Nifty50 may be bracing for a pullback

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Benchmarks for Indian equities ended a choppy session down slightly on Friday, extending losses to the sixth consecutive session, led by weakness in IT stocks, although strength in financial stocks limited the decline.

Global markets showed signs of retreating, but worries about aggressive interest rate hikes in the COVID era and their impact on economic growth kept investors on the back foot.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed a small positive candle on the daily chart with upper and lower shadowsaccording to Nagaraj Shetti, technical research analyst at HDFC Securities.

He sees the possibility of a minor pullback from the current level or from lows.

A key level to watch in Nifty Bank

Nifty Bank appears to be in oversold territory after bulls and bears struggled on Friday, said Kunal Shah, senior technical and derivatives analyst at LKP Securities.

“If the banking index holds support at 32,500, it may see a rebound towards 33,500. If exceeded, it could see another wave of selling towards 30,000,” he said.

Here are the key things to know about the market ahead of the June 20 session:

Global Markets

U.S. stocks were broadly higher on Friday as investors headed into a long weekend, although caution remains amid growing fears of a recession as central banks scramble to tackle high inflation for decades. The S&P 500 edged up 0.2% and the tech-heavy Nasdaq Composite jumped 1.4%, although the Dow fell 0.1%.

Earlier in the day, European markets rose with the Stoxx 600 gaining 0.1%.

What to expect in Dalal Street

HDFC Securities’ Shetti believes that any rebound in the market can be used as a short-term selling opportunity.

“We can expect a crucial resistance at 15,600 for the Nifty50, which should not be broken soon. After a slight rebound, the index could drop to 15,000-14,800 levels in the short term,” he said. -he declares.

Important levels to follow

In a strong bearish sign, Nifty50 and Nifty Bank are 11% below their long-term simple moving averages.

Period (Nb of sessions) Simple moving average
Nifty50 Clever bank
5 15,570.6 33,083.3
ten 15,987.5 34,023.8
20 16,187.2 34,582.4
50 16,571.8 35,234
100 16,845.4 35,975.2
200 17,239.5 36,761.2

Palak Kothari, Research Associates at Choice Broking, highlighted the key levels of resistance and support:

Index Support Resistance
Nifty50 15,000 15,500
Clever bank 32,300 33,800

FII/DII activity

Open call/sell interest

The maximum call open interest is accrued at the strike price of 16,000, with 1.3 lakh contracts, and the next highest at 16,300, with 1.2 lakh contracts, according to data. ‘exchange. The maximum open interest is 15,000, with almost 82,000 contracts, and 14,500, with 79,000 contracts.

This suggests strong resistance at 16,000 followed by 16,300 and immediate support at 15,000.

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

Store Current IO CPM Price change (%) Change in OI (%)
HAL 1,539,475 1,840.20 2.49% 21.17%
RECLTD 24,840,000 112.95 1.03% 6.62%
SRTRANSEND 3,081,200 1,143.10 1.48% 5.54%
CHOLAFINE 8,143,750 636.2 2.28% 3.22%
BHARATFORG 7,057,500 629.8 0.26% 2.92%

Long relaxation

Store Current IO CPM Price change (%) Change in OI (%)
GUJGASLTD 5,355,000 414.5 -2.26% -20.19%
M&Ms 13,172,600 994.45 -1.12% -6.84%
DRREDDY 1,811,625 4,155.20 -3.07% -6.10%
IBULHSGFIN 27,503,200 96.85 -0.67% -5.80%
AARTIIND 3,585,300 689.2 -0.37% -4.84%

(Decrease in open interest as well as price)

Short cover

Store Current IO CPM Price change (%) Change in OI (%)
Crompton 3,507,900 323.95 1.58% -8.94%
DELTACORP 14,310,600 184.8 12.96% -8.07%
GNFC 2,739,100 610.15 1.82% -7.74%
GNP 223,152,000 28.8 1.41% -7.33%
RBLBANK 46,597,200 82.7 0.30% -6.05%

(Increase in price and decrease in open interest)

Store Current IO CPM Price change (%) Change in OI (%)
PETRONET 14,601,000 204.5 -4.53% 9.18%
WIPRO 28,981,600 407.55 -3.70% 8.58%
MPHASE 1,638,350 2,195.20 -5.14% 8.13%
BSOFT 2,853,500 332.95 -2.92% 7.97%
TITAN 5,795,625 1,942.95 -5.66% 7.65%

(Decrease in price and increase in open interest)

A total of 128 stocks on the BSE 500 – the stock market’s broadest index – hit a 52-week low. No fewer than 13 Sensex stocks were included: TCS, Infosys, Wipro, Tech Mahindra, HDFC Bank, HDFC, Tata Steel, Asian Paints, Asix Bank, Bajaj Finance, HCL Tech, IndusInd and UltraTech.

52 week high

One stock on the 500-strong index managed to hit a 52-week high: Hindustan Aeronautics.

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