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Trade setup for Nov 2: As Nifty50 crosses a key hurdle, market poised for more upside

Trade setup for Nov 2: As Nifty50 crosses a key hurdle, market poised for more upside

Trade setup for Nov 2: As Nifty50 crosses a key hurdle, market poised for more upside
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By Sandeep Singh  Nov 2, 2022 8:00:02 AM IST (Updated)

Trade setup for Wednesday, November 2: One can expect more upside in the market as the Nifty50 taken out key resistance at 18,096 in a positive sign, say experts. Here's what the technical charts suggest.

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Indian equity benchmarks clocked 10-month closing highs on Tuesday led by gains in financial, IT, metal and healthcare stocks. Globally, investors await a key rate decision by the end of a two-day meeting of the Fed which begins later in the day.

What do the charts suggest for Dalal Street?
The Nifty50 has formed a small positive candle on the daily chart with minor upper and lower shadows, though the opening upside gap of the last two sessions remains intact, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. 
The 50-scrip index has sustained above a key hurdle at 18,096 in a positive sign and one can expect more upside, he said.
Time to buy the dip in Nifty Bank
"The Nifty Bank witnessed some selling pressure from higher levels and failed to close above 41,500," said Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities.
"A rise above 41,500-42,000 levels will lead to further short covering... The undertone remains bullish and one should have a buy approach near the support zone of 41,000-40,800," he said. 
Here are key things to know about the market ahead of the November 2 session:
SGX Nifty
Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — declined as much as 33.5 points or 0.2 percent to 18,221.5 ahead of the opening bell on Dalal Street.
Equities in other Asian markets saw mixed moves on Wednesday with a weak handover from Wall Street, after data indicated strength in the US jobs market that dimmed hopes the Fed might have enough reason to begin moderating the magnitude of its rate hikes. MSCI's broadest index of Asia Pacific shares outside Japan was flat at the last count.
Japan's Nikkei 225 was flat, China's Shanghai Composite up half a percent and Hong Kong's Hang Seng up 0.1 percent.
S&P 500 futures were up 0.2 percent, suggesting a positive opening ahead on Wall Street. On Tuesday, the three main US indices — the S&P 500, the Dow Jones and the Nasdaq Composite — finished 0.2-0.9 percent lower.
What to expect on Dalal Street
HDFC Securities' Shetti highlighted that there is no confirmation of any reversal pattern unfolding at the highs.
"The next upside levels to be watched are around 18,500 and immediate support at 18,080," he said.
Period (No. of sessions)Nifty50Nifty Bank
518,124.441,334.2
1018,105.941,394.7
2017,998.541,270.2
5017,809.141,133.7
10017,558.340,386.6
20017,348.639,586.7
Key levels to watch out for
The maximum call open interest is accumulated at the strike price of 18,400, with 1.4 lakh contracts, and the next highest at 18,200 and 18,500, with 1.3 lakh contracts each, according to provisional exchange data. The maximum put open interest is at 18,000 and 18,100, with 1.5 lakh contracts each, and at 17,500, with 1.4 lakh contracts.
This suggests an immediate hurdle at 18,200 and more resistance at 18,400, and immediate support at 18,100 followed by a strong base at the 18,000 mark.
FII/DII activity
Foreign institutional investors (FIIs) remained net buyers of Indian shares for a fourth straight session on Tuesday, according to provisional exchange data.
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Long build-up
Here are five stocks that saw an increase in open interest as well as price:
StockCurrent OICMPPrice change (%)OI change (%)
ALKEM254,4003,246.752.49%16.59%
BRITANNIA1,357,4003,817.400.80%11.55%
TORNTPHARM1,616,0001,691.052.18%10.77%
NTPC44,813,400182.15.20%9.55%
JKCEMENT413,5002,8213.78%9.07%
Long unwinding
StockCurrent OICMPPrice change (%)OI change (%)
MARUTI2,993,4009,479.05-0.78%-4.97%
LT9,434,7002,033.45-0.05%-4.97%
CROMPTON4,960,500362.9-0.15%-2.72%
HEROMOTOCO2,484,9002,678.35-0.14%-2.68%
MCX2,300,4001,524.10-1.40%-2.50%
(Increase in price and decrease in open interest)
Short covering
StockCurrent OICMPPrice change (%)OI change (%)
NMDC22,233,950105.254.99%-12.91%
AUBANK6,890,000610.54.07%-10.73%
ABBOTINDIA56,00019,659.901.60%-7.64%
ASTRAL1,405,5252,0791.82%-7.61%
VOLTAS4,529,5009083.22%-6.66%
(Increase in price and decrease in open interest)
Short build-up
StockCurrent OICMPPrice change (%)OI change (%)
M&MFIN20,200,000195-2.82%18.08%
AXISBANK39,498,000877-3.55%17.32%
INTELLECT3,108,000427.25-1.66%15.25%
WHIRLPOOL624,0501,568.10-0.89%13.12%
DELTACORP14,377,300223.65-0.40%12.08%
(Decrease in price and increase in open interest)
52-week highs
A total of 20 stocks in the BSE 500 universe — the broadest index on the bourse — reached the milestone.
ABFRLBHELEICHERMOTMAXHEALTH
ASTRAZENBLUESTARCOGODFRYPHLPNTPC
BANKBARODACANBKGRANULESSUNPHARMA
BHARATFORGCIPLAINDIANBTORNTPHARM
BHARTIARTLCUMMINSINDM&MTRENT
52-week lows
On the other hand, three stocks hit 52-week lows: Chemplast Sanmar, Intellect Design Arena and Medplus Health Services.
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