What do the charts suggest for Dalal Street now?
“Tuesday’s weakness so far has not damaged the recent uptrend status of the market. The Nifty is showing consolidation or minor weakness at crucial resistance around 18,200,” he said.
The 50-scrip index has formed a double top kind of pattern on the intraday chart, which hints at further weakness, and the daily chart looks broadly negative though the medium-term texture is still on the positive side, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
“As long as the index trades below 18,050, correction could continue up to 17,850-17,750 levels. A fresh uptrend, possible only after a breakout above 18,050, could take it up to 18,130-18,200,” he said.
Here are key things to know about the market before the April 6 session:
At 7:49 am on Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty50 index — were down 160 points or 0.9 percent at 17,861, suggesting a gap-down start ahead on Dalal Street.
Equities in other Asian markets fell tracking overnight losses on Wall Street after comments from Fed Governor Lael Brainard brought the focus back to the possibility of aggressive monetary policy tightening to curb worsening inflation. The dollar hit a near two-year high. MSCI’s broadest index of Asia Pacific shares outside Japan was down 1.3 percent.
Japan’s Nikkei 225 was down 1.9 percent, China’s Shanghai Composite 0.7 percent, Hong Kong’s Hang Seng 1.7 percent, South Korea’s KOSPI 0.9 percent and Singapore’s Straits Times 0.5 percent.
S&P 500 futures were down 0.1 percent. On Tuesday, Wall Street indices fell dragged by tech and other growth stocks.
What to expect on Dalal Street
HDFC Securities’ Shetti believes the Nifty has entered a minor profit booking mode. He rules out sharp weakness for the time being.
However, he sees the possibility of rangebound movement around 18,200-17,800 levels in the next few sessions before the index takes out important resistance at 18,200 eventually.
Levels to watch out for
Rupak De, Senior Technical Analyst at LKP Securities, highlighted that the Nifty is keeping above its 200-day moving average, a sign that it is in a prevailing positive trend.
| Period (No. of days) | DMA |
| 5 | 17,728.9 |
| 10 | 17,481.3 |
| 20 | 17,131.3 |
| 50 | 17,119.1 |
| 100 | 17,314.6 |
| 200 | 17,100.4 |
“On the higher end, 18,150 may continue to remain an immediate resistance. On the lower end, support is visible at 17,800,” De said.
Foreign institutional investors (FII) net purchased Indian shares worth Rs 374.9 crore on Tuesday, domestic institutional investors (DIIs) Rs 105.4 crore, according to exchange data.
Provisional exchange data shows the maximum call open interest is accumulated at the strikes of 18,000 and 18,500, with 1.5 lakh contracts each. On the other hand, the maximum put open interest is at 17,500, with 1.2 lakh contracts.
This suggests a major hurdle at 18,500 after strong immediate resistance at 18,000 and significant support at 17,500.
Long build-up
Here are five stocks that saw an increase in open interest as well as price:
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| METROPOLIS | 4,88,600 | 2,379.95 | 6.49% | 41.75% |
| ABB | 1,93,500 | 2,200 | 3.27% | 26.87% |
| BSOFT | 40,36,500 | 492.1 | 3.69% | 25.89% |
| ASTRAL | 7,06,750 | 2,059 | 3.38% | 18.17% |
| DIXON | 5,10,875 | 4,660.95 | 5.50% | 17.27% |
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| JINDALSTEL | 3,40,57,500 | 547.6 | -0.24% | -4.28% |
| SYNGENE | 9,75,800 | 616.15 | -0.11% | -3.40% |
| DELTACORP | 1,33,86,000 | 326.45 | -2.71% | -1.98% |
| BATAINDIA | 15,73,000 | 2,023.90 | -0.43% | -1.47% |
| HONAUT | 6,930 | 39,775.05 | -0.33% | -1.30% |
(Decrease in open interest as well as price)
Short-covering
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| JKCEMENT | 4,61,300 | 2,697.30 | 4.64% | -10.28% |
| L&TFH | 4,54,85,628 | 86.1 | 0.23% | -3.73% |
| SRF | 29,91,375 | 2,715 | 2.42% | -3.59% |
| ASHOKLEY | 4,06,75,500 | 123.8 | 2.06% | -1.39% |
| TATAMOTORS | 7,41,85,500 | 459 | 2.20% | -1.10% |
(Increase in price and decrease in open interest)
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| SBICARD | 38,61,000 | 844.5 | -3.98% | 84.05% |
| FEDERALBNK | 6,09,00,000 | 98.45 | -4.51% | 31.84% |
| LTTS | 5,84,600 | 5,190.95 | -0.61% | 15.70% |
| AUBANK | 21,48,500 | 1,310.35 | -0.28% | 12.03% |
| BAJAJFINSV | 5,92,600 | 16,900.85 | -2.19% | 10.22% |
52-week highs
A total of 25 stocks in the BSE 500 pack — the broadest index on the stock exchange — hit 52-week highs, including Vedanta, Sun Pharma, Power Grid, Adani Enterprises, Adani Green, Adani Power, Adani Total, Tata Power, Blue Star, Intellect Design, JSPL, Linde, Narayana Hrudayalaya, CreditAccess and Trent.
52-week lows
No BSE 500 stock hit a 52-week low.
The India VIX — known in market parlance as the fear index — rose 3.2 percent to 18.5 on Tuesday. In February, Russia’s move to invade Ukraine had sent the VIX soaring to a 20-month high of 34.
First Published: IST
