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    Trade setup for April 29: Can Nifty stay above 17,200 as it enters May F&O series?

    Trade setup for April 29: Can Nifty stay above 17,200 as it enters May F&O series?

    Trade setup for April 29: Can Nifty stay above 17,200 as it enters May F&O series?
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    By Sandeep Singh   IST (Updated)

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    Trade setup for Friday, April 29: The Nifty50 has managed to cross its 200-day moving average, but it is important for it to hold on to this zone to reach higher levels, according to experts. Here's what the technical charts suggest for the coming session.

    Indian equity benchmarks gained more than one percent in a strong session on Thursday, powered by broad-based gains. Financial, oil & gas, IT and FMCG shares were the biggest boosts for both headline indices.
    The Nifty50 benchmark finished the April derivatives (futures & options) series 253.2 points or 1.4 percent lower.
    What do the charts suggest for Dalal Street now?
    The Nifty50 has formed a small-body positive candle on the daily chart with upper and lower shadows, indicating an upmove with high volatility, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
    "The current confused state of mind of the market participant could drag the index to 16,900 again in the short term... Volatility and minor corrections are not ruled out in the short term," he said.
    All eyes on 17,200 
    The 50-scrip index reclaimed its 200-day simple moving average (17,219.1), which is expected to act as a trend-deciding level for traders, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
    The index took out four out of its six main moving averages on the last day of the April futures & options series.
    Period (No. of trading days) Simple moving averageSignal
    517,122Bullish
    1017,174.7Bullish
    2017,441.4Bearish
    5017,103.7Bullish
    10017,283.9Bearish
    20017,219.1Bullish
    Above 17,200, the rally could go on till 17,400-17,450, otherwise, the uptrend could be vulnerable with a strong possibility of quick intraday correction till 17,100-17,050, he added. 
    Here are key things to know about the market before the April 29 session:
    SGX Nifty
    At 7:38 am on Friday, Singapore Exchange (SGX) Nifty futures -- an early indicator of the Nifty index -- were up 76 points or 0.4 percent at 17,306, suggesting a higher opening ahead on Dalal Street.
    Equities in other Asian markets begin the last day of the week in the green, taking strong cues from Wall Street overnight. MSCI's broadest index of Asia Pacific shares outside Japan was up 0.4 percent in early hours.
    China's Shanghai Composite was up 0.1 percent but Hong Kong's Hang Seng flat. South Korea's KOSPI was up 0.7 percent and Singapore's Straits Times 0.9 percent.
    S&P 500 futures were down 0.4 percent.
    On Thursday, Wall Street surged as a strong quarterly report from Meta Platforms lifted beaten down technology and growth stocks, shifting focus away from concerns about global economic growth. The S&P 500 rose 2.5 percent, the Dow Jones 1.9 percent and the Nasdaq Composite 3.1 percent.
    What to expect on Dalal Street
    HDFC Securities' Shetti believes the short-term trend has become positive for the index.
    The Nifty has held on to the support zone of 16,800-16,700 in the April F&O series in a bullish sign, according to independent analyst Manish Shah. A tweezers bottom pattern suggests that an accumulation phase is on for the index, with each passing day of holds above 16,700 improving the chances of a revival to 17,800, Shah said.
    He expects a rally to 17,400 and then 17,800 if it manages to hold 17,100. "We are not seeing signs of a major move in either direction as of now," he added.
    Key levels to watch out for
    Palak Kothari of Choice Broking mentioned the following levels to watch out for: 
    IndexSupportResistance
    Nifty5017,00017,350
    Nifty Bank35,80037,000
    FII/DII activity
    Foreign institutional investors (FII) net purchased Indian shares worth Rs 743.2 crore on Thursday, according to provisional exchange data. Domestic institutional investors (DIIs) net bought shares worth Rs 780.9 crore. 
    Call/put open interest
    The maximum call open interest is accumulated at the strike of 17,300, with 1.7 lakh contracts, and the next highest at 17,500, with 1.4 lakh contracts, data shows. On the other hand, the maximum put open interest is at 17,200, with 1.7 lakh contracts, and then 17,000, with 1.3 lakh contracts.
    This suggests immediate resistance at 17,300 followed by a major hurdle at 17,500, and immediate support at 17,200 followed by a significant cushion at 17,000.
    Long build-up

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

    SymbolCurrent OICMPPrice change (%)OI change (%)
    SBILIFE10,80,7501,120.354.28%58.85%
    ULTRACEMCO3,91,5006,588.550.55%40.79%
    BHARATFORG12,39,000719.050.59%40.19%
    APOLLOHOSP2,98,0004,525.300.02%39.60%
    NESTLEIND60,62518,3800.63%38.97%

    Long unwinding

    SymbolCurrent OICMPPrice change (%)OI change (%)
    ATUL16,2758,828-1.56%-70.97%
    BAJAJ-AUTO3,49,0003,819.95-2.03%-62.61%
    L&TFH1,58,75,79688.2-0.90%-51.43%
    ABB90,2502,086-0.12%-41.55%
    ALKEM69,0003,282.75-0.55%-39.42%

    (Decrease in open interest as well as price)

    Short covering
    SymbolCurrent OICMPPrice change (%)OI change (%)
    HONAUT1,74041,167.850.44%-65.52%
    IRCTC23,34,500754.050.69%-61.66%
    INDHOTEL45,52,904247.65.34%-58.92%
    BERGEPAINT5,28,0007332.38%-46.46%
    AUBANK5,60,5001,402.302.62%-45.23%
    (Increase in price and decrease in open interest)
    Short build-up
    SymbolCurrent OICMPPrice change (%)OI change (%)
    LALPATHLAB1,50,0002,630.85-5.20%37.42%
    M&M41,03,400924.05-0.39%37.04%
    BHARTIARTL88,22,650744.9-1.04%29.75%
    CHOLAFIN12,88,750743.65-0.22%24.15%
    PEL6,28,1002,137.60-1.27%24.04%
    (Decrease in price and increase in open interest)
    52-week highs
    A total of eight stocks on the BSE 500 -- the broadest index on the bourse -- hit 52-week highs: Reliance Industries, Adani Power, CreditAccess, Crisil, DCM Shriram, IIFL Finance, Fine Organic and GHCL.
    52-week lows
    Only one stock hit a 52-week low: Zomato.
    Fear index
    The India VIX -- also known as the fear index -- cooled off six percent to settle at 19.4 on Thursday.
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