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    Trade setup for Sept 9: For Nifty50, a decisive move above 17,800 may open up more upside ahead

    Trade setup for Sept 9: For Nifty50, a decisive move above 17,800 may open up more upside ahead

    Trade setup for Sept 9: For Nifty50, a decisive move above 17,800 may open up more upside ahead
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    By Sandeep Singh   IST (Updated)

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    Trade setup for Friday, September 9: A sustainable move above 17,800 may be followed by a sharp upmove towards 18,200 in the near term, say experts. Here's what the technical charts suggest.

    Indian equity benchmarks scaled three-week closing highs on Thursday, with the Nifty50 coming within one point of key resistance at 17,800 boosted by financial and IT shares.
    The 50-scrip index stands more than one percent above its long-term simple moving average.
    What do the charts suggest for Dalal Street?
    The Nifty50 has formed a small positive candle on the daily chart with a minor lower shadow, sitting at the upper end of its sideways range of the past 6-7 sessions, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
    A sustainable move above the crucial 17,800 level above could open up a sharp upmove ahead, he said.
    More upside on the cards for Nifty Bank 
    The Nifty Bank's move to surpass the crucial hurdle of 40,000 decisively suggests room for further upside, said Kunal Shah, Senior Technical Analyst at LKP Securities.
    "Momentum oscillators are in a strong buy zone, which confirms internal strength. The index is likely to test 41,000-41,500 levels and lower-end support remains at 39,000," he said.
    Here are key things to know about the market ahead of the September 9 session:
    SGX Nifty
    On Friday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — rose as much as 96 points or half a percent to 17,915.5 ahead of the opening bell on Dalal Street.
    Equities in other Asian markets began the day stronger following a banking- and healthcare-led rise on Wall Street overnight, as investors digested hawkish remarks from Fed Chair Jerome Powell policymakers that cemented bets of a large interest rate hike later this month.
    MSCI's broadest index of Asia Pacific shares outside Japan was up 0.8 percent at the last count. Japan's Nikkei 225 was up 0.6 percent, China's Shanghai Composite 0.4 percent and Hong Kong's Hang Seng 2.1 percent.
    S&P 500 futures were up 0.3 percent. On Thursday, the three main US indices climbed up 0.6-0.7 percent.
    What to expect on Dalal Street?
    HDFC Securities' Shetti believes the Nifty50's short-term trend remains positive.
    "A sustainable move above 17,800 is likely to lead to sharp momentum towards 18,200 in the near term. Immediate support is placed at 17,650," he said.
    Key moving averages
    Both Nifty50 and Nifty Bank stand above all of their five-, 10-, 20-, 50-, 100- and 200-day simple moving averages.
    Period (No. of sessions)SMA
    Nifty50Nifty Bank
    517,770.6
    40,151.9
    1017,738.239,938.9
    2017,684.639,758.8
    5017,644.639,636.7
    10017,591
    39,206.6
    20017,595.638,894.3
    FII/DII activity
    Foreign institutional investors (FIIs) continued to net purchase Indian shares for a third straight day on Thursday, in line with the trend in the past few weeks.
    Image
    Last month, 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.
    Call/put open interest
    The maximum call open interest is accumulated at the strike price of 18,000, with 1.5 lakh contracts, and the next highest at 17,900, with 1.3 lakh contracts, according to exchange data. On the other hand, the maximum put open interest is at 17,000, with 1.4 lakh contracts, and at 17,300, with 1.1 lakh.
    This indicates immediate resistance at 17,900 followed by a major hurdle at 18,000, and immediate support at 17,300 followed by a strong base at 17,000.
    Long build-up
    Here are five stocks that saw an increase in open interest as well as price:
    StockCurrent OICMPPrice change (%)OI change (%)
    ASTRAL849,4752,4410.44%18.58%
    SHREECEM313,12524,1005.73%14.37%
    IOC83,401,50073.452.16%11.94%
    HINDPETRO19,375,200252.453.04%10.77%
    AXISBANK43,020,000784.53.61%10.68%
    Long unwinding
    StockCurrent OICMPPrice change (%)OI change (%)
    RAIN11,511,500202.3-1.29%-2.80%
    IDEA639,870,0009.75-1.02%-2.14%
    PFC53,059,600116.8-1.31%-2.00%
    EXIDEIND25,412,400170.3-1.10%-1.43%
    CROMPTON4,531,500412.25-1.01%-1.06%
    (Increase in price and decrease in open interest)
    Short covering
    StockCurrent OICMPPrice change (%)OI change (%)
    RAMCOCEM4,245,750782.051.32%-3.06%
    CUB9,175,000177.553.17%-2.34%
    ALKEM466,4003,139.901.15%-1.37%
    DELTACORP18,903,7002110.52%-1.23%
    BHEL117,180,00062.91.29%-0.96%
    (Increase in price and decrease in open interest)
    Short build-up
    StockCurrent OICMPPrice change (%)OI change (%)
    INDIGO2,506,8001,957.65-0.98%114.18%
    ICICIGI3,755,7251,236.70-1.47%12.14%
    TATAMOTORS65,249,325443.95-0.74%11.78%
    PERSISTENT658,5003,302.45-0.56%8.36%
    FEDERALBNK78,040,000118.7-0.38%7.88%
    (Decrease in price and increase in open interest)
    52-week highs
    A total of 32 stocks in the broadest index on BSE — the BSE 500 — hit 52-week highs:
    ABFRLBANKBARODAKSBSKFINDIA
    ADANIENTCOALINDIAM&MSUMICHEM
    AMBUJACEMCOCHINSHIPM&MFINTIINDIA
    APOLLOTYREGRINDWELLMAHLIFETIMKEN
    ASAHIINDIAICICIBANKMAZDOCKVBL
    ASTERDMIDFCPATANJALIVINATIORGA
    ASTRALINDIANBSBILIFEWELCORP
    BAJAJHLDNGITCSCHAEFFLERYESBANK
    52-week lows 
    On the flipside, Natco Pharma and Sanofi were the only stock in the 500-scrip pack to hit 52-week lows.
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