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    Trade setup for June 28: Nifty50 may hit a pause after taking out key hurdle of 15,800

    Trade setup for June 28: Nifty50 may hit a pause after taking out key hurdle of 15,800

    Trade setup for June 28: Nifty50 may hit a pause after taking out key hurdle of 15,800
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    By Sandeep Singh   IST (Published)

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    Trade setup for Tuesday, June 28: The Nifty50 may halt its rally after crossing key resistance at 15,800, say experts. Here's what the technical charts suggest.

    Indian equity benchmarks continued to rise for a third straight session on Monday led by financial, IT and FMCG shares, joining a rally across global markets as easing crude oil rates helped investors take their minds off fears about inflation and slowing growth.
    What do the charts suggest for Dalal Street now?
    The Nifty50 has formed a reasonable negative candle on the daily chart, taking out the crucial resistance level of 15,800, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
    However, he doubts the 50-scrip index could sustain above the 15,800 mark for a long period.
    Nifty50 not out of the woods
    The market is near important resistance, with the chart texture suggesting a strong possibility of quick intraday correction, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
    "While the change in mood has come as a major relief, the optimism may remain for a few more sessions before the market turns volatile amid concerns of a slowing global economy due to rate hikes and continuing foreign fund outflows," he said.
    Here are key things to know about the market ahead of the June 28 session:
    Global markets
    Wall Street's three main indices were a mixed bag on Monday as a rally last week on easing concerns over inflation lost steam with high-growth stocks leading declines.
    The S&P 500 was flat at the last count. The Dow Jones edged 0.1 percent higher but the tech stocks-heavy Nasdaq Composite fell 0.4 percent.
    European shares managed to hold on to opening gains. The pan-European Stoxx 600 index was up 0.6 percent.
    What to expect on Dalal Street
    HDFC Securities' Shetti is of the view that the Nifty's short-term trend remains positive.
    "A display of lack of strength to sustain the highs during the breakout is likely to result in further consolidation or downward correction from the highs. On the other side, a decisive upmove above 15,900 could open further upside towards the 16,200 hurdle," he said.
    Important levels to track
    The Nifty50 is about eight percent below its long-term simple moving average.
    Period (No. of sessions)Simple moving average
    Nifty50Sensex
    515,62852,501.9
    1015,556.952,219.9
    2015,984.253,643.9
    5016,323.354,631.9
    10016,744.456,040.8
    20017,191.557,612.4
    Chouhan expects immediate resistance for intraday traders at 15,900 and 15,925, below which, he sees the correction wave continuing till the 15,750-15,700 band.
    "Above 15,925, the index could move up to 16,000. Contrarian traders can take a long bet near 15,700 with a strict support stop loss at 15,660," he suggested.
    FII/DII activity
    Call/put open interest
    The maximum call open interest is accumulated at the strike price of 16,000 and 16,500, with 1.7 lakh contracts each, according to exchange data. The maximum put open interest is at 15,000, with 1.7 lakh contracts, and the next highest at 15,500, with 1.4 lakh.
    This suggests strong resistance at 16,000 and immediate support at 15,500.
    Long build-up
    Here are two stocks that saw an increase in open interest as well as price:
    StockCurrent OICMPPrice change (%)OI change (%)
    IDEA276,290,0008.91.14%23.38%
    IDFCFIRSTB115,035,00032.253.70%58.45%
    Long unwinding
    StockCurrent OICMPPrice change (%)OI change (%)
    ADANIPORTS50,105,000685.8-0.20%-56.59%
    BRITANNIA1,494,0003,463.50-0.48%-42.06%
    VOLTAS3,766,500983.45-0.81%-41.30%
    COLPAL2,297,0501,508-0.66%-37.19%
    HEROMOTOCO3,433,8002,758.10-0.01%-35.60%
    (Decrease in open interest as well as price)
    Short covering
    StockCurrent OICMPPrice change (%)OI change (%)
    GRASIM11,362,0001,349.601.80%-54.31%
    LALPATHLAB936,3752,1073.79%-48.89%
    JUBLFOOD8,409,375541.651.29%-43.98%
    RAMCOCEM3,031,950627.052.74%-43.34%
    SHREECEM263,02519,096.401.76%-43.27%
    (Increase in price and decrease in open interest)
    Short build-up
    StockCurrent OICMPPrice change (%)OI change (%)
    BANDHANBNK10,515,600285.2-0.85%151.49%
    (Decrease in price and increase in open interest)
    52-week highs
    One stock in the BSE 500 universe — the broadest index on the bourse — touched the milestone: Mahindra & Mahindra (M&M).
    52-week lows
    Two stocks in the 500-strong index hit 52-week lows: Star Health and V-Mart Retail.
    Fear index
    The India VIX — which gauges the expectation of fear in the market — rose 2.2 percent to 21 on Monday.
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