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Nifty50 may extend pullback but volatility cannot be ruled out


Trade setup for Wednesday August 24: The Nifty50 could rally to the 18,000-18,100 levels if it holds the 17,670-17,690 zone, but volatility could linger ahead of the monthly derivatives expiration, experts say . Here’s what the technical charts suggest.

India’s equity benchmarks recouped some of the steep losses of the past two days in a volatile session on Tuesday, led by a rebound in financials, oil and gas and auto stocks. Analysts expect volatility to persist ahead of Thursday’s monthly futures and options expiration.

Globally, investors were awaiting updates from an annual gathering of central bankers at the Jackson Hole symposium in the United States this week for clues about the state of the world’s largest economy and the future evolution of COVID-era interest rates.

What do the graphs suggest for Dalal Street?

The Nifty50 has formed a bottom reversal pattern thanks to heavy buying at lower levels, and the pattern of higher highs and higher lows appears to be intact, a sign that the trend remains positive, according to independent technical analyst Manish Shah.

“There is an opportunity for the bulls to enter the final days of the August expiry. The index should see a bounce up to the 18,000-18,100 levels if it manages to hold above of the 17,670-17,690 band,” he said.

Time to buy falling financial stocks

Nifty Bank has created a strong bullish reversal candle, pointed out Kunal Shah, Principal Technical Analyst at LKP Securities.

“As long as the support in the 37,700-38,000 area holds, the index remains in ‘buy down’ mode. An immediate hurdle lies at 39,000, a move above that will see short cover,” he said. he declared.

Here are the key things to know about the market ahead of the August 24 session:

European stocks fell, reflecting a broadly negative trend in Asia, as investors worried about soaring energy prices and a weak economic outlook after data showed business activity in the region had contracted this month.

The pan-European Stoxx 600 index was down 0.2% at last count.

S&P 500 futures rose 0.2%, suggesting a slightly higher start on Wall Street.

Major moving averages

The Nifty50 holds more than two percent above its long-term moving average.

Period (Nb of sessions) ADM
Nifty50 Clever bank
5 17,558.6


ten 17,523.2 38,441.7
20 17,588.8 38,539.2
50 17,756.9 39,023.1
100 17,628


200 17,171.6 37,667.2

Mohit Nigam, Head-PMS at Hem Securities, identified the following support and resistance levels:

Index Support Resistance
Nifty50 17,475 17,750
Clever bank 38,400 39,300

FII/DII activity

Nifty50 may extend pullback but volatility cannot be ruled out

The maximum call open interest is accrued at the strike price of 18,000, with 2.5 lakh contracts, and the next highest at 17,800 and 17,900, with 1.5 lakh each, according to the data. exchange. On the other hand, the maximum open interest to sell is 17,500, with 1.7 lakh contracts, and 17,000, with 1.6 lakh contracts.

This indicates immediate resistance in the 17,800-17,900 area and a strong base at 17,500.

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

Store Current IO CPM Price change Change of IO
BATAINDIA 1,436,875 1,889.35 1.69% 38.01%
CIPLA 7,088,250 1,042 1.89% 22.60%
NAUKRI 1,120,375 4,272.05 0.77% 21.91%
MARUTI 2,741,700 8,751.50 1.34% 21.22%
ATUL 93,675 9,238.60 3.03% 21.14%

Long relaxation

Store Current IO CPM Price change Change of IO
COFORGE 436 350 3,704.15 -0.68% -30.56%
SUN TV 7,804,500 490.45 -0.92% -13.03%
LTTS 536,600 3,667.75 -0.32% -11.07%
PERSISTENT 320 850 3,642 -1.26% -9.26%
UBL 760 400 1,638.70 -0.56% -8.00%

(Increase in price and decrease in open interest)

Store Current IO CPM Price change Change of IO
SYNGENE 2,017,000 594.7 2.90% -43.18%
CANBK 24,667,200 230.65 3.85% -32.72%
RBLBANK 37,330,000 104.45 6.26% -32.63%
IBULHSGFIN 21,672,000 129.45 1.65% -27.63%
AARTIIND 1,898,050 796.3 1.19% -27.59%

(Increase in price and decrease in open interest)

Store Current IO CPM Price change Change of IO
MINDTREE 1,673,200 3,354.05 -0.69% 24.78%
PIIND 1,096,250 3,335.35 -1.25% 16.65%
ADANIPORTS 24,596,250 836.65 -0.46% 16.65%
HINDPETRO 14,261,400 243.4 -1.24% 16.45%
CDS 7,463,100 3,312.95 -1.16% 11.01%

(Decrease in price and increase in open interest)

A total of seven stocks in the BSE 500 universe – the exchange’s broadest index – hit 52-week highs: Adani Transmission, Eicher, Bharat Electronics, Deepak Fertilizers, KSB, Grindwell Norton and Great Eastern Shipping.

Conversely, three scrips reached their lowest level in 52 weeks: Sanofi, Metropolis and Alembic Pharma.

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