Nifty50 will offer a downside buying opportunity near 16,100 to 16,200? Check major market indices ahead of Tuesday’s session

Indian stock indices continued to climb on Monday after taking a one-day hiatus, led by IT and some financial stocks, particularly private sector banks. Nifty50 has regained the 16,250 mark once again, hitting around half a percent of its lifetime high recorded last week.

So what do the charts suggest for Dalal Street?

Nifty50 formed a doji candle pattern on the daily chart that represents indecision in the market, according to Rohit Sigre, senior technical analyst at LKP Securities.

Buying opportunity on dips?

“After a strong upward breakthrough from the wider high-low range to 16K levels recently, the underlying shift to a narrow range move without showing a major decline could be seen as a pattern of respite, and this action indicates a buy opportunity on dips near 16,100 to 16,200 levels, ”said Nagaraj Shetti, technical research analyst, HDFC Securities.

It’s time to be a level based trader

“The market is entering a complex corrective pattern, which would keep the volatile trend within a wide range of 16,350-16,150 levels. Beyond 16,350, Nifty would rise to 16,450. On the other hand, a breakout of 16,150 would bring the market to the 16,000 level. Become a level based trader, ”said Shrikant Chouhan, executive vice president of technical equity research at Kotak Securities.

Here are the key things to know about the market ahead of Tuesday’s session:

SGX owl

SGX Nifty futures contracts traded on the Singapore Stock Exchange – an early indicator of India’s NSE Nifty50 benchmark – were last seen trading 28.5 points or 0.18% lower at 16 240 early Monday, indicating a negative start ahead on Dalal Street.

What to expect

“Nifty’s short-term trend remains choppy. The recent bullish breakout of a wider range is still intact. The current minor consolidation / weakness should not damage sentiment after the bullish breakout,” said Shetty of HDFC Securities.

He expects the index to rebound sharply again near 16,100 support over the next two sessions. “A decisive move above 16,350 could push Nifty towards 16,500 in the near term,” he adds.

Open interest call / put

The maximum open call interest is at the strike price of 16,300, then 16,400. On the other hand, the maximum open interest for the put is concentrated at the strike price of 16,200, and then only at 16,000, according to NSE data. This indicates that immediate resistance can be expected at the 16,300 mark, followed by 16,400, and support at 16,200-16,000.

Key levels to watch

Nifty50: The 16,200 level looks like a good area of ​​immediate support going forward, followed by 16,100. If the index holds above these levels, it means the structure is positive, which may make it worse. push towards his immediate obstacle zone at 16,320-16,400, according to LKP’s Sigre.

In the future, 16,220 will serve as immediate support, followed by 16,130 and 16,075; similarly, levels of 16,300-16,350-16,430 will act as resistance, according to Rahul Sharma, co-founder of Equity99.

Nifty Bank: The banking index has support at 35,900, followed by 35,600, and resistance above the 36,200-36,500 levels, according to Sharma.

Long accumulation

Here are five stocks that saw an increase in open interest as well as price, suggesting an accumulation of long positions:

symbol Current OI CMP Price change (%) Change of IO (%)
MRF 42 430 80,050.75 0.74% 14.35%
TECHM 1,28,37,000 1,289.50 1.91% 10.54%
CUMMINSIND 30,90,000 913.1 0.93% 7.13%
TRENT 12.97.750 930 0.99% 6.76%
HAVELLES 34.75,500 1239.35 0.42% 5.37%

Long process

symbol Current OI CMP Price change (%) Change of IO (%)
NATIONAL 9.80.56,000 83.2 -12.05% -10.18%
NAVIGATE 16 45 02 000 134 -5.23% -5.69%
VOLTAS 43.76.500 1,022.60 -2.11% -5.22%
UBL 17.72.400 1419.40 -1.13% -2.73%
GAIL 3,67,15,900 146.1 -2.18% -1.13%

(Decrease in open interest and price)

Short construction

symbol Current OI CMP Price change (%) Change of IO (%)
PHASE 7,90,725 2,697.55 0.23% -4.60%
AUBANQUE 26 95,000 1,264.95 1.72% -4.53%
CIPLA 1 56 33 800 918.25 0.88% -4.31%
HDFCAMC 8.90,800 2,979.80 1.69% -2.63%
AMBUJACEM 1 62 27 000 407.6 0.53% -2.50%

(Increase in open interest and decrease in price)

Short cover

symbol Current OI CMP Price change (%) Change of IO (%)
STAR 13 25 025 681.05 -7.38% 17.98%
IDEA 6.95 -2.11% 17.67%
MOTHER SUMI 230.4 -2.76% 15.55%
BEL 2,46,73,400 171.1 -2.84% 14.69%
LUPINE 57 93 600 1,132.50 -1.82% 11.56%

(Decrease in open interest and increase in price)

Volatility gauge

The India VIX index – which assesses expectations of volatility in the short-term market – is stable at 12.61, after moving in a range of 12.03 to 13.11 on Monday.

Global markets

European stock markets started Monday’s session on a low note, as the UK benchmark FTSE fell 0.12% in the first half of the day. S&P 500 futures fell 0.10%, indicating a slow start on Wall Street.

Oil fell 4% amid a rising US dollar and fears that new coronavirus restrictions in Asia, particularly China, could slow the global recovery in fuel demand. Brent crude futures were last seen down $ 2.66 to $ 68.04 per barrel.

FII / DII flows

Foreign institutional investors brought net Rs 211.91 crore into the Indian capital market on Monday, but domestic institutional investors’ net sales amounted to Rs 716.15 crore, according to stock exchange data.

Earnings to watch

Coal India, Lupine, Trent, Reliance Infrastructure, VMart, Manappuram Finance, Jindal Steel & Power, Motherson Sumi, Godrej Agro, Deepak Fertilizers and Zomato are expected to report results for the quarter ended June 30 on Tuesday. Infibeam Avenues, IRB Infrastructure, IFCI, Prestige, Siemens, Wonderla, Tribhovandas Bhimji Zaveri and 3i Infotech, Ashoka Buildcon, Century Plyboards and Eveready are also among the companies due to release their quarterly figures on the same day.

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