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Trade setup for Nov 16: Can Nifty50 take out 18,200 hurdle? What next for Bank Nifty?

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The bulls need to take out the 18,225 hurdle to take the Nifty50 to higher levels, according to Gaurav Ratnaparkhi of Sharekhan by BNP Paribas. Here's what the technical charts suggest for the coming session on D-Street.

Trade setup for Nov 16: Can Nifty50 take out 18,200 hurdle? What next for Bank Nifty?
Indian shares gave up most of their intraday gains in a volatile session on Monday, as advances in IT, pharma and consumer stocks were offset by declines in oil & gas, metal and auto counters. The Bank Nifty index failed to hold on to the day's gain after rising as much as one percent.
What do the charts suggest?
The Nifty50 index has formed a small negative candle with an upper shadow, suggesting the presence of crucial overhead resistance at 18,150-18,200 levels, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
It signals rangebound action in the market at crucial resistance, said Shetti, who though believes the short-term uptrend remains intact.

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Near-term support remains at Mount 18,000
The hourly chart suggests that the upper end of a rising channel is acting as a barrier for the Nifty, which the bulls need to breach in order to take the index to the next levels, according to Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas.
"Once the level of 18,225 is crossed, the index can march towards 18,400. Till then, there is scope for the index to retest near-term support at 18,000," Ratnaparkhi said.
Here are key things to know about the market before Tuesday's session:
SGX Nifty
At 8:03 am on Tuesday, Nifty futures trading on Singapore Exchange -- an early indicator of the Nifty50 index -- were up 48 points or 0.3 percent at 18,187, suggesting a positive start ahead on Wall Street.
Global markets
Equities in other Asian markets rose despite a sluggish session on Wall Street overnight. MSCI's broadest index of Asia Pacific shares outside Japan was up 0.3 percent in early deals, and so was Japan's Nikkei 225 gauge.
S&P 500 futures were up 0.1 percent in early Asian trade. On Monday, the S&P 500 and the Dow Jones ended flat but the technology stocks-heavy Nasdaq Composite declined 0.1 percent. Rising Treasury yields dented the appetite for technology stocks.
What to expect on Dalal Street
HDFC Securities' Shetti said rangebound action in the Nifty50 is not confirming any reversal from the highs for now. "There is a possibility of 1-2 days of rangebound movement before the index shows any upside breakout of 18,200, with immediate support at 18,020," he said.
Headline indices are expected to remain flattish with a main focus on the primary market in the next two weeks, according to Rahul Sharma, Co-Founder of Equity99.
"Except for any major event that might trigger movement, we don`t expect any fresh breakout in the market. Investors are advised not to make any fresh entry in the current scenario," said Sharma, who expects healthcare, auto, banking and realty shares to be in focus on Tuesday.
Key levels to watch out for
Nifty50: Major support for the index is at the 18,000 mark, which, if broken, will be followed by more support at 17,900 and then 17,775, according to Sharma, who expects major resistance at 18,200, followed by next hurdles at 18,300 and 18,450 levels.
Bank Nifty: For the banking index, major support is expected at 38,575 and major resistance at 38,850, he said.
FII/DII activity
In a reversal of the recent bearish trend, foreign institutional investors (FIIs) were net buyers of Indian equities for a second straight session, buying shares worth Rs 424.7 crore on Monday. Net buys by domestic institutional investors stood at Rs 1,524.7 crore, according to provisional exchange data.
Call/put open interest
The maximum open interest is placed at the strike price of 18,200, and next at 18,500. The maximum put open interest remains at 18,000, and the next highest at 17,900, NSE data shows. This suggests immediate resistance can be expected at 18,200, followed by the hurdle of 18,500, and major support stays 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 (%)
APOLLOHOSP20,30,3755,1059.22%20.88%
METROPOLIS7,77,0003,3478.34%18.10%
PIIND15,28,0002,8915.19%12.97%
ASHOKLEY3,87,81,000152.554.38%10.36%
BATAINDIA19,12,9002,2333.08%10.15%
Long unwinding
SymbolCurrent OICMPPrice change (%)OI change (%)
JKCEMENT1,94,2503,516.50-4.69%-7.84%
NATIONALUM10,46,94,50098.45-2.28%-5.43%
NAVINFLUOR7,88,4003,536.05-0.01%-4.57%
RBLBANK2,93,71,200207.8-1.96%-2.04%
TRENT24,00,4751,149.20-0.03%-1.78%
(Decrease in open interest and price)
Short-covering
SymbolCurrent OICMPPrice change (%)OI change (%)
POWERGRID2,46,38,460188.052.90%-5.95%
IEX1,39,57,500813.52.45%-4.70%
TORNTPOWER37,18,500547.11.14%-3.43%
BIOCON1,66,26,700361.63.94%-3.35%
APLLTD23,01,200789.91.28%-2.46%
(Increase in price and decrease in open interest)
Short build-up
SymbolCurrent OICMPPrice change (%)OI change (%)
MANAPPURAM2,13,03,000196.55-10.09%16.87%
FSL49,08,800168-5.70%15.25%
TORNTPHARM7,58,7502,795-0.16%15.06%
IPCALAB21,94,4252,148.05-0.84%14.59%
GRANULES1,16,77,700303.55-2.66%12.07%
(Increase in open interest and decrease in price)
52-week highs
HDFC, Bharti Airtel, L&T, HPCL, Ashok Leyland, Adani Transmission, Adani Enterprises, L&T Infotech, Tata Elxsi, Rajesh Exports and Muthoot Finance were among the 34 stocks in the BSE 500 index — the broadest gauge on the bourse — that hit 52-week highs.
52-week lows
Five stocks in the index hit 52-week lows: Aarti Drugs, Granules, Aegis Logistics, IOL Chemicals and Pharma, and Procter & Gamble Health.
Volatility gauge
NSE's India VIX index — which gauges the expectation of volatility in the near term — rose 1.6 percent to 15.5 on Monday, having jumped as much as 4.1 percent during the session.
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