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    Trade setup for Aug 30: As Nifty nears key support, more pain on the cards for the bulls

    Trade setup for Aug 30: As Nifty nears key support, more pain on the cards for the bulls

    Trade setup for Aug 30: As Nifty nears key support, more pain on the cards for the bulls
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    By Sandeep Singh   IST (Updated)

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    Trade setup for Tuesday, Aug 30: A fall below 17,250 in the Nifty50 could extend all the way to 17,150-17,100 levels, warn experts. Here's what the technical charts suggest.

    Indian equity benchmarks began the week sharply lower, with the Sensex taking its biggest plunge since mid-June, as Fed Chair Jerome Powell's more-hawkish-than-expected tone at the annual Jackson Hole symposium last week sent shockwaves across global markets.
    What do the charts suggest for Dalal Street?
    The Nifty50 has formed a reasonable positive candle on the daily chart, reflecting sharp downside momentum, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
    He warned of more downside ahead on Dalal Street. "Monday's downside gap could be considered as a bearish breakaway one and if it remains unfilled for the next few sessions, which could mean the market is in a downtrend," he said.
    Sell-off may continue if Nifty Bank sinks below 38,000
    The banking index held key support at 38,000 on Monday but appears to be stuck in a broad range between 38,000 and 39,000, said Kunal Shah, Senior Technical Analyst at LKP Securities.
    The current sell-off may continue if the Nifty Bank fails to hold 38,000 on a closing basis, he said. A move past an immediate hurdle at 38,500 can be followed by a short covering move towards 38,800-39,000 levels, he pointed out.
    Here are key things to know about the market ahead of the August 30 session:
    SGX Nifty
    On Tuesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — rose as much as 64.5 points or 0.4 percent to 17,445 ahead of the opening bell on Dalal Street.
    Global markets
    Equities in other Asian markets saw mixed moves following a weak session on Wall Street overnight, with MSCI's broadest index of Asia Pacific shares outside Japan down 0.6 percent at the last count.
    Japan's Nikkei 225 was up one percent, but China's Shanghai Composite was down 0.6 percent and Hong Kong's Hang Seng down 1.3 percent.
    S&P 500 futures edged 0.1 percent higher, suggesting a soft start ahead in the US. On Monday, the S&P 500 fell 0.7 percent, Dow Jones 0.6 percent and the Nasdaq Composite one percent.
    Key moving averages
    In a bearish signal, the Nifty50 slipped below its long-term moving average.
    Period (No. of sessions)SMA
    Nifty50Nifty Bank
    517,332.5
    38,302.1
    1017,367.738,426.2
    2017,488.238,783.5
    5017,54638,728.7
    10017,664.3
    38,924.9
    20017,357.638,173.7
    The Nifty50 faces immediate resistance in the 17,400-17,450 zone and has sacrosanct support at 17,250, below which the index could slip all the way to 17,150-17,100 levels, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
    A move above 17,400 could lead to levels of 17,450-17,500 territory, he said.
    FII/DII activity
    Foreign institutional investors emerged net sellers of Indian shares on Monday, in contrast to the trend in much of this month.
    Call/put open interest
    The maximum call open interest is accumulated at the strike price of 18,000, with 2.1 lakh contracts, and the next highest at 17,700, with 1.7 lakh contracts, according to exchange data. On the other hand, the maximum put open interest is at 17,000 and 17,300, with 1.6 lakh contracts each, and 17,200, with 1.5 lakh contracts.
    This suggests an immediate hurdle at at 17,700 and a strong base at 17,300.
    Long build-up
    Here are five stocks that saw an increase in open interest as well as price:
    StockCurrent OICMPPrice change (%)OI change (%)
    ESCORTS1,612,0501,9156.04%23.54%
    HINDCOPPER15,991,700118.550.68%14.71%
    COLPAL2,493,7501,644.803.93%14.58%
    MARICO7,924,800524.61.13%11.30%
    INDIACEM11,602,9002194.09%9.02%
    Long unwinding
    StockCurrent OICMPPrice change (%)OI change (%)
    PEL1,678,6001,942.15-2.32%-27.85%
    HINDALCO23,507,025432.4-2.45%-2.32%
    BANKBARODA88,264,800127.3-1.24%-1.42%
    GSPL3,762,500237.35-1.74%-1.40%
    IBULHSGFIN36,356,000135.8-1.67%-1.13%
    (Increase in price and decrease in open interest)
    Short covering
    StockCurrent OICMPPrice change (%)OI change (%)
    NMDC60,192,800123.850.08%-0.69%
    (Increase in price and decrease in open interest)
    Short build-up
    StockCurrent OICMPPrice change (%)OI change (%)
    GMRINFRA119,205,00034.70-1.98%3.11%
    (Decrease in price and increase in open interest)
    52-week highs
    A total of 13 stocks in the BSE 500 universe — the broadest index on the bourse — hit 52-week highs:
    ABBCOCHINSHIPMAZDOCK
    ADANITRANSELGIEQUIPRATNAMANI
    AEGISLOGESCORTSTHERMAX
    ATGLINDHOTEL
    BELJYOTHYLAB
    52-week lows
    Nine stocks hit 52-week lows:
    BIOCONMETROPOLISSANOFI
    BSOFTMPHASISSHILPAMED
    HCLTECHPRINCEPIPETHYROCARE
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