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This article is more than 1 month old.

Trade setup for Nov 24: Can bulls lift Nifty50 further? Check out key market cues before Wednesday's session

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The Nifty50 has formed a reasonable positive candle on the daily chart, hinting at a pullback rally, says Nagaraj Shetti of HDFC Securities. Here's what the technical charts suggest for the coming session on Dalal Street.

Trade setup for Nov 24: Can bulls lift Nifty50 further? Check out key market cues before Wednesday's session
Indian equity benchmarks rebounded on Tuesday amid broad-based gains following four back-to-back sessions of losses. Buying interest in financial, oil & gas and metal shares led to the bounceback in the headline indices, though losses in IT shares played spoilsport. The midcap and smallcap gauges surged nearly two percent each.
What do the charts suggest for Dalal Street now?
The 50-scrip index has formed a reasonable positive candle on the daily chart, hinting at a pullback rally, Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"After a decisive downside breakout of the trend line support at 17,800, the current upside movement could be considered as a sell-on-rise opportunity," said Shetti, who expects strong resistance at 17,750-17,800 levels in the near term and immediate support at 17,220.

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Pullback to continue?
Shrikant Chouhan, Head - Equity Research (Retail) at Kotak Securities, is of the view that the pullback can last till 17,600 or 17,700 levels. "On the downside, 17,300 and 17,250 will be the mainstays of the market. Try to reduce the weak long positions between 17,600 and 17,700 levels," he said.
Here are key things to know about the market before Wednesday's session:
SGX Nifty
At 7:47 am on Wednesday, Nifty futures trading on Singapore Exchange -- an early indicator of the Nifty50 index -- were up 65 points or 0.4 percent at 17,614, suggesting a positive opening ahead on Dalal Street.
Global markets
Equities in other Asian markets were largely down following a mixed session on Wall Street overnight. MSCI's broadest index of Asia Pacific shares outside Japan was flat. Japan's Nikkei 225 was down 1.1 percent and China's Shanghai Composite down 0.1 percent. S&P 500 futures were down 0.1 percent in Asian trade.
On Tuesday, the three main Wall Street indices ended on a mixed note. The S&P 500 and the Dow Jones rose 0.2 percent and 0.6 percent respectively but the tech stocks-heavy Nasdaq Composite fell 0.5 percent. Rising Treasury yields weighed on major technology stocks.
What to expect on Dalal Street
HDFC Securities' Shetti said the index appears to have halted a short-term downtrend, and one may expect further upside after a decisive move above 17,750-17,800 levels, which could change the negative trend to positive. "Any weak upside bounce in the next 1-2 sessions could result in the Nifty revisiting its current low of 17,200," he said.
The index has to hold above the 17,500 mark for an up move towards 17,650 and 17,777, according to Chandan Taparia, Vice President-Equity Derivatives and Technical, Broking and Distribution, Motilal Oswal Financial Services. On the downside, support is intact at 17,350 and 17,200, he said.
Key levels to watch out for
Nifty50: Immediate resistance for the index is expected at 17,650 and support remains at 17,200, according to Mohit Nigam, Head-PMS at Hem Securities.
Bank Nifty: For the banking index, support is seen at 36,700 and resistance at 37,500, he said.
FII/DII activity
Foreign institutional investors (FIIs) net offloaded Indian equities worth Rs 4,477.1 crore on Tuesday. However, domestic institutional investors made net purchases of Rs 1,412.1 crore, according to provisional exchange data.
Call/put open interest
The maximum open interest remains at the strike price of 18,000, with
1.6 lakh contracts, and the next highest at 17,800 with 1.3 lakh contracts, whereas the highest put open interest is accumulated at the 17,000 mark with more than one lakh contracts, NSE data shows.
This suggests immediate resistance stays at 17,800, followed by a major hurdle at Mount 18,000, and support comes in at 17,000.
Fear gauge
NSE's India VIX index — which gauges the expectation of volatility in the near term — jumped 2.8 percent to its highest close since October 21, a day after its biggest spike in a month
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 (%)
MINDTREE10,87,2004,826.551.70%19.41%
SIEMENS9,56,7252,314.452.16%16.01%
DABUR76,40,000611.70.70%13.07%
BSOFT20,13,70050310.34%12.91%
LTI3,66,4506,9541.59%11.63%
Long unwinding
SymbolCurrent OICMPPrice change (%)OI change (%)
DIXON3,57,6255,063.25-0.19%-28.21%
INDIAMART1,32,9007,509.95-0.24%-23.42%
MANAPPURAM1,78,92,000176.95-0.48%-20.71%
INDUSINDBK1,17,52,200981.75-2.41%-20.37%
SUNTV1,09,69,500534.9-0.86%-18.76%
(Decrease in open interest and price)
Short-covering
SymbolCurrent OICMPPrice change (%)OI change (%)
APLLTD16,43,950763.553.92%-38.81%
RECLTD3,01,32,000135.71.50%-36.38%
WHIRLPOOL3,46,0002,1992.12%-31.79%
BOSCHLTD94,80017,294.952.21%-29.17%
AARTIIND22,39,750929.51.94%-27.93%
Short build-up
SymbolCurrent OICMPPrice change (%)OI change (%)
WIPRO1,96,19,200641.65-0.54%9.58%
LALPATHLAB3,53,6253,430-1.30%7.07%
ICICIGI21,52,6251,457.05-0.45%6.00%
MARUTI18,02,4007,838.75-0.49%4.70%
POLYCAB5,74,8002,366.70-0.18%4.38%
(Increase in open interest and decrease in price)
52-week highs
Bharti Airtel, Adani Green, Birlasoft, Raymond, P&G Hygiene & Health, Tanla and Trident were among the nine stocks in the BSE 500 index — the broadest gauge on the bourse — that hit 52-week highs.
52-week lows
Hero MotoCorp, Lupin, Amara Raja, MGL, Solara Active, Strides Pharma, Aarti Drugs and Aegis Logistics were among the 11 stocks that hit 52-week lows.
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