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India’s equity benchmarks made minor gains at the end of a choppy session on Tuesday, led by gains in automotive, pharmaceutical and PSU banking stocks. Buying interest in heavyweights such as Reliance Industries, ICICI Bank, Bajaj Finance and Tata Steel also helped major indexes stay in the green.
What do the charts suggest for Dalal Street now?
17,350 a significant hurdle
The market hit a temporary bottom, following a hammer pattern on the daily chart, said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.
“The possibility of a strong pullback has increased. If the Nifty is able to break through 17,350 decisively, it may touch 17,500… Levels of 17,120 and 17,030 will serve as support for the index but below from 17,030, it can reach levels 16,950/16,900,” he said.
Here are the key things to know about the market ahead of the February 9 session:
Global Markets
European stock markets started Tuesday’s session on a positive note, boosted by positive financial results from oil giant BP. The pan-European Stoxx 600 index rose 0.8% at the latest count.
S&P 500 futures were down 0.2% at the latest count, suggesting a slow start on Wall Street.
What to expect in Dalal Street
The graphs indicate likelihood of another minor bounce or the formation of a lower short-term top before a drop off the highs, said Shetti of HDFC Securities.
He sees a minor bounce off the current level or the 17,000 mark but warns it could short-lived, and another lower upper formation below 17,800 can be expected.
A move above Tuesday’s high of 17,306 will provide confirmation that could lead to positive near-term momentum, believes Ruchit Jain, Lead Research at 5paisa.com. He advises traders to look for buying opportunities if the Nifty breaks above this level on Wednesday.
Main levels to monitor
The Nifty is likely to remain volatile ahead of the RBI’s fortnightly policy outcome, independent technical analyst Manish Shah said. A break above the resistance at 17,330-17,350 will push the index towards the 17,500-17,600 levels. He sees support for the index at 17,050 and thinks that if the buying continues to On weekly expiry (February 10), it could trade above 17,500.
Choice Broking AVP-Research Sachin Gupta sees resistance and support at the following levels:
| Index | Resistance | Support |
| Nifty50 | 17,500 | 17,050 |
| Clever bank | 38,400 | 37,500 |
Provisional trading data shows that Foreign Institutional Investors (FIIs) sold Indian shares worth Rs 1,157.2 crore on Monday. Net sales by domestic institutional investors (DII) amounted to Rs 1,376.5 crore.
Exchange data shows the accumulation of maximum call open interest at the strike price of 17,500, with 1.7 lakh contracts, and 17,600, with 1.4 lakh contracts. On the other hand, the maximum open interest to sell is placed at 17,000, with more than one lakh in contracts.
This suggests major resistance in the 17,500-17,600 band and significant support at 17,000.
Here are five stocks that have seen an increase in open interest as well as price, suggesting an accumulation of long positions:
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| TVSMOTOR | 74,04,600 | 646 | 2.01% | 26.53% |
| GNFC | 28,56,100 | 538 | 4.42% | 19.30% |
| COROMANDEL | 12,10,000 | 799.5 | 0.08% | 8.68% |
| BHARATFORG | 56,40,750 | 726.1 | 0.31% | 7.33% |
| MARUTI | 25,15,600 | 8,590 | 0.84% | 7.28% |
Long relaxation
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| DELTACORP | 1,49,47,700 | 278.2 | -1.83% | -2.68% |
| OBEROIRLTY | 25,13,000 | 911.9 | -0.64% | -1.45% |
| Crompton | 29,82,100 | 405.9 | -1.05% | -1.14% |
| POLYCAB | 8,03,400 | 2,363.75 | -1.15% | -1.08% |
| M&MFIN | 3,62,76,000 | 154.65 | -0.19% | -0.88% |
(Decrease in open interest as well as price)
Short cover
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| PETRONET | 1,96,11,000 | 217 | 2.24% | -4.59% |
| TITAN | 58,33,125 | 2,445.50 | 1.37% | -3.75% |
| PFIZER | 1,74,000 | 4,558 | 3.28% | -2.87% |
| SRTRANSEND | 28,84,400 | 1,239 | 1.47% | -2.59% |
| MANAPPURAM | 1,91,52,000 | 159 | 2.71% | -0.89% |
(Increase in price and decrease in open interest)
Short setup
| symbol | Current IO | CPM | Price change (%) | Change in OI (%) |
| TATAPOWER | 12,45,44,250 | 232.7 | -7.71% | 20.05% |
| COALINDE | 3,65,86,200 | 156.95 | -2.73% | 19.89% |
| IBULHSGFIN | 3,45,37,100 | 198 | -5.38% | 14.89% |
| SIEMENS | 15,46,050 | 2,368.15 | -1.99% | 14.28% |
| BATAINDIA | 14,04,700 | 1,878 | -2.41% | 12.80% |
(Increase in open interest and decrease in price)
52 Week Highs
Five stocks in the BSE 500 basket hit 52-week highs: Bank of Baroda, SIS, Jindal Stainless, GNFC and ELGI Equipments.
52 week lows
As many as 11 stocks hit 52-week lows, including HDFC Life, Lupin, MRF, IGL, Kansai Nerolac, AstraZeneca and Solara Active Pharma.
Volatility indicator
NSE’s India VIX index – which measures volatility expectations in the market – fell 3.7% to 19.7 on Tuesday, after falling as much as 4.3% during the session ..
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