Indian equity indices continued to climb on Friday after a day of respite, boosted by strength in most sectors. Financials and Oil & Gas were the main contributors to gains in major indices, which hit two-month closing highs.
What do the charts suggest for Dalal Street now?
Prepared for 18,000?
“Since the banking space has regained the upper hand, the rally should be considered healthy and as such, we will not be surprised to see 17,800 or even the psychological mark of 18,000 this week. On the other hand, 17 500 trailing 17,350 should now provide decent support, a drop below that should be used as a buying opportunity given the momentum,” Sameet Chavan, chief technical and derivatives analyst at Angel One, told CNBCTV18.com.
“With the frontline movers, traders should focus more on stocks in the cash segment, which are all set to make a real move in the coming days,” he said.
Here are the key things to know about the market ahead of the April 4 session:
Global Markets
Wall Street indexes rose 0.3 to 0.4 percent on Friday as the monthly U.S. jobs report pointed to a strong labor market. The jobs reading is likely to keep the Fed on track to maintain its hawkish policy.
Earlier in the day, the pan-European Stoxx 600 index rose half a percent as a rally in commodity-related stocks and banks helped investors shrug off concerns over economic growth and the inflation.
What to expect in Dalal Street
HDFC Securities’ Shetti believes momentum has picked up in the market after a slight consolidation move.
He expects the Nifty50 to head towards 17,800-18,000 this week before another round of minor corrections lower from the highs. He sees immediate support at 17,550.
“The Nifty50 has formed a bullish engulfing candlestick on the daily chart and settled above its 21-day exponential moving average…It is showing signs of near-term bullish strength,” said Sachin Gupta, AVP -Research at Choice Broking. .
Levels to watch
He highlighted the following levels:
| Index | Support | Resistance |
| Nifty50 | 17,470 | 17,800 |
| Clever bank | 36,600 | 37,800 |
FII/DII activity
Foreign Institutional Investors (FII) bought Indian shares worth Rs 1,909.8
crore on Friday, and Domestic Institutional Investors (DII) sold shares net worth Rs 183.8 crore, according to preliminary exchange data. This contrasts with the trend seen in the recent past.
The maximum call open interest is accrued at the strike price of 18,000, with over 86,400 contracts, and the maximum sell open interest at 17,500, with around 94,250 contracts, according to exchange data. provisional.
This confirms a major hurdle at 18,000 and strong support at 17,500.
Long build up
Here are five stocks that have seen an increase in open interest as well as price:
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| ELECTRICAL NETWORK | 2.97.10.143 | 225.6 | 3.58% | 17.56% |
| BATAINDIA | 13,92,600 | 2,006.05 | 1.62% | 16.86% |
| BEAUTIFUL | 3,04,07,600 | 216.2 | 1.91% | 14.27% |
| LICHSGFIN | 2,06,94,000 | 374.75 | 3.71% | 13.23% |
| IDEA | 47,42,50,000 | 10.2 | 4.08% | 12.38% |
Long relaxation
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| PERSISTENT | 2,91,900 | 4,748.70 | -0.76% | -7.76% |
| CIPLA | 76,92,100 | 1,021.20 | -0.37% | -0.03% |
(Decrease in open interest as well as price)
Short cover
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| ESCORTS | 1,360 | 205 | 16.28% | -100.00% |
| INDUSINDBK | 800 | 156 | 5.41% | -100.00% |
| SRTRANSEND | 1,140 | 83.35 | 34.87% | -65.50% |
| MFSL | 760 | 41.9 | 12.18% | -65.25% |
| NTPC | 136 | 8.75 | 105.88% | -53.70% |
(Increase in price and decrease in open interest)
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| ALKEM | 1,38,200 | 3,493.90 | -2.02% | 25.47% |
| ABB | 1,65,750 | 2,109.45 | -1.91% | 16.44% |
| IPCALAB | 8,02,800 | 1,025 | -1.28% | 14.01% |
| HEROMOTOCO | 37,07,100 | 2,256 | -2.26% | 12.89% |
| GUJGASLTD | 36,65,000 | 498.15 | -1.41% | 11.36% |
52 Week Highs
A total of 17 stocks on the BSE 500 – the stock market’s broadest index – hit 52-week highs:
| ADANIENT | GSFC |
| ADANIPOWER | GUJALKALI |
| ATGL | JKPAPER |
| CREDITACC | KEI |
| CUMMINSIND | INDIA |
| DELTACORP | ELECTRICAL NETWORK |
| GHCL | RATNAMANI |
| GNFC | RCF |
| SCHAEFFLER |
52 week lows
One stock hit a 52-week low: Procter & Gamble Health.
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