HomeMarket NewsTrade setup for Sept 28: The bulls help Nifty50 defend 17,000 but more weakness likely up ahead

Trade setup for Sept 28: The bulls help Nifty50 defend 17,000 but more weakness likely up ahead

Trade setup for Wednesday, September 28: Experts say one can expect weakness to persist in the market in the near term. Here's what the technical charts suggest.

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By Sandeep Singh  September 28, 2022, 7:43:09 AM IST (Updated)

4 Min Read
Trade setup for Sept 28: The bulls help Nifty50 defend 17,000 but more weakness likely up ahead





Indian equity benchmarks recovered most of the intraday losses in a choppy session on Tuesday, aided by gains in heavyweights such as Reliance, TCS and Infosys, and in healthcare stocks. Losses in financial stocks such as the HDFC twins, SBI and ICICI Bank, however, came in the way of the headline indices finishing the day in the green.


Investors awaited the outcome of a key meeting of the RBI's rate-setting panel due later this week for domestic cues.






What do the charts suggest for Dalal Street?








"The pattern indicates lack of strength in the intraday bounce. This is not a good sign and one may expect further weakness in the short term," he said.


























Key moving averages






































Period (No. of sessions)SMA
517,039.1
1017,036.3
2017,110.9
5017,463.9
10017,666.3
20017,635.8




FII/DII activity

Foreign institutional investors (FIIs) remained net sellers of Indian shares for the fifth trading day in a row on Tuesday, pulling out Rs 2,824 crore from Dalal Street, according to provisional exchange data.



In August, they made net purchases to the tune of Rs 22,025.8 crore — the first month of net inflows after 10 straight months of outflows, whereas domestic institutional investors (DIIs) net sold shares worth Rs 7,068.9 crore.

ALSO READ: 'Chakravyuh' moment in Indian market



Call/put open interest


The maximum call open interest is accumulated at the strike prices of 18,000 and 17,500, with 1.7 lakh contracts each, and the next highest at 17,600 and 17,700, with 1.4 lakh contracts each, according to exchange data.


On the other hand, the maximum put open interest is at 16,000 and 16,500, with 1.2 lakh contracts each, and at 17,000, with 1.1 lakh.


This suggests a strong base after the 17,000 mark at 16,500, and a tough hurdle at 17,500.


Long build-up




Here are five stocks that saw an increase in open interest as well as price:













































StockCurrent OICMPPrice changeOI change
CIPLA5,070,0001,096.153.03%39.68%
PIIND1,082,5003,025.450.71%22.03%
TORNTPOWER3,439,500508.72.58%21.28%
COLPAL1,921,8501,578.700.63%20.72%
NAUKRI979,3753,910.805.08%18.86%

Long unwinding













































StockCurrent OICMPPrice changeOI change
IBULHSGFIN13,576,000114-3.68%-28.99%
FSL11,180,000102.85-1.11%-27.26%
CANFINHOME2,796,300462-3.15%-25.07%
JSWSTEEL16,676,550640.9-0.68%-19.67%
SRTRANSFIN2,894,4001,170.50-0.54%-19.01%

(Increase in price and decrease in open interest)


Short covering
















































StockCurrent OICMPPrice change (%)OI change (%)
AMARAJABAT3,315,000489.20.97%-26.24%
INTELLECT1,182,750538.250.43%-22.95%
ESCORTS1,025,2002,041.052.03%-21.30%
GUJGASLTD4,062,5005196.98%-20.95%
ABFRL6,676,8003221.32%-20.72%

(Increase in price and decrease in open interest)



Short build-up
















































StockCurrent OICMPPrice change (%)OI change (%)
ATUL148,8008,915.90-0.36%28.02%
APOLLOHOSP973,7504,252.90-0.81%27.06%
SBILIFE4,647,0001,244-1.14%24.24%
MARUTI2,837,5008,771.25-0.63%21.77%
SIEMENS1,260,6002,722.35-1.63%20.90%

(Decrease in price and increase in open interest)


52-week highs


Two stocks in the BSE 500 universe — the broadest index on the bourse — scaled the milestone: Cipla and Metro Brands.


52-week lows 


On the flipside, 15 stocks hit 52-week lows:































ALOKTEXTGRAPHITENATCOPHARM
APLLTDIEXSHILPAMED
AUROPHARMAJCHACSONACOMS
BIOCONLICISUVENPHAR
GLANDMASTEKSYMPHONY



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