Technical data

No more drawbacks on the cards for Nifty50? Discover the main market indices ahead of Monday’s session


Indian stock indices fell 1.5% to more than a week lower from Friday’s closing, dragged down by losses across all sectors except computer stocks. Financials, autos, oil and gas, and metals were the hardest hit.

Bank Nifty lost 2.5%, extending losses to a fifth consecutive session.

What do the charts suggest for Dalal Street now?

The Nifty50 formed a long bearish candle on the daily chart, suggesting a strong downward reversal after the early month rebound, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

We can expect further weakness in the near term, he said.

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All eyes on Bank Nifty

The next two sessions will be crucial for the 50 scripts index, said Sameet Chavan, chief technical and derivatives analyst at Angel One. He said he wouldn’t be surprised if the Nifty tests 16,500-16,200 levels, which is the best possible area from which a recovery can occur. The banking space is likely to dictate the short-term trend of how it is placed, he said.

“Traders are advised to remain discreet about positions and even if the market tries to recover, aggressive buying should be avoided until 17,700 is not breached. Before that, the 17,100 through 17 levels 200 should be seen as immediate obstacles, ”Chavan added.

Here are the key things to know about the market ahead of Monday’s session:

SGX owl

At 7:49 a.m. on Monday, Singapore Stock Exchange (SGX) Nifty futures – an early indicator of the Nifty50 index – were down 83.5 points or 0.5% to 16,935.5, suggesting a negative start coming on Dalal Street.

Global markets

Asian stock markets fell on Monday as the surge in Omicron cases triggered tighter restrictions in Europe. The largest MSCI index of Asia-Pacific stocks outside of Japan was down 0.8% in the early hours. Japan’s Nikkei 225 index fell 1.7%, the Shanghai Composite 0.5% and the Hong Kong Hang Seng index 0.7%.

S&P 500 futures fell 0.9% in Asia.

All three of Wall Street’s major indices fell on Friday, although gains in tech stocks provided some support, limiting the loss of the Nasdaq Composite to 0.1%. The S&P 500 and the Dow Jones ended down 1% and 1.5% respectively.

What to expect on Dalal Street

A bearish continuation pattern appears on the weekly chart, according to Shetti of HDFC Securities. The Nifty can be expected to drop to 16,750 and even lower levels this week, with immediate resistance at 17,180, he said.

“The Nifty50 Index broke the 61.8% retracement of the recent upside leg as well as the lower end of a bullish channel on the hourly chart. This shows that the short-term range has shifted down, ”said Gaurav Ratnaparkhi, technical manager. Research at Sharekhan by BNP Paribas.

Ratnaparkhi expects 16,780-17,400 to be the near-term range for the index, with buy support near the recent low of 16,782.

Key levels to watch

clever50: Index support is expected at 16,900 and resistance at 17,300, according to Choice Broking’s Palak Kothari.

Smart bank: For the banking index, Kothari sees support at 35,300 and resistance at 36,600.

Foreign Institutional Investors (FIIs) on Friday offloaded Indian stocks worth Rs 2,069.9 crore. However, domestic institutional investors made net purchases of Rs 1,478.5 crore, according to provisional exchange data.

Maximum open call interest is accrued at the strike price of 18,000, with contracts of 1.5 lakh, and the second highest at 17,300, with contracts of 1.1 lakh. Maximum open interest on puts is at 17,000, with over 74,000 contracts, and the second highest at 16,500, with nearly 55,000 contracts, according to exchange data.

This suggests immediate resistance at 17,300 and support at 16,500.

Here are five stocks that saw an increase in open interest as well as price, suggesting an accumulation of long positions:

symbol Current OI CMP Price change (%) Change of IO (%)
Persistent 4,350 4,712.50 4.26% 26.09%
Wipro 1 22 400 675.95 3.75% 11.68%
Infosys 49.65.300 50.2 2.81% 35.20%
Birlasoft 27,300 10:45 a.m. 2.06% 5.00%
LTI 5,400 132.5 1.92% 28.57%

Long process

symbol Current OI CMP Price change (%) Change of IO (%)
Idea 64,26,00,000 14.15 -4.07% -2.27%
Tata Engines 7.81.12.800 471.75 -4.34% -5.97%
ICICI Bank 8,28,53,375 730.95 -1.83% -5.45%
GMR Infra 13,26,37,500 41.5 -3.15% -3.31%
NAVIGATE 14,42,43,250 112.5 -1.40% -2.94%

Short cover

symbol Current OI CMP Price change (%) Change of IO (%)
Sun Pharma 3,30,56,100 769.85 0.53% -5.26%
HCL technology 1,99,35,300 1,173.85 0.80% -6.05%
Electrical network 1 83 34 854 203.4 0.57% -1.55%
Mphasis 14 94 025 3,265.05 1.27% -2.87%
Coforge 7 31 700 5,390.00 0.15% -5.68%

Short construction

symbol Current OI CMP Price change (%) Change of IO (%)
Housing Indiabulls 1 43 ​​40 600 234.45 -8.26% 934.90%
GNP 6,21,28,000 38.15 -4.03% 7.06%
Zee 9.30.81,000 344 -6.98% 3.42%
TIC 2 82 36 800 219.6 -2.25% 11.46%
Baroda Bank 1,17,70,200 85.45 -4.47% 25.28%

(Increase in open interest and decrease in price)

In the BSE 500 index, Tech Mahindra, Birlasoft, Persistent, KPR Mill, and Grindwell Norton hit 52 week highs.

52 week trough

Twelve stocks in the broadest index on the exchange hit 52-week lows: Bajaj Auto, City Union Bank, Gillette, HDFC AMC, MGL, MRF, Sanofi, Whirlpool, Strides Pharma, Gulf Oil Lubricants, Colgate Palmolive and Akzo Nobel.

NSE’s India VIX index – which measures expectations of volatility in the market – rose 2.8 percent to 16.3 Friday.