0

0

0

0

0

0

0

0

0

Trade setup for Sept 16: After 17,500, what next for Nifty50? Key market cues before Thursday's session

Mini

After the Nifty50 index takes out 17,500 decisively, one can expect 17,600-17,700 levels in the coming sessions, says HDFC Securities' Nagaraj Shetti. Here's how the September 16 session is poised to start.

Trade setup for Sept 16: After 17,500, what next for Nifty50? Key market cues before Thursday's session
Dalal Street raced to fresh peaks on Wednesday amid buying across most sectors, after the Cabinet cleared production-linked incentives for the auto sector and a relief package for the telecom sector. IT, oil & gas and PSU banking stocks were in high demand.
The Nifty50 index both surpassed and closed above the 17,500 mark for the first time.
So, what do the charts suggest for Dalal Street?
The index formed a long bull candle on the daily chart in a positive sign of further upside in the short term, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Time to go stock-specific 
"One can still continue with a stock-centric approach by following strict stop losses; because they are still providing better trading opportunities," said Sameet Chavan, Chief Analyst - Technical and Derivatives at Angel Broking.
Since the market is in uncharted territory, it is difficult to project the upside levels, he said. He suggests considering every 100 points of movement in the index as a crucial level.
Here are key things to know about the market before Thursday's session:
SGX Nifty
At 8:08 am on Thursday, Nifty futures trading on Singapore Exchange -- an early indicator of India's Nifty50 benchmark index -- were down 10.5 points or 0.1 percent at 17,523, suggesting a muted start ahead on Dalal Street.
Global markets
Equities in other Asian markets surrendered initial gains despite overnight gains on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan was last seen trading 0.7 percent lower. Chinese and Japanese benchmarks were down half a percent each while Hong Kong was down down 1.4 percent.
S&P 500 E-Mini futures were unchanged, pointing to a flat start in the US on Thursday, a day after the three main Wall Street indices rose 0.7-0.9 percent boosted by a rise in crude oil rates that boosted energy shares.
What to expect on Dalal Street
In the coming sessions, one can expect the Nifty50 index to move towards 17,600-17,700 levels, said HDFC Securities' Shetti.

Rahul Sharma, Co-Founder of Equity99, expects banking stocks to perform well in the coming days. Besides, telecom, automobile, IT and FMCG stocks should be on investors' radar on Thursday.

Key levels to watch out for
Nifty50: Sharma expects support for the index at 17,450, followed by 17,375- 17,300 levels, and resistance at 17,555, followed by 17,625-17,700.
Bank Nifty: The banking index finds support at 36,740, and next at 36,560. Hurdles for Bank Nifty are placed in the 37,000-37,200 zone.
FII/DII activity
Foreign institutional investors (FIIs) brought in a net Rs 232.8 crore into the Indian capital market on Wednesday. Net purchases by domestic institutional investors (DIIs) stood at Rs 167.7 crore, exchange data showed.
Call/put open interest
The maximum call open interest is accumulated at the strike price of 17,600, and the second highest only at 18,000. On the other hand, the maximum put open interest is at the strike price of 17,400, NSE data shows.
This indicates that immediate resistance can be expected at 17,600, and support comes in at 17,400.
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 (%)
ADANIENT1,75,92,0001,5260.18%22.02%
TORNTPOWER34,44,000489.551.41%18.42%
NTPC6,24,15,000124.757.27%15.20%
IEX79,07,500600.52.10%14.81%
BHARTIARTL6,76,09,626727.14.52%14.37%
Long unwinding
SymbolCurrent OICMPPrice change (%)OI change (%)
IRCTC21,48,9003,705-0.89%-12.96%
ESCORTS70,06,4501,460-0.71%-4.34%
POLYCAB6,70,8002,460-0.35%-2.73%
LICHSGFIN2,18,34,000409.3-0.47%-2.61%
PAGEIND87,54032,535-0.43%-1.34%
(Decrease in open interest and price)
Short-covering
SymbolCurrent OICMPPrice change (%)OI change (%)
IDEA84,42,70,00092.86%-13.59%
CANBK7,40,61,000160.252.69%-3.55%
LTTS6,63,4004,581.050.54%-3.04%
GODREJPROP16,02,9001,634.751.19%-2.72%
UBL15,32,3001,5940.14%-2.51%
(Decrease in open interest and increase in price)
Short build-up
SymbolCurrent OICMPPrice change (%)OI change (%)
IPCALAB2,42,7752,635.15-0.50%36.52%
INDUSTOWER1,34,98,800245.55-0.59%14.27%
TVSMOTOR45,47,200547.3-0.62%10.28%
MGL18,78,0001,172.45-0.53%9.52%
IBULHSGFIN3,19,76,500235.25-1.84%8.14%
(Increase in open interest and decrease in price)
Stocks hitting 52-week highs
TCS, Bharti Airtel, HCL Tech, Tech Mahindra, Hindalco, L&T, Grasim, Adani Transmission, NTPC, JSW Energy and Zee Entertainment were among the 52 stocks in the BSE 500 index — the broadest index on the bourse — that clocked 52-week highs.
Bata, Bajaj Electric, Dr Lal, Cyient, Deepak Nitrite, Dish TV, IndiGo, IRCTC, Linde, Mphasis, Persistent, Pidilite, Tata Power, Tata Elxsi, Titan, Voltas, Oil India, Rossari, Zensar Tech and TeamLease also hit the milestone.
52-week lows
No stock in the BSE 500 universe hit a 52-week low. Aashka Hospitals and Suvidhaa Infoserve were among the few stocks that hit the trough.
Volatility gauge
The India VIX index -- which gauges the expectation of volatility in the market --  rose 1.1 percent to 13.7 on Wednesday, having risen as much as 2.2 percent during the session.