Can the Nifty50 hold 17,000? Discover the main market indices ahead of Monday’s session | Business News Today

What do the charts suggest for Dalal Street now?

The Nifty50 formed a reasonable negative candle on the daily chart with a minor bottom shadow, overlapping yesterday’s small doji candle, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

“This pattern indicates the formation of a bearish swallowing pattern at the swing high, suggesting a lower reversal,” he said.

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Not out of the woods

The market appears to be in a neutral zone from the downtrend, said Sameet Chavan, chief technical and derivatives analyst at Angel One.

“If the bulls are to regain strength, the 17,200 to 17,300 levels must be broken with some authority. This development will confirm the completion of the recent corrective phase and the bulls would likely be back in control thereafter. If this has to happen, the banking space, which is lagging slightly behind in the recovery, must intensify. By then, we are not quite out of the woods yet, “he added. .

Here are the key things to know about the market ahead of Monday’s session:

Global markets

The three main Wall Street indices ended up 0.6 to 0.9% on Thursday, improving the mood ahead of the Christmas holidays. Encouraging developments have allayed investor concerns about the economic impact of the Omicron variant.

European stocks closed lower in light holiday trading on Friday. The pan-European Stoxx 600 index jumped 0.9%.

What to expect on Dalal Street

Shetti of HDFC Securities believes the recent pullback rally ended around strong resistance at the 17,150-17,200 levels. “There is the possibility of further weakness up to 16,700-16,650 levels this week Any bullish rebound from here could be an opportunity to ‘sell up’, “he said.

Angel One’s Chavan has maintained a cautious stance for over 18,000 levels. “It certainly worked well for us as the Nifty eventually entered our intended target area of ​​16,500 to 16,200 levels… The Nifty has maintained its position beyond 17,000, indicating that the bears have lost momentum, ”he added.

Independent technical analyst Manish Shah suggests avoiding selling in the market for now.

The Nifty must break through the 17,300-17,320 with a candle of strong conviction, which would break the downtrend line and set the stage for a rally to the 17,500-17,600 levels. As we move into the final week of 2021 , the Nifty may well show a gathering of Santa Claus to light up the mood in the market, ”he said.

Maximum open call interest is accrued at the strike price of 17,500, with contracts of 1.2 lakh, and the second highest at 17,200, with contracts of 1.1 lakh. Maximum open interest is placed at 16,500, with contracts of 1.2 lakh, according to exchange data. This indicates that the index is approaching immediate resistance at 17,200, followed by a major hurdle at 17,500 and has support at 16,500.

Here are two stocks that saw an increase in open interest as well as price, suggesting an accumulation of long positions:

Long process

(Decrease in open interest as well as price)

Short cover

(Decrease in open interest and increase in price)

Short construction

(Increase in open interest and decrease in price)

In the BSE 500 index, Infosys, Tech Mahindra, KPIT Tech, Persistent, Radico Khaitan, Schaeffler, Allcargo, Birlasoft and ESAB hit record highs in 52 weeks.

52 week trough

One stock in the largest stock market index hit its lowest level in 52 weeks: Indostar Capital Finance.

Volatility gauge

NSE’s India VIX index – which measures expectations of volatility in the market – rose by two percent to 16.2 Friday, after falling for three consecutive days.