June30 , 2022

Nifty May Be Poised For Higher Levels As Bulls Return To Street After A Pause

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Indian equity benchmarks managed to finish a volatile day in the green on Thursday, continuing an upmove after a day’s pause, led by financial, IT and auto counters.

However, nervousness persisted among investors globally about steep hikes in COVID-era interest rates and their impact on economic growth.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed a reasonable positive candle on the daily chart with minor upper and lower shadows, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

A bounce on Thursday could be a positive sign, he said.

Sideways movement may continue

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities,views 15,400 and 15,600 as the key levels to watch out for.

“Below 15,400, the 50-scrip index could slip up to 15,340-15,300 and on the other hand, above 15,600, the key breakout level for the bulls, it is likely to hit the 15,720-15,800 band,” he said.

Here are key things to know about the market ahead of the June 24 session:

SGX Nifty

Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — rose as much as 112.5 points or 0.7 percent to 15,677 ahead of the opening on Dalal Street on Friday.

Global markets

Equities in other Asian markets bounced back on Friday following a strong session in the US overnight. MSCI’s broadest index of Asia Pacific shares outside Japan was up 1.1 percent in early hours.

Japan’s Nikkei 225 was up 0.8 percent, China’s Shanghai Composite 0.5 percent and Hong Kong’s Hang Seng 1.3 percent.

S&P 500 futures were up half a percent.

On Thursday, the three main Wall Street indices jumped amid strength in defensive and tech stocks that outweighed declines for economically-sensitive groups. The S&P 500 gained one percent, the Dow Jones 0.6 percent and the Nasdaq Composite 1.6 percent.

What to expect on Dalal Street

HDFC Securities’ Shetti believes the Nifty is placed within a broader high-low range of 15,700-15,350 levels.

He sees the possibility of an upmove towards the crucial overhead resistance zone of 15,700-15,800 in the next 1-2 sessions before another round of mild weakness from the highs.

Important levels to track

The Nifty50 is 9.6 percent below its long-term simple moving average in a bearish signal.

Period (No. of sessions)

Simple moving average
5 15,450.5
10 15,601.3
20 16,058.4
50 16,392.8
100 16,773.5
200 17,207.4

Mohit Nigam, Head-PMS at Hem Securities, pointed out key resistance and support levels:

Index Support Resistance
Nifty50 15,300 15,700
Nifty Bank 32,600 33,500

FII/DII activity

Call/put open interest

The maximum call open interest is accumulated at the strike price of 15,600, with 1.8 lakh contracts, and the next highest at 15,800 and 15,900, with 1.3 lakh each, according to exchange data. The maximum put open interest is at 15,000, with 1.9 lakh contracts, and 15,500, with 1.3 lakh.

This suggests strong resistance awaits the Nifty at 15,600 and immediate support comes in at 15,500.

Here are five stocks that saw an increase in open interest as well as price:

Stock Current OI CMP Price change OI change
COFORGE 464,600 3,671.20 5.33% 18.85%
ADANIPORTS 74,945,000 678.5 1.37% 15.87%
SRTRANSFIN 3,337,200 1,201.60 2.78% 12.19%
MARUTI 3,330,900 8,305.90 6.60% 11.98%
EICHERMOT 3,007,200 2,823.95 6.04% 10.92%

Long unwinding

Stock Current OI CMP Price change OI change
PETRONET 16,011,000 206.8 -0.36% -9.37%
SUNTV 11,091,000 408.15 -0.07% -1.91%
IGL 9,670,375 357.45 -0.01% -1.14%
MANAPPURAM 22,533,000 84.5 -1.23% -1.07%
IDEA 557,130,000 8.5 -0.58% -0.65%

(Decrease in open interest as well as price)

Short covering

Stock Current OI CMP Price change OI change
UBL 950,950 1,496.80 1.62% -2.91%
GMRINFRA 108,630,000 33.9 1.35% -1.97%
CUB 10,886,800 123.85 1.98% -1.94%
NBCC 21,804,000 28.3 1.07% -1.93%
DIXON 626,250 3,396.10 1.73% -1.58%

(Increase in price and decrease in open interest)

Stock Current OI CMP Price change OI change
ASTRAL 553,575 1,651.50 -0.03% 11.23%
RELIANCE 22,484,500 2,474.85 -1.21% 9.18%
MARICO 10,152,000 477.75 -0.58% 7.68%
GAIL 29,023,800 132.5 -0.75% 6.24%
OBEROIRLTY 4,053,700 748.05 -1.20% 6.23%

(Decrease in price and increase in open interest)

 

No stock in the BSE 500 universe — the broadest index on the bourse — hit the milestone.

52-week lows

A total of 24 stocks in the 500-strong index hit 52-week lows:

AARTIDRUGS GSPL NIACL SYMPHONY
ABSLAMC GUJGAS ROUTE TATASTEEL
AXISBANK INDUSINDBK SPICEJET THYROCARE
CHAMBLFERT JKCEMENT STARHEALTH UPL
GPPL MUTHOOTFIN SUNTV VEDL
GRINFRA NATIONALUM SUPREMEIND VMART

First Published:  IST



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