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Trade setup for Nov 15: Can Nifty50 hold on to recent gains? Key market cues before Monday's session

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The Nifty50 index has formed a long bull candle on the daily chart with a minor lower shadow, says Nagaraj Shetti of HDFC Securities. Here's what the technical charts suggest for the coming session on D-Street.

Trade setup for Nov 15: Can Nifty50 hold on to recent gains? Key market cues before Monday's session
Indian equity benchmarks made a comeback on Friday following three days of losses. Gains across sectors, led by IT, financial and oil & gas shares, lifted the headline indices. The Bank Nifty index ended half a percent higher, having slid for four back-to-back sessions.
What do the charts suggest for Dalal Street now?
The Nifty50 index has formed a long bull candle on the daily chart with a minor lower shadow, signalling chances of an upside breakout, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"We observe the formation of consistent higher bottoms on the daily chart... One may expect a further upmove in the short term," he said.

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Time to be selective
The formation of a shooting star pattern on the monthly chart warrants a cautious stance, according to Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One.
"As long as we do not break the high of the candle, it can prove its significance anytime. We reiterate on avoiding aggressive longs and even if one wants to follow stock-specific moves, one needs to be very selective," he said.
Here are key things to know about the market before Monday's session:
SGX Nifty
At 7:46 am on Monday, Nifty futures trading on Singapore Exchange -- an early indicator of the Nifty50 index -- were up 78.5 points or 0.4 percent at 18,212, suggesting a positive opening ahead on Dalal Street.
Global Markets
Asian shares rose on Monday as US stock futures gained, though investors were cautious ahead of a batch of Chinese economic data due later in the day. MSCI's broadest index of Asia Pacific shares outside Japan was up 0.4 percent. Japan's Nikkei 225 index was up 0.5 percent, but China's Shanghai Composite down 0.1 percent.
S&P 500 futures were up 0.1 percent in early Asian trade.
What to expect on Dalal Street
Chavan of Angel One expects 18,200-18,350 to be a crucial range for the coming week. "Till the time we do not surpass it convincingly, we are not completely out of the woods yet. It would be too early to comment on it but we can clearly see the bearish formation of a head and shoulder pattern in process on the daily chart," he said.
HDFC Securities' Shetti believes Friday's sharp upmove to have nullified the short-term negative pattern on the daily chart.
"A further upmove from here could be considered as an upside breakout of important resistance, which could pull the Nifty towards 18,350 in the short term. Immediate support is placed at 18,000," he said.
Key levels to watch out for
Nifty50: Strong support for the index is at the 18,000 mark, which, if compromised, will be followed by 17,875 and then 17,700, according to Rahul Sharma, Co-Founder of Equity99. Strong resistance is expected at 18,200, followed by 18,250 and then 18,400, he said.
Bank Nifty: Strong support for the banking index is at 38,600, which might be followed by next support at 38,300 levels, and strong resistance at 38,900, and then 40,200, Sharma added.
FII/DII activity
Foreign institutional investors (FIIs) net purchased Indian equities worth Rs 511.1 crore on Friday, and net buys by domestic institutional investors stood at Rs 851.4 crore, according to provisional exchange data. That was in contrast to FIIs' bearish stance on the Indian market recently.
Call/put open interest
The maximum open interest is placed at the strike price of 18,500, and there is a high degree of accumulation at 18,300 and 18,400 levels. The maximum put open interest has shifted to 18,000 from 17,800 thanks to Friday's bounce, NSE data shows.
This suggests immediate resistance can be expected in the 18,300-18,400 band with a strong hurdle at 18,500, and immediate support comes in at 18,000.
Long build-up
Here are five stocks that saw an increase in open interest as well as price, suggesting a build-up of long positions:
SymbolCurrent OICMPPrice change (%)OI change (%)
IDEA81,64,10,00010.354.55%3.93%
NALCO10,46,94,500100.71.87%6.48%
VEDANTA16,33,57,600330.41.71%1.35%
ITC1,14,91,200234.71.36%14.04%
TATAMOTORS77,94,750510.751.08%19.02%
Long unwinding
SymbolCurrent OICMPPrice change (%)OI change (%)
BANKBARODA15,90,38,100101.55-0.29%-3.20%
SAIL15,89,25,500117-0.04%-2.22%
PFC82,52,200136-1.66%-27.07%
PNB27,92,80,00041.8-0.59%-0.96%
TATAPOWER10,35,04,500240.35-0.12%-2.39%
(Decrease in open interest and price)
Short-covering
SymbolCurrent OICMPPrice change (%)OI change (%)
BHEL11,89,65,00065.250.38%-4.65%
IDFCFIRSTB16,41,41,00051.81.57%-2.74%
SBIN10,68,39,000512.70.35%-2.66%
TATAMOTORS8,26,38,600508.751.05%-2.76%
ITC23,63,32,800233.61.37%-0.91%
(Increase in price and decrease in open interest)
Short build-up
SymbolCurrent OICMPPrice change (%)OI change (%)
NMDC1,01,84,000143.6-1.20%57.35%
RECLTD3,34,98,000145.35-2.94%10.88%
TATASTEEL4,59,44,6251,289.90-1.10%6.23%
GMRINFRA38,70,00042.1-3.00%72.00%
FEDERALBNK49,10,000100.7-0.20%21.84%
(Increase in open interest and decrease in price)
52-week highs
Bharti Airtel, InterGlobe Aviation, Tata Elxsi, L&T Infotech, Mindtree, IDFC, BEL, Adani Transmission, Adani Total Gas, Page Industries, Cholamandalam Investment and Chalet Hotels were among the 27 stocks in the BSE 500 index -- the broadest gauge on the bourse -- that hit 52-week highs.
52-week lows
One stock in the index hit a 52-week low: Aarti Drugs.
Volatility gauge
As headline indices made a significant bounceback, NSE's India VIX index — which gauges the expectation of volatility in the near term — eased 6.9 percent to 15.2 on Friday.
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