Homemarket News

Trade setup for Nov 21: Nifty50 defends 18,300 but more of sideways action on the cards

Trade setup for Nov 21: Nifty50 defends 18,300 but more of sideways action on the cards

Trade setup for Nov 21: Nifty50 defends 18,300 but more of sideways action on the cards
Read Time
4 Min(s) Read
Profile image

By Sandeep Singh  Nov 21, 2022 7:46:45 AM IST (Updated)

Trade setup for Monday, November 21: More consolidation or minor weakness in the Nifty50 could find support around 18,100, say experts.  Here's what the technical charts suggest.

Recommended Articles

View All

Indian equity benchmarks finished a choppy session with minor losses on Friday, as losses in auto, financial and oil & gas shares weighed on Dalal Street though gains in IT stocks lent some support.

Caution persisted among investors globally amid concerns about the impact of aggressive hikes in COVID-era interest rates on economic growth.

What do the charts suggest for Dalal Street?

The Nifty50 has formed a reasonable negative candle on the daily chart with a long lower shadow, reflecting the emergence of buying interest at the lows, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The 50-scrip has taken support at  its 10-day exponential moving average, he pointed out.
A tough hurdle awaits Nifty Bank 
"In order for the market to regain momentum, the bank index will have to rise above 42,600-42,700 levels, where an uptrend is expected to resume," said Kunal Shah, Senior Technical Analyst at LKP Securities.
"The bears will watch for 42,000 on the downside, a level which if breached will lead to further downside towards 41,500," he said.
Here are key things to know about the market ahead of the November 21 session:
Singapore Exchange
On Monday, Singapore Exchange (SGX) — an early indicator of the Nifty index — fell as much as 97.5 points or 0.5 percent to 18,250 ahead of the opening bell on Dalal Street.
Equities in other Asian markets began the week sharply lower as oil prices slumped on concerns about the economic fallout from fresh COVID restrictions in China amid resurgent infections in Beijing. MSCI's broadest index of Asia Pacific shares outside Japan was down 1.6 percent at the last count.
Japan's Nikkei was down 0.1 percent, China's Shanghai Composite 1.2 percent and Hong Kong's Hang Seng 2.8 percent.
S&&P 500 futures were down 0.4 percent, suggesting a weak start ahead on Wall Street. On Friday, the S&P 500 and the Nasdaq finished a choppy session about half a percent higher as gains in defensive shares outweighed losses in energy shares. The Dow Jones ended barely up.
What to expect on Dalal Street
HDFC Securities' Shetti believes more consolidation or minor weakness in the Nifty50 could find support around 18,100.
"We expect a bounce from the lows," he said. 
Key levels to watch out for
The maximum call open interest is accumulated at the strike price of 18,400, with 2.1 lakh contracts, and the next highest at 19,000, with 1.8 lakh, according to provisional exchange data. The maximum put open interest is at 18,300, with 1.4 lakh contracts, and at 18,000, with 1.3 lakh.
This suggests a tough hurdle at 18,400 and strong support at 18,300.
FII/DII activity
Foreign institutional investors (FIIs) remained net purchasers of Indian shares for a second straight day on Friday following two days of selling, according to provisional exchange data.
Image
Long build-up
Here's one stock that saw an increase in open interest as well as price:
StockCurrent OICMPPrice change (%)OI change (%)
IGL10,575,125420.31.58%1.51%
Long unwinding
StockCurrent OICMPPrice change (%)OI change (%)
LTI1,034,5504,898.10-0.73%-17.86%
SRTRANSFIN2,976,6001,252.10-2.22%-17.40%
APOLLOHOSP1,754,2504,392.05-0.60%-16.84%
ABFRL11,845,600306.5-1.43%-14.42%
HAL3,905,9252,623-1.73%-13.75%
(Increase in price and decrease in open interest)
Short covering
StockCurrent OICMPPrice change (%)OI change (%)
PNB213,184,00045.82.81%-38.43%
NMDC28,267,300111.75.13%-18.50%
ICICIBANK84,324,625922.90.18%-18.03%
BSOFT9,724,000286.153.49%-13.82%
TECHM11,529,6001,062.500.24%-12.29%
(Increase in price and decrease in open interest)
Short build-up
StockCurrent OICMPPrice change (%)OI change (%)
POLYCAB933,3002,541.30-1.50%9.87%
ONGC38,981,250142.75-0.56%9.03%
INDIAMART250,0504,478.60-2.45%2.40%
IPCALAB1,753,050863.75-0.39%1.71%
AARTIIND2,764,200649.8-0.30%0.58%
(Decrease in price and increase in open interest)
52-week highs
 
A total of 16 stocks in the BSE 500 universe — the broadest index on the bourse — reached the milestone:
AKZOINDIAGESHIPJBCHEPHARMSKFINDIA
BHARTIARTLGODFRYPHLPLEMONTREETIMKEN
ENGINERSINIIFLMAHABANKUCOBANK
EXIDEINDINDIANBPNBUNIONBANK
52-week lows
Eleven stocks hit 52-week lows:
BANDHANBNKQUESSSIS
GLAXORELAXOSUDARSCHEM
INDIGOPNTSROSSARIVOLTAS
MASTEKSHILPAMED
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!