Will Nifty50 retreat further? Check key market indices ahead of Thursday’s session

Indian stock indexes hit all-time highs on Wednesday before retreating to finish almost unchanged as selling pressure appeared on some heavyweight financial stocks. The NSE Nifty50 Index gained 10.05 points to finish at a record 16,634.65, although 77.8 points off a lifetime high recorded during the session.

So what do the charts suggest for Dalal Street?

The index has formed a candle that resembles a shooting star, which has a bearish implication, according to Gaurav Ratnaparkhi, head of technical research, Sharekhan by BNP Paribas. The overall structure shows that Nifty50 is still in a near-term consolidation phase and is expected to experience a decline before a further rise, he said.

Focus on wider markets

“Currently, the mid and small cap segments are in a negative trend and an area forming lower highs and lows. Therefore, any decline in these segments after the formation of new highs and lows could cause the market to fall. downward correction, ”Nagaraj Shetti said. , Technical Research Analyst, HDFC Securities.

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

Global markets

S&P 500 futures traded flat, indicating a quiet start on Wall Street a day after another record close for the S&P 500 and Nasdaq. Investors have watched the progress of the government’s multibillion-dollar investment plans and awaited updates from the annual Jackson Hole Symposium scheduled for later this week. European stocks edged up with the STOXX 600 regional index rising 0.1% in the early hours of the morning, less than one percent of its peak.

What to expect on Dalal Street

“Nifty’s short-term trend continues to be positive. But pattern formation and the emergence of minor sales from new all-time highs signal opportunities for consolidation or additional near-term profit,” said Shetti of HDFC Securities.

Does that mean the latest drop can extend at least until the early hours of Thursday?

Financial stocks have proven to be quite reluctant to support, said Anand James, chief market strategist at Geojit Financial Services. “However, mid and small cap stocks appear to have found their voice, suggesting that overall sentiment may not turn completely negative, and the bulls may attempt to regroup once in the 16,585-16,520 region for a dash around 17,000-17,200, “he said. .

For Rahul Sharma, co-founder of Equity99, the market looks strong, with small and mid-cap stocks recovering from a sell-off, as well as computer and metal indices. IT, banking, infrastructure, automotive and logistics stocks will be the focus on Thursday, he said.

Key levels to watch

Nifty50: The index as immediate and strong support at 16,600, then 16,550 to 16,475 levels, and faces resistance at 16,700, followed by 16,740 to 16,800, according to Sharma of Equity99.

Nifty Bank: The banking index finds support at the 35,500-35 380-35,200 levels, and its resistance is in the 35,900-36,200 area, he said.

FII / DII activity

Foreign institutional investors on Monday withdrew 1,363.36 crore net rupees from the Indian capital market. Domestic institutional investors made net purchases of Rs.1452.51 crore, according to stock exchange data.

Open interest call / put

The maximum open call interest is accrued at the strike price of 16,700, followed by 16,800. On the other hand, there is a high degree of open interest for strikes of 16,600 and 16,500. , according to data from NSE. This indicates that immediate resistance can be expected at 16,700, then 16,800, and support stands at 16,600.

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 (%)
PIDILITIND 9.99,000 2,207.10 0.04% 22.32%
HINDALCO 1,85,69,550 431.1 2.39% 20.88%
NESTLEIND 1 23 600 19,901.90 0.78% 19.58%
TORNTPHARM 2,43,500 3069.35 0.44% 18.17%
INDIGO 7,83,500 1,716 1.55% 17.29%

Long process

symbol Current OI CMP Price change (%) Change of IO (%)
NAVINFLUOR 2,27,925 3,605.20 -1.27% -30.11%
AUBANQUE 8,27,500 1,351.70 -0.63% -24.59%
LALPATHLAB 1,95,250 3 822.15 -0.35% -23.18%
AARTIIND 13.06.450 914.35 -0.64% -23.10%
BAJAJFINSV 3 54 825 16,018.05 -2.57% -22.85%

(Decrease in open interest and price)

Short construction

symbol Current OI CMP Price change (%) Change of IO (%)
METROPOLIS 1 85 200 2,691 0.10% -27.65%
COALIND 1.97.82000 138.85 1.76% -21.30%
TATAMOTORS 4,24,93,500 284.8 1.59% -17.61%
APLLTD 10,39,500 750 1.34% -16.35%
CIO 2,12,35,500 106.05 0.09% -16.04%

(Increase in open interest and decrease in price)

Short cover

symbol Current OI CMP Price change (%) Change of IO (%)
ASIAN PAINTING 15 84,000 3,038.25 -0.42% 40.02%
MARUTI 10 92 300 6,716.55 -1.35% 32.12%
ALKEM 2 08 200 3,831.30 -0.05% 23.15%
MFSL 12.31.750 1,023.30 -1.98% 22.96%
HAVELLES 13.46.500 1,207.05 -4.56% 20.98%

(Decrease in open interest and increase in price)

Stocks hit 52 week highs

Bajaj Finance, Bajaj Finserv, TCS, Tech Mahindra, Wipro, Tata Elxsi, Nestlé, Naukri, Coforde Linde, HAL and DMart were among the stocks that hit 52-week highs.

Stocks at 52-week low

Only one stock in the BSE 500 universe – the broadest index on the stock market – hit a 52-week low: Amara Raja Batteries. In addition, CarTrade Tech and Nxtdigital also hit 52 week lows.

Volatility gauge

The India VIX Index – which measures expectations of volatility in the market – jumped 2.35% to 13.50, after rebounding to 5.91% at some point in Wednesday’s bumpy session.

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