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Trade setup for Nov 29: Nifty50 scales a fresh peak and the bulls may just take it even higher soon

Trade setup for Nov 29: Nifty50 scales a fresh peak and the bulls may just take it even higher soon

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By Sandeep Singh  Nov 29, 2022 8:10:42 AM IST (Updated)

Trade setup for Tuesday, November 29: The Nifty50 may be poised for even higher levels in the near term, having scaled record highs on Monday, say experts. Here's what the technical charts suggest.

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Indian equity benchmarks soared to record closing highs on Monday, with the Nifty50 surpassing its lifetime high of October 2021. Gains in oil & gas, auto and select financial stocks drove the headline indices higher — a fifth back-to-back session of gains.

What do the charts suggest for Dalal Street?

The Nifty50 has formed a long bull candle on the daily chart, reflecting market momentum, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"The 50-scrip index appears to be nearing a new higher top of a higher-top-and-higher-bottom pattern. There is no indication of any reversal at the highs," he said. 
Time to buy the dip in Nifty Bank
The Nifty Bank continues to be in a positive trend, according to Kunal Shah, Senior Technical Analyst at LKP Securities.
"The banking index is stuck in a range of 42,500-43,500 and a breakout on either side will lead to a directional move. The undertone remains bullish and one should have a buy-on-dip approach with immediate support at 42,800," he said.
Here are key things to know about the market ahead of the November 29 session:
SGX Nifty
On Tuesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 111.5 points or 0.6 percent to 18,617.5, suggesting a lower opening ahead on Dalal Street.
 Equities in other Asian markets bagged sharp gains on Tuesday, shrugging off overnight losses on Wall Street, with MSCI's broadest index of Asia Pacific shares outside Japan trading 1.6 percent higher at the last count. Investors closely tracked updates on a rising social unrest in China against stricter COVID policies.
Japan's Nikkei 225 was down 0.2 percent. China's Shanghai Composite surged 1.9 percent and Hong Kong's Hang Seng 3.5 percent.
S&P 500 futures were up 0.2 percent. The three main US indices finished around 1.5 percent lower as China updates fuelled concerns about economic growth.
What to expect on Dalal Street
HDFC Securities' Shetti believes the Nifty50 is in a sharp uptrend on the weekly chart.
According to him, the next upside target to be watched for the index is at 18,955, which could be achieved in the next 1-2 weeks. He sees immediate support at 18,350.
 
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 18,800, with 1.3 lakh, according to provisional exchange data. The maximum put open interest is at 18,000, with 2.1 lakh contracts, and at 18,400, with 1.5 lakh.
This suggests immediate resistance at 18,800 and a strong base at the 18,000 mark.
FII/DII activity
Foreign institutional investors (FIIs) continued to be net purchasers of Indian shares for a third straight trading day on Monday after four days of selling, according to provisional exchange data.
Dalal Street is on track to finish November with net foreign fund inflows — a first calendar month of inflows since August.
Long build-up
Here are five stocks that saw an increase in open interest as well as price:
StockCurrent OICMPPrice changeOI change
APOLLOTYRE14,602,000314.856.33%34.11%
DELTACORP17,079,800233.14.53%13.83%
ICICIPRULI15,993,0004590.48%13.27%
TVSMOTOR4,778,9001,0612.07%9.55%
UBL751,6001,694.951.41%9.47%
Long unwinding
StockCurrent OICMPPrice changeOI change
PFC49,221,800135.7-1.56%-3.80%
NMDC28,093,100117.65-1.55%-2.04%
ESCORTS1,169,5752,275-0.37%-1.15%
SAIL106,560,00082.8-1.49%-1.09%
HDFCAMC1,393,5002,172-0.31%-0.97%
(Increase in price and decrease in open interest)
Short covering
StockCurrent OICMPPrice changeOI change
BSOFT9,521,200300.81.62%-4.44%
ATUL128,0258,425.752.08%-2.99%
MANAPPURAM38,076,000114.850.35%-2.84%
BANDHANBNK56,853,000224.81.51%-2.72%
LTTS1,073,0003,8480.09%-2.57%
(Increase in price and decrease in open interest)
Short build-up
StockCurrent OICMPPrice changeOI change
SRTRANSFIN4,053,0001,244.05-1.25%23.48%
VEDL30,449,750313.8-1.61%13.15%
FSL14,138,800110.05-0.27%7.69%
COALINDIA26,455,800231.95-0.62%6.89%
IEX48,802,500148.7-2.14%6.49%
(Decrease in price and increase in open interest)
52-week highs
A total of 25 stocks in the BSE 500 universe — the broadest index on the bourse — touched the milestone:
AEGISLOGCUMMINSINDGICREIRCONRCF
APOLLOTYREENGINERSINHUDCOIRFCRECLTD
BHELESCORTSICICIBANKKALPATPOWRREDINGTON
CEATLTDEXIDEINDIDFCNCCRVNL
CGPOWERGESHIPIDFCFIRSTBPFCSJVN
52-week lows
No stock from the basket hit a 52-week low.
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