Can Bulls Push Nifty Across 18,000 Decisively? Here’S What Technical Charts Suggest, Key Market Cues And More

Indian equity benchmarks snapped a two-day winning run on Tuesday, retreating from 11-week peaks scaled in the previous session, dragged by weakness across financial stocks. Globally, shares made cautious gains as news updates about the Russia-Ukraine war kept investors on the back foot.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed a reasonable negative candle on the daily chart following the previous day’s long bull candle, suggesting profit booking at the highs, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. 

“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)


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

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