Technical data

Can bulls get Nifty50 to test 18,000 soon?

India’s equity benchmarks resumed a rise on Friday after three days of losses, as investors applauded the RBI’s status quo on key interest rates and policy stance in its first review of FY23. Widespread gains led by financials, oil, gas and metal stocks helped major indices end the week in positive territory.

All eyes will be on the start of the earnings season, with TCS due to report its financial results for the March quarter on Monday.

What do the charts suggest for Dalal Street now?

The Nifty50 formed a bullish outer bar on the daily chart, and a candle resembling a doji pattern on the weekly timeframe suggesting loss of momentum, according to Gaurav Ratnaparkhi, head of technical research at Sharekhan by BNP Paribas.

“The daily momentum indicator is showing signs of fatigue. The overall structure suggests that a near-term consolidation in the 17,500-18,000 range is expected over the next couple of weeks,” he said. declared.

No big hits are expected in the truncated holiday week ahead, Sameet Chavan, chief technical and derivatives analyst at Angel One, told CNBCTV18.com. The market will remain closed on Thursday and Friday for the holidays.

“Despite some mid-week misfires, we managed to defend key supports and following the phrase ‘all’s well that ends well’, we have to look at the bullish close,” he said.

He expects the upside to be limited to the 18,000-18,100 levels for the week, although he said given how the broader market has been buzzing, one can remain focused outside. of the index.

Here are the key things to know about the market ahead of the April 11 session:

Wall Street indexes ended a choppy session on a mixed note on Friday as investors assessed the economic outlook with the Fed moving to curb inflation. The S&P 500 fell 0.3% and the tech-heavy Nasdaq Composite fell 1.3%. The Dow Jones rose 0.4%. Earlier last week, minutes from the U.S. central bank’s latest policy review showed officials were set to raise interest rates in 50 basis point increments in coming months.

European stocks rallied on Friday, led by financials and commodities stocks. The pan-European Stoxx 600 index rose 1.3%.

What to expect in Dalal Street

Angel One’s Chavan expects a cushion for the index of 50 scripts at 17,600 followed by 17,400 for the week. As long as it maintains these levels at the close, one can continue with a buy on the downside strategy. In contrast, the first sign of strength would be seen after the index breaks through 17,900, he said.

The beach-bound texture is expected to continue in the near term, said Amol Athawale, assistant vice president of technical research at Kotak Securities.

The Nifty50 took support near its 10-day simple moving average, Athawale pointed out. “For the bulls, 17,550 would be the key support zone, above which the index could reach the 17,900-18,000 levels. If the index closes below the 10-day SMA or 17,550, it could reach the 17,400 to 17,300 levels,” he said.

Currently, the Nifty50 holds more than 650 points above its 200-day average. It sits within 65 points of its five-day average.

AMD
5 17,848.5
ten 17,642.3
20 17,345.2
50 17,142.8
100 17,306.1
200 17,131

FII/DII activity

Foreign Institutional Investors (FII) sold Indian shares worth Rs 575 crore on Friday, according to the data. Net sales by domestic institutional investors (DII) amounted to Rs 16.5 crore.

According to preliminary exchange data, the maximum call open interest is accrued at the strike price of 18,500, with 1.7 lakh contracts, and the next highest at 18,000, with over a lakh contract. On the other hand, the maximum open interest to sell is 17,000, with almost 79,000 contracts, and the second highest at 17,600, with almost 74,000 contracts.

This suggests immediate resistance at 18,000 followed by the next hurdle 500 above, and immediate support at 17,600 followed by a strong cushion at 17,000.

Long build up

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

Symbol Current IO CPM Price change (%) Change in OI (%)
IDEA 68,08,20,000 11.2 1.82% 10.70%
ICC 12,04,41,600 269.7 4.49% 10.70%
HDFCBANK 4,78,48,900 269.7 0.10% 8.57%
BANDHANBNK 3,46,98,600 326.05 2.71% 7.99%
SBI 7,02,36,000 519.2 0.26% 3.37%
Symbol Current IO CPM Price change (%) Change in OI (%)
BHEL 3,40,57,500 56.7 -0.09% -1.75%
CNBC 9,75,800 40.5 -1.10% -5.32%
PFCs 1,33,86,000 122.65 -0.16% -2.18%
IBULHSGFIN 15,73,000 173.1 -2.37% -1.96%
LDF 6,930 398.5 -0.99% -1.33%

(Decrease in open interest as well as price)

Short cover

Symbol Current IO CPM Price change (%) Change in OI (%)
BANQUEARODA 10,46,09,700 121.15 1.00% -3.72%
BEAUTIFUL 3,88,01,800 240.1 1.82% -8.41%
ASHOKLEY 3,26,61,000 129.5 2.45% -8.40%
FEDERALLBNK 6,86,30,000 100.5 1.46% -2.65%
GMRINFRA 10,72,57,500 40.5 0.37% -1.28%

(Increase in price and decrease in open interest)

Symbol Current IO CPM Price change (%) Change in OI (%)
RBLBANK 5,38,47,200 128.2 -7.14% 16.33%
NTPC 6,46,09,500 153 -0.65% 4.50%
IDFC 11,23,30,000 62.85 -0.48% 1.91%
IDCFIRSTB 21,97,35,600 42.2 -0.94% 0.45%
MANAPPURAM 3,07,74,000 123.5 -0.56% 2.63%

52 Week Highs

A total of 25 stocks in the BSE 500 pack – the exchange’s broadest index – hit 52-week highs:

ADANIVERT BEAUTIFUL INDHOTEL INDIA
ANGELONE CHOLAFINE ICC MINDACORP
BALRAMCHIN HAL JINDALSTEL SCHAEFFLER
BDL IIFLWAM KEI FRS

No stocks in the BSE 500 hit a 52-week low.

The India VIX – also known as the Fear Index – fell 6.9% to 17.7 on Friday. Russia’s decision to invade Ukraine in late February had sent the VIX to a nearly 34-month high in 20 months.