India’s equity benchmarks ended a four-day winning streak on Wednesday, with weakness in financials and IT stocks outweighing strength in oil and gas stocks in a choppy session. Investors around the world were awaiting a key GDP reading from the world’s largest economy amid fears of a slowdown.
What do the charts suggest for Dalal Street now?
He thinks the break in the 50-stock index could be a positive indication for the bulls to make a comeback. “Normally, such range moves from near-significant resistance levels eventually result in sharp bounces from lows,” he said.
The Nifty is consistently taking support near 15,700 and taking profits near the 15,900 hurdle, said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.
“The 15,700 level would act as a sacrosanct support, above which, the index would rally back to 15,900. A further rise could also occur which could take it to 15,975. 700 could continue to 15,600-15,550 group,” he said.
Here are the key things to know about the market ahead of the June 30 session:
Global Markets
Stocks in European markets started the day in the red reflecting Asian peers, as fears of a global recession eclipsed recent optimism about China reopening after months of shutdowns. The pan-European Stoxx 600 index fell 1% in the early morning.
S&P 500 futures fell 0.3%, suggesting a muted start on Wall Street.
What to expect in Dalal Street
HDFC Securities’ Shetti opines that the Nifty50’s short-term trend is choppy with a negative bias. The range-related moves could continue in the index for the next 1-2 sessions, he said.
As long as the index remains above 15,700 at the close, it should witness positive action over the coming sessions, said Gaurav Ratnaparkhi, head of technical research at Sharekhan by BNP Paribas.
“The hourly chart shows the Nifty moving in an ascending sloping channel over the past week, suggesting that its short-term trajectory is positive and it may test 16,000 in the short-term,” he said. .
Important levels to follow
The Nifty50 remains around eight percent below its long-term simple moving average.
| Period (Nb of sessions) | Simple moving average | |
| Nifty50 | Sensex | |
| 5 | 15,670.3 | 52,631 |
| ten | 15,568.7 | 52,268.3 |
| 20 | 15,947.5 | 53,524.5 |
| 50 | 16,296.8 | 54,552.2 |
| 100 | 16,727.1 | 55,983.9 |
| 200 | 17,184 | 57,586.9 |
Shetti expects a decisive move above the 15,850-15,900 levels to open a sustainable upside for the market, and immediate support around the 15,600-15,650 area.
Open call/sell interest
The maximum call open interest is accrued at the strike price of 16,000, with 2.3 lakh contracts, and the next highest at 16,200, with 1.8 lakh contracts, according to data. ‘exchange.
The maximum open interest is 15,500, with 1.8 lakh contracts, and 15,700, with 1.6 lakh.
This suggests strong resistance at 16,000 and immediate support at 15,700.
Here are five stocks that have seen an increase in open interest as well as price:
| Store | Current IO | CPM | Price change | Change of IO |
| CGSB | 30,234,050 | 152.5 | 2.18% | 75.86% |
| TVSMOTOR | 5,959,800 | 824.55 | 1.23% | 28.66% |
| ULTRACEMCO | 1,083,400 | 5,582.90 | 0.26% | 24.18% |
| ABB | 552,000 | 2,289.80 | 0.42% | 24.00% |
| NESTLEIND | 174,800 | 17,480.75 | 0.58% | 21.24% |
Long relaxation
| Store | Current IO | CPM | Price change | Change of IO |
| APLTD | 458,500 | 728.55 | -1.54% | -38.02% |
| UBL | 526,750 | 1,432.55 | -2% | -36.35% |
| APOLLOTIRE | 4,885,000 | 186 | -1.48% | -33.32% |
| IBULHSGFIN | 13,968,600 | 97.7 | -4.68% | -32.78% |
| INTELLECT | 362,250 | 645.05 | -3.26% | -32.30% |
(Decrease in open interest as well as price)
Short cover
| Store | Current IO | CPM | Price change | Change of IO |
| ASTRAL | 289,850 | 1,666.70 | 1.90% | -19.26% |
| CUMMINSIND | 526,800 | 1,019.85 | 1.69% | -17.43% |
| RAIN | 2,922,500 | 148.05 | 0.41% | -17.37% |
| SHREECEM | 97 100 | 19,283.60 | 0.67% | -12.85% |
| PAGEIND | 35,610 | 40,751.30 | 1.65% | -12.64% |
(Increase in price and decrease in open interest)
| Store | Current IO | CPM | Price change | Change of IO |
| DABUR | 6,931,250 | 500.65 | -2.38% | 43.91% |
| MINDTREE | 1,169,800 | 2,925.30 | -3.43% | 43.05% |
| BATAINDIA | 743,325 | 1,674.95 | -2.57% | 35.66% |
| CIPLA | 3,873,350 | 942.2 | -0.24% | 33.39% |
| ASIAN PAINTING | 1,917,750 | 2,695.60 | -1.05% | 30.34% |
(Decrease in price and increase in open interest)
52 Week Highs
Two shares in the BSE 500 universe – the broadest index on the stock exchange – broke through: Jamna Auto and Phoenix Mills.
52 week lows
Nine stocks in the 500-strong index hit their lowest level in 52 weeks:
| BAJAJFINSV | IDBI | PFIZER |
| BIOCON | JCHAC | STAR HEALTH |
| CHAMBLFERT | MUTHOOTFIN | WOCKPHARMA |
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