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