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Trade setup for Nov 18: Will Nifty50's slide stop only at 17,800? Check out key market cues before Thursday's session

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The Sensex and Nifty50 indices have fallen for a second straight day, with the 50-scrip gauge forming a reasonable negative candle on the daily chart. Here's what the technical charts suggest for the coming session on D-Street.

Trade setup for Nov 18: Will Nifty50's slide stop only at 17,800? Check out key market cues before Thursday's session
Indian equity benchmarks extended losses to a second straight on Tuesday, dragged by financial, oil & gas and IT shares. Strength in automobile and consumer shares lent some support. Buying interest in heavyweights Asian Paints, Maruti Suzuki and ITC saved the Sensex from deeper losses.
The Bank Nifty failed to stay positive for yet another day, ending with a cut of 0.7 percent.
What do the charts suggest for Dalal Street now?
The Nifty50 index has formed a reasonable negative candle on the daily chart with an upper shadow, suggesting a sell-on-rise opportunity, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"This is not a good sign for the bulls to make a sharp comeback... The short-term trend is down and the bears have started to participate actively," he said.

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Can Nifty dip to 17,800 now?
Independent technical analyst Manish Shah believes the index is just above support at the rising 50-day moving average, at 17,842.
"Nifty is in oversold territory with the 17,800 mark now make or break level. It will not be surprising to see the index make a temporary dent below 17,800," said Shah, pointing out that momentum indicator MACD remains in a sell zone.
Here are key things to know about the market before Thursday's session:
SGX Nifty
At 8:02 am, Nifty futures trading on Singapore Exchange -- an early indicator of the Nifty50 -- were down 22 points or 0.1 percent at 17,861.5, suggesting a sluggish opening ahead on Dalal Street.
Global markets
Equity benchmarks in other Asian markets began the day on a weak note tracking overnight losses on Wall Street. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.7 percent in early trade. Japan's Nikkei 225 index was down 0.8 percent. S&P 500 futures were flat.
On Wednesday, the three main Wall Street indices fell 0.3-0.6 percent as investors fretted over early rate hikes by the Federal Reserve after strong retail earnings.
What to expect on Dalal Street
While the intraday texture appears to be weak, for the bulls, the 50-day simple moving average near 17,790 could act as key support, according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
"For day traders, immediate resistance could be at 18,000, below which, a correction wave is likely to continue up to 17,850-17,790 levels. Contra traders can take a bet near 17,790 with a strict support stop loss at 17,750, and reverse," said Chouhan, advising traders to be wary of short selling in the oversold region.
The market is expected to remain in a downward trend, though some movement in auto stocks may be there given the optimism on the chip shortage issue, according to Rahul Sharma, Co-Founder of Equity99.
Besides auto stocks, he expects banking, specialty chemical and realty names to be in focus on Wednesday.
Key levels to watch out for
Immediate resistance for the Nifty50 is expected at 18,000, with a good upmove possible only if the index is able to hold above this level for the coming sessions, said Mohit Nigam, Head - PMS at Hem Securities.
Important support lies at 17,750, a dip below which could open sharp weakness in the near term, fears Shetti.
FII/DII activity
Foreign institutional investors (FIIs) were net sellers of Indian equities worth Rs 344.4 crore on Wednesday. Domestic institutional investors offloaded a net Rs 61.1 crore worth of stocks, according to provisional exchange data.
Call/put open interest
The maximum open interest remains at the strike price of 18,200, and there is a high degree of accumulation each at 18,000 and 18,100. The maximum put open interest has moved to 17,800, NSE data shows. This suggests immediate resistance can be expected at 18,000, followed by a major hurdle at 18,200, and support comes in at 17,800.
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 (%)
BSOFT26,88,400480.459.11%25.63%
APOLLOHOSP23,10,8755,731.5512.23%23.80%
GSPL10,25,100320.40.95%23.22%
COFORGE7,09,8005,804.851.82%13.78%
BIOCON1,38,82,800375.851.57%9.33%
Long unwinding
SymbolCurrent OICMPPrice change (%)OI change (%)
CHAMBLFERT11,38,500356.8-5.46%-17.00%
ALKEM6,71,4003,472.05-2.31%-3.22%
ASTRAL6,29,4752,288-2.09%-2.97%
TORNTPOWER34,78,500539.8-0.76%-2.72%
APOLLOTYRE1,21,52,500229.85-1.61%-2.67%
(Decrease in open interest and price)
Short-covering
SymbolCurrent OICMPPrice change (%)OI change (%)
BOSCHLTD1,47,40018,849.951.29%-3.60%
NAVINFLUOR7,17,5253,5701.24%-2.45%
TATAPOWER9,15,97,500249.952.19%-2.42%
BHEL11,50,48,50063.90.08%-1.98%
TATACHEM83,73,000942.050.75%-1.96%
(Increase in price and decrease in open interest)
Short build-up
SymbolCurrent OICMPPrice change (%)OI change (%)
IPCALAB26,36,1002,041.65-3.37%10.46%
AXISBANK4,87,34,400714.45-1.77%8.88%
PAGEIND86,85040,934.85-0.27%7.56%
RECLTD3,83,94,000138.35-1.04%7.00%
DALBHARAT4,50,5001,990.80-3.22%6.77%
(Increase in open interest and decrease in price)
52-week highs
Tata Motors, Tata Motors DVR, Mahindra & Mahindra, L&T Technology Services, L&T Infotech, Escorts, Apollo Hospitals and Birlasoft were among the 20 stocks in the BSE 500 index — the broadest gauge on the bourse — that hit 52-week highs.
52-week lows
Seven stocks in the index hit 52-week lows, including Aarti Drugs, Amara Raja, Bayer Cropscience and Spandana Sphoorty.
Volatility gauge
NSE's India VIX index — which gauges the expectation of volatility in the near term — eased 1.4 percent to the 15 mark on Wednesday.
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