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    Trade setup for June 27: A key hurdle awaits Nifty50 near 15,800

    Trade setup for June 27: A key hurdle awaits Nifty50 near 15,800

    Trade setup for June 27: A key hurdle awaits Nifty50 near 15,800
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    By Sandeep Singh   IST (Updated)

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    Trade setup for Monday, June 27: The Nifty50 is in for one more leg of correction before a breakout, say experts. Here's what the technical charts suggest.

    Indian equity benchmarks continued to rise for a second straight day on Friday, boosted by financial, oil & gas and auto stocks, as a slide in commodity rates took off some of the concerns globally about red-hot inflation.

    What do the charts suggest for Dalal Street now?

    The Nifty50 has formed a small positive candle on the daily chart, suggesting a follow-through upmove in the market, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
    He expects strong resistance at 15,800. "A decisive breakout above that level has been missing in the recent upmove," he pointed out.
    Nifty50 not out of the woods
    The benchmark index is back to the recent breakdown point of 15,700 and entered a corridor of uncertainty, Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, told CNBCTV18.com
    "We are still not out of the woods and until the Nifty does not surpass its major hurdle at 15,900-16,000 on a closing basis, one should avoid aggressive bets on the long side. It would be interesting to see how the market behaves in the first half of the week," he said.
    "If the global relief extends, we may see the Nifty cross 16,000, which would certainly trigger a sharp short covering rally."
    Here are key things to know about the market ahead of the June 27 session:
    SGX Nifty
    Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — rose as much as 183 points or 1.2 percent to 15,884 on Monday, suggesting a gap-up opening ahead on Dalal Street.
    Global markets
    Equities in other Asian markets jumped on Monday amid improved risk sentiment as oil rates eased, tempering fears of prolonged inflation and the accompanying aggressive Fed tightening. MSCI's broadest index of Asia Pacific shares outside Japan was up 1.7 percent at the last count.
    Japan's Nikkei was up one percent, China's Shanghai Composite 0.8 percent and Hong Kong's Hang Seng two percent.
    S&P 500 futures edged 0.2 percent lower. On Friday, Wall Street's three main surged following Europe and Asia. The S&P 500 rose 3.1 percent, the Dow Jones 2.7 percent and the tech stocks-heavy Nasdaq Composite 3.3 percent.
    What to expect on Dalal Street
    HDFC Securities' Shetti believes the short-term trend of the 50-scrip index remains positive. He sees the possibility of one more leg of correction from the highs of around 15,800-15,900 this week before a decisive breakout.
    Important levels to track
    The Nifty50 is more than two percent below its long-term simple moving average.
    Period (No. of sessions)Simple moving average
    Nifty50Sensex
    515,683.152,735.1
    1015,659.152,678.5
    2015,566.752,433.5
    5015,471.652,150.8
    10015,715.452,222.2
    20016,063.153,808.1
    Chavan expects a cluster of resistance in the 15,800-15,900-16,000 zone and immediate support in the 15,500-15,350-15,200 band.
    FII/DII activity
    Call/put open interest
    The maximum call open interest is accumulated at the strike price of 16,000, with 1.5 lakh contracts, and the next highest at 16,500, with 1.3 lakh contracts, according to exchange data. The maximum put open interest is at 15,500 and 14,500, with 1.3 lakh contracts each.
    This suggests strong resistance at 16,000 and immediate support at 15,500.
    Long build-up
    Here are five stocks that saw an increase in open interest as well as price:
    StockCurrent OICMPPrice change (%)OI change (%)
    CROMPTON2,812,700343.953.79%17.68%
    JKCEMENT424,0252,074.452.45%9.49%
    ESCORTS2,218,7001,5130.67%4.12%
    SYNGENE904,400569.82.56%2.44%
    ONGC38,165,050137.41.97%2.34%
    Long unwinding
    StockCurrent OICMPPrice change (%)OI change (%)
    TECHM20,179,800982.55-1.10%-11.57%
    MUTHOOTFIN3,864,750984.85-0.25%-9.89%
    INFY36,306,9001,445-0.75%-9.47%
    MPHASIS1,676,1502,259-2.48%-9.04%
    HDFCAMC3,204,8001,810.10-0.52%-7.53%
    (Decrease in open interest as well as price)
    Short covering
    StockCurrent OICMPPrice change (%)OI change (%)
    LALPATHLAB1,248,3752,034.202.14%-24.99%
    BHARATFORG7,031,250645.350.27%-18.70%
    ADANIPORTS60,945,000686.551.36%-17.79%
    ADANIENT19,482,0002,160.402.35%-17.77%
    JSWSTEEL34,233,3005702.15%-16.48%
    (Increase in price and decrease in open interest)
    Short build-up
    StockCurrent OICMPPrice change (%)OI change (%)
    ALKEM202,2003,003.45-1.44%1.58%
    LTTS1,301,4003,069.95-1.93%0.45%
    (Decrease in price and increase in open interest)
    52-week highs
    One stock in the BSE 500 universe — the broadest index on the bourse — hit the milestone: Mahindra & Mahindra (M&M).
    52-week lows
    A total of four stocks in the 500-strong index hit 52-week lows: Star Health, Hindustan Zinc, Gujarat State Petronet and FDC.
    Fear index
    The India VIX — which gauges the expectation of fear in the market — eased 1.6 percent to 20.6 on Friday.
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