Nifty50 may pause after clearing key 15,800 hurdle

India’s equity benchmarks continued to rise for a third straight session on Monday, led by financials, IT and FMCG stocks, joining a rally in global markets as easing crude oil rates helped investors to forget fears about inflation and slowing growth.

What do the charts suggest for Dalal Street now?

The Nifty50 formed a reasonable negative candle on the daily chart, clearing the crucial resistance level at 15,800, according to Nagaraj Shetti, technical research analyst at HDFC Securities.

However, he doubts that the 50-certificate index can hold above the 15,800 mark for a long time.

Nifty50 not out of the woods

The market is near significant resistance, with the texture of the chart suggesting a strong possibility for a quick intraday correction, said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

“While the shift in mood was a major relief, optimism could remain for a few more sessions before the market turns volatile amid fears of a slowing global economy due to rate hikes and price hikes. continuous outflow of foreign funds,” he said.

Here are the key things to know about the market ahead of the June 28 session:

Global Markets

All three major Wall Street indexes were mixed on Monday as a rally last week on easing inflation concerns petered out, with high-growth stocks leading lower.

The S&P 500 was flat at last count. The Dow Jones rose slightly 0.1%, but the tech-heavy Nasdaq Composite fell 0.4%.

European equities managed to hold onto their opening gains. The pan-European Stoxx 600 index rose 0.6%.

What to expect in Dalal Street

HDFC Securities’ Shetti believes that Nifty’s short-term trend remains positive.

“A display of lack of strength to hold the highs during the breakout is likely to lead to further consolidation or a correction lower from the highs. On the other hand, a decisive rise above 15,900 could open further up towards the 16,200 hurdle,” he said. .

Important levels to follow

The Nifty50 is about eight percent below its long-term simple moving average.

Period (Nb of sessions) Simple moving average
Nifty50 Sensex
5 15,628 52,501.9
ten 15,556.9 52,219.9
20 15,984.2 53,643.9
50 16,323.3 54,631.9
100 16,744.4 56,040.8
200 17,191.5 57,612.4

Chouhan expects immediate resistance for intraday traders at 15,900 and 15,925, below which he sees the corrective wave continuing to the 15,750-15,700 band.

“Above 15,925 the index could rise to 16,000. Contrarian traders can take a long bet near 15,700 with a hard support stop loss at 15,660,” he said. He suggests.

Open call/sell interest

Call maximum open interest is accrued at the strike price of 16,000 and 16,500, with contracts of 1.7 lakh each, according to exchange data. The maximum open interest is 15,000, with 1.7 lakh contracts, and the second highest at 15,500, with 1.4 lakh.

This suggests strong resistance at 16,000 and immediate support at 15,500.

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

Store Current IO CPM Price change (%) Change in OI (%)
IDEA 276,290,000 8.9 1.14% 23.38%
IDCFIRSTB 115,035,000 32.25 3.70% 58.45%

Long relaxation

Store Current IO CPM Price change (%) Change in OI (%)
ADANIPORTS 50,105,000 685.8 -0.20% -56.59%
BRITISH 1,494,000 3,463.50 -0.48% -42.06%
VOLTAS 3,766,500 983.45 -0.81% -41.30%
COLPAL 2,297,050 1,508 -0.66% -37.19%
HEROMOTOCO 3,433,800 2,758.10 -0.01% -35.60%

(Decrease in open interest as well as price)

Short cover

Store Current IO CPM Price change (%) Change in OI (%)
GRASIM 11,362,000 1,349.60 1.80% -54.31%
LALPATHLAB 936 375 2,107 3.79% -48.89%
JUBLFOOD 8,409,375 541.65 1.29% -43.98%
RAMCOCEM 3,031,950 627.05 2.74% -43.34%
SHREECEM 263,025 19,096.40 1.76% -43.27%

(Increase in price and decrease in open interest)

Store Current IO CPM Price change (%) Change in OI (%)
BANDHANBNK 10,515,600 285.2 -0.85% 151.49%

(Decrease in price and increase in open interest)

A share of the BSE 500 universe – the broadest index of the stock exchange – has crossed the threshold: Mahindra & Mahindra (M&M).

52 week lows

Two stocks in the 500-strong index hit 52-week lows: Star Health and V-Mart Retail.

Fear Index

India’s VIX – which measures the expectation of fear in the market – rose 2.2% to 21 on Monday.

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