Indian equity benchmarks halted a two-day winning run on Wednesday, amid nervousness across global markets as investors awaited the outcome of two-day FOMC deliberations.
Later in the day, the Fed announced a widely-expected hike of 75 basis points in the key interest rates and Chair Jerome Powell vowed to "keep at" the battle to beat down inflation, saying there is no painless way to bring down the pace of rising consumer prices.
What do the charts suggest for Dalal Street?
The Nifty50 has formed a small negative candle on the daily chart with minor upper and lower shadows, reflecting consolidation in the market, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
One can expect the 50-scrip index to remain choppy in the short term, he said.
A breakout awaited in banking index
"The Nifty Bank appears to be stuck within a broad range between 40,500 and 42,000, and a break on either side will decide the trend," said Kunal Shah, Senior Technical Analyst at LKP Securities.
Here are key things to know about the market ahead of the September 22 session:
SGX Nifty
On Thursday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 163 points or 0.9 percent to 17,553 ahead of the opening bell on Dalal Street.
Global markets
Equities in other Asian markets began the day deep in the red, tracking overnight losses on Wall Street after the US central bank lifted the rate to 3-3.25 percent range and Powell said there is no painless way to bring down inflation. MSCI's broadest index of Asia Pacific shares outside Japan was down 1.4 percent at the last count.
Japan's Nikkei 225 was down one percent, China's Shanghai Composite 0.3 percent and Hong Kong's Hang Seng 1.9 percent.
S&P 500 futures were down 0.7 percent. On Wednesday, the S&P 500 and the Dow Jones finished 1.7 percent lower each, and the Nasdaq Composite dropped 1.8 percent.
What to expect on Dalal Street?
HDFC Securities' Shetti is of the view that the Nifty50 will continue to be in a range of 17,500-18,100 for the next few sessions.
"Any decisive move beyond this range could lead to acceleration in momentum on either side," he said.
Key moving averages
Wednesday's fall pulled the Nifty50 below all six of its main simple moving averages, in a bearish sign.
| Period (No. of sessions) | SMA |
| 5 | 17,720.3 |
| 10 | 17,762.1 |
| 20 | 17,764 |
| 50 | 17,805.8 |
| 100 | 17,800.3 |
| 200 | 17,718.7 |
Rupak De, Senior Technical Analyst at LKP Securities, believes the trend may remain sideways to positive as long as the index stays above 17,700 on a closing basis. However, a decisive fall below the support level may trigger a correction, he warned.
FII/DII activity
Foreign institutional investors (FIIs) turned net sellers of Indian shares on Wednesday following two days of buying.
In August, they made net purchases to the tune of Rs 22,025.8 crore — the first month of net inflows after 10 straight months of outflows, whereas domestic institutional investors (DIIs) net sold shares worth Rs 7,068.9 crore.
ALSO READ: 'Chakravyuh' moment in Indian market
Call/put open interest
The maximum call open interest is accumulated at the strike price of 18,000, with 1.7 lakh contracts, and the next highest at 18,200, with 1.5 lakh, according to exchange data. On the other hand, the maximum put open interest is at 17,500 and 17,000, with 1.1 lakh contracts each, and at 17,100, with more than 77,000.
This suggests a tough hurdle at 18,000 and a strong base at 17,500.
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 |
| CUB | 7,515,000 | 186.85 | 0.84% | 19.10% |
| HONAUT | 15,105 | 41,328.35 | 1.15% | 13.60% |
| CUMMINSIND | 3,238,200 | 1,254.45 | 1.67% | 10.60% |
| GUJGASLTD | 5,456,250 | 498.15 | 0.72% | 8.59% |
| MARICO | 7,218,000 | 536.65 | 1.67% | 5.40% |
Long unwinding
| Stock | Current OI | CMP | Price change | OI change |
| TVSMOTOR | 7,320,600 | 1,071.70 | -0.93% | -4.80% |
| ACC | 4,565,500 | 2,538 | -7.01% | -4.24% |
| INDIACEM | 12,504,800 | 276 | -2.54% | -3.76% |
| ASTRAL | 1,175,075 | 2,363.50 | -1.83% | -3.53% |
| BANDHANBNK | 26,742,600 | 287.9 | -2.21% | -3.52% |
(Increase in price and decrease in open interest)
Short covering
| Stock | Current OI | CMP | Price change | OI change |
| LTTS | 901,400 | 3,449 | 1.16% | -2.33% |
| RBLBANK | 53,395,000 | 127.9 | 0.16% | -1.56% |
| METROPOLIS | 966,900 | 1,371.05 | 1.02% | -1.49% |
| LALPATHLAB | 1,231,750 | 2,372 | 2.07% | -1.46% |
| BATAINDIA | 2,249,225 | 1,881.55 | 1.13% | -1.41% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change | OI change |
| CANFINHOME | 4,713,150 | 552.8 | -2.58% | 16.05% |
| MGL | 2,902,400 | 858.3 | -1.48% | 10.47% |
| WIPRO | 34,022,000 | 401.5 | -0.88% | 8.26% |
| INDUSTOWER | 13,426,000 | 197.45 | -1.45% | 7.72% |
| CIPLA | 7,915,700 | 1,067.05 | -1.73% | 6.53% |
(Decrease in price and increase in open interest)
52-week highs
A total of 17 stocks in the BSE 500 universe — the broadest index on the bourse — hit 52-week highs.
| ABFRL | EICHERMOT | RHIM |
| BHARTIARTL | FLUOROCHEM | TRITURBINE |
| CHALET | ITC | TVSMOTOR |
| CIPLA | PAGEIND | VBL |
| COCHINSHIP | PATANJALI | WELCORP |
| CUB | RATNAMANI |
52-week lows
On the flipside, four stocks hit the trough: Gland Pharma, IEX, Sanofi and Sona BLW.
First Published: Sept 21, 2022 7:14 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Supreme Court says it may consider interim bail for Arvind Kejriwal due to ongoing Lok Sabha polls
May 3, 2024 4:57 PM
10% discount on fare on Mumbai Metro lines 2 and 7A on May 20
May 3, 2024 2:40 PM