0

0

0

0

0

0

0

0

0

Trade setup for Oct 5: Nifty50 to extend rebound? Key market cues before Tuesday's session

Mini

Most analysts expect the 50-scrip Nifty index to continue its upmove for the time being. Here's how the coming session is poised to start on Dalal Street.

Trade setup for Oct 5: Nifty50 to extend rebound? Key market cues before Tuesday's session
Indian equity benchmarks made a comeback on Monday following four trading sessions of losses on Dalal Street. Across-the-board gains led by banking, IT, pharma and metal shares helped the Nifty50 index reclaim the 17,650 mark. Strong buying interest in broader markets also aided investors' sentiments.
Analysts are awaiting the RBI's policy review and the onset of the earnings season, both due this week.
So, what do the charts suggest for Dalal Street?
The 50-scrip index has formed a bullish morning star pattern and could continue its uptick, said Deepak Jasani, Head of Retail Research at HDFC Securities.
Jasani sees Nifty50 remaining in the 17,576-17,781 band in the near term.
ALSO READ
Crucial support at 17,600, traders!
The index once again took support near the 20-day simple moving average and reversed sharply, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities. The crucial support level for day traders lies at 17,600, above which, the uptrend momentum is likely to continue up to 17,800-17,850 levels. The uptrend would be vulnerable below 17,600, he said.
Here are key things to know about the market before Tuesday's session:
SGX Nifty
At 7:52 am on Tuesday, Nifty futures trading on Singapore Exchange -- an early indicator of NSE's Nifty50 benchmark index in India -- were down 128.5 points or 0.7 percent at 17,582, suggesting a weak start ahead on Dalal Street.
Global markets
Equities in other Asian markets tumbled with MSCI's broadest index of Asia Pacific shares outside Japan last seen trading 0.9 percent lower. Japan's Nikkei 225 index hit a one-month low. Oil rates eased on Tuesday after rising to multi-year highs the previous day on the decision of the OPEC+ group to maintain restraint on supply.
S&P 500 E-Mini futures were down 0.1 percent, suggesting a muted opening in the US on Tuesday. Two of the three key US indices fell around one percent each on Monday whereas the tech stocks-heavy Nasdaq Composite gauge tanked 2.1 percent amid an uptick in Treasury yields.
What to expect on Dalal Street
Manish Shah, Founder of Nifty Triggers, expects the Nifty index to rally to 18,000-18,150 on a break above the 17,750 mark in the next couple of days. "Expect Nifty to rally to around 17,850-17,900 before the end of the weekly expiry on Thursday. We could see the re-appearance of bullish sentiment in the market," he said.
Rahul Sharma, Co-Founder of Equity99, expects banking, auto, metal and real estate shares to be in focus on Tuesday.
Key levels to watch out for
Nifty50: The level of 17,750 will act as immediate resistance for the index, above which the next hurdles might be at 17,780, 17,900 and 17,950 levels, said Sharma. He expects support at 17,660 followed by 17,585 levels for the time being.
Bank Nifty: The banking index finds support at 37,350, 37,150 and 37,000 levels, and resistance is expected at 37,800, 38,000 and 38,100, he said.
FII/DII activity
Foreign institutional investors (FIIs) brought in a net Rs 860.5 crore into Indian equities on Monday. Net purchases by domestic institutional investors (DIIs) stood at Rs 228.1 crore, exchange data showed.
Call/put open interest
The maximum call open interest is accumulated at the strike price of 18,000 and there is a high degree of open interest at 17,800. On the other hand, among the strike prices carrying high put open interest are 17,600, 17,500 and then 17,400, NSE data shows. This suggests immediate resistance at 17,800 and then 18,000, and support at 17,600, followed by 17,500.
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 (%)
DALBHARAT1,00,5002,135.100.37%79.35%
PERSISTENT81,1503,739.702.09%65.25%
OBEROIRLTY4,77,400924.850.54%63.78%
JKCEMENT40,2503,424.106.19%58.70%
ASTRAL4,74,1002,378.957.66%50.52%
Long unwinding
SymbolCurrent OICMPPrice change (%)OI change (%)
RBLBANK2,33,79,800194.3-0.08%-0.78%
BALKRISIND16,00,0002,532-0.87%-0.23%
MGL29,83,8001,097-0.31%-0.02%
(Decrease in open interest and price)
Short-covering
SymbolCurrent OICMPPrice change (%)OI change (%)
LICHSGFIN1,78,90,000446.753.85%-3.92%
TORNTPHARM6,74,5003,139.901.80%-3.48%
MRF48,28079,859.850.58%-1.74%
RAMCOCEM19,84,7501,0111.59%-1.67%
AUROPHARMA1,44,87,850735.452.42%-1.54%
(Decrease in open interest and increase in price)
Short build-up
SymbolCurrent OICMPPrice change (%)OI change (%)
CUMMINSIND21,59,400897-2.40%42.21%
DELTACORP69,48,300275.1-2.69%32.77%
CROMPTON5,50,000488.4-0.62%29.20%
DIXON4,44,6254,863.50-0.32%24.43%
METROPOLIS4,93,2002,739.60-0.05%20.15%
(Increase in open interest and decrease in price)
52-week highs
Reliance Industries, Divi's Labs, Sun Pharma, NTPC, Canara Bank, Tata Power, Tata Investment, Hindalco, Nalco and IRCTC were among the 45 BSE 500 stocks clocking 52-week highs. DLF, GMR Infra, Can Fin Homes, Bata, Deepak Nitrite, Inox Leisure and Godfrey Philip also hit the milestone.
52-week lows
No stock in the 500-strong index hit a 52-week low. Among the few other scrips that hit the trough was Krsnaa Diagnostics.
Volatility gauge
NSE's India VIX index -- which measures the expectation of volatility in the near term --  eased 2.8 percent to 16.7 on Monday, having dropped as much as 11 percent during the session.
next story