homemarket NewsTrade setup for Nov 28: Nifty50 may build on momentum as the bulls take it past 18,500 decisively

Trade setup for Nov 28: Nifty50 may build on momentum as the bulls take it past 18,500 decisively

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By Sandeep Singh  Nov 28, 2022 7:54:33 AM IST (Updated)

Trade setup for Monday, November 28: According to experts, a sustainable move for the Nifty50 above 18,600 is likely to pull continue towards a record 18,950 in the near term. Here's what the technical charts suggest.

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Indian equity benchmarks finished a choppy session barely in the green on Friday, as gains in oil & gas, IT and auto shares were offset by losses in financial and FMCG stocks.
Globally, investors remained on the back foot amid concerns that a prolonged period of rising benchmark interest rates will hamper economic growth.

What do the charts suggest for Dalal Street?

The Nifty50 has formed a small negative candle on the daily chart with a minor lower shadow, reflecting a breather in the market after Friday's sharp upmove, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
This could be considered an uptrend continuation pattern, he said.
More upside on the cards for Nifty Bank
Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, is of the view that the ongoing price action in the Nifty Bank suggests the Nifty Bank is likely to continue momentum. 
"The unfilled gap of 42,550-42,500 levels is likely to cushion any intraweek blip while the bullish gap present around the 42,000 is likely to act as a sheet anchor. On the flipside, the fresh breakout has opened up the potential for the banking index to march towards the 43,500-44,000 zone in the coming period," he told CNBCTV18.com
He sees any minor correction in the index as an opportunity to add fresh longs.
Here are key things to know about the market ahead of the November 28 session:
SGX Nifty
On Monday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — dropped as much as 99.5 points or 0.5 percent to 18,561.5 ahead of the opening bell on Dalal Street.
Equities in other Asian markets began the week lower amid a growing unrest in China over COVID-related restrictions, with MSCI's broadest index of Asia Pacific shares outside Japan trading down 2.3 percent at the last count. Japan's Nikkei 225 was down 0.6 percent, China's Shanghai Composite 1.7 percent and Hong Kong's Hang Seng 3.8 percent.
S&P 500 futures were down 0.7 percent. On Friday, the three Wall Street indices succumbed to selling pressure amid weakness in Apple shares in a holiday-truncated trading session. The S&P 500 fell marginally, and the Dow Jones and the Nasdaq Composite 0.5 percent each.
What to expect on Dalal Street
HDFC Securities' Shetti believes the Nifty50 continues to be in a positive underlying trend. The index has surpassed crucial resistance last week, and is expected to move to all-time highs above 18,606 this week, he said.
"A sustainable move above 18,600 is likely to pull the 50-scrip index towards a milestone of 18,950 in the near term," Shetti added.
 
Key levels to watch out for
The maximum call open interest is accumulated at the strike price of 19,000, with 1.6 lakh contracts, and the next highest at 18,600, with almost 97,000 contracts, according to provisional exchange data. The maximum put open interest is at 18,300, with 1.4 lakh contracts, and at 18,500 and 18,400, with 1.2 lakh contracts each.
This suggests immediate resistance at 18,600 and a cushion at the 18,400-18,500 band.
FII/DII activity
Foreign institutional investors (FIIs) continued to be net purchasers of Indian shares on Friday after four days of selling, according to provisional exchange data.
Long build-up
Here are five stocks that saw an increase in open interest as well as price:
StockCurrent OICMPPrice change (%)OI change (%)
BHEL100,548,00083.0510%26.22%
ESCORTS974,8752,282.954.63%19.97%
WHIRLPOOL656,6001,530.951.92%17.86%
L&TFH44,994,80887.855.59%14.66%
RBLBANK43,070,000151.45.76%14.60%
Long unwinding
StockCurrent OICMPPrice change (%)OI change (%)
APOLLOHOSP1,675,5004,825-0.42%-17.32%
ICICIBANK81,481,125937.15-0.83%-5.18%
INTELLECT5,151,000446.9-0.73%-2.65%
COFORGE632,2503,888.15-0.07%-2.18%
GODREJCP5,813,000866.65-0.32%-2.03%
(Increase in price and decrease in open interest)
Short covering
StockCurrent OICMPPrice change (%)OI change (%)
HDFCLIFE16,080,900591.12.62%-8.91%
ZYDUSLIFE10,236,600404.42.25%-7.30%
PERSISTENT569,7003,9911.71%-5.50%
CUB7,155,000188.251.43%-5.10%
IGL10,462,375434.653.49%-4.17%
(Increase in price and decrease in open interest)
Short build-up
StockCurrent OICMPPrice change (%)OI change (%)
GUJGASLTD3,168,750493.6-0.65%29.39%
ICICIPRULI13,120,500457.5-2.03%21.89%
SRTRANSFIN3,591,0001,257.85-2.22%12.87%
SIEMENS1,905,7502,800.75-1.57%6.72%
TVSMOTOR4,478,6001,038.25-1.45%6.71%
(Decrease in price and increase in open interest)
52-week highs
A total of 27 stocks in the BSE 500 universe — the broadest index on the bourse — touched the milestone:
AEGISLOGENGINERSINPNB
BANKBARODAESCORTSPSB
BANKINDIAGESHIPRECLTD
BHARTIARTLHALREDINGTON
BHELICICIBANKRVNL
CANBKIIFLUCOBANK
CEATLTDIRFCUNIONBANK
CGPOWERLTVSTIND
CUMMINSINDPFC
52-week lows
On the other hand, four stocks hit 52-week lows: Aurobindo Pharma, Motilal Oswal Financial Services, Natco Pharma and Quess Corp.
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