Nifty50 must hold 17,500 decisively for more upside in the near term

mini

Trading lineup for Thursday, October 27: The Nifty50 could continue to rise as long as it defends key support at 17,500 on corrections after halting its winning run, experts say. This is what the technical charts suggest.

Indian stock benchmarks halted a seven-session winning run on the first full session of Samvat 2079 on Tuesday, retreating from the one-month close highs clocked the previous day during the Muhurat trading session, as Dalal Street headed for a vacation.

Globally, investors remain concerned about the impact of sharp rate hikes to curb inflation on economic growth, amid warnings of at least a mild recession around the world.

What do the charts suggest for Dalal Street?

The Nifty50 has formed a bearish candle on the daily chart, suggesting profit taking at higher levels, according to Om Mehra, Technical Associate at

Choice brokerage.

The 50-scrip index appears to have strong support at 17,500, close to its 50-day simple moving average, he said. “RSI and MACD momentum indicators may shift from neutral to a slightly negative zone… Price action on the charts indicates that the market is likely to move largely within a broad range,” he said.

Time to buy the dip in the bank basket

The Nifty Bank has witnessed some profit posting around 41,500, noted Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities.

Period (number of sessions)Simple Moving Average517,672,21017,666,92017,627,85017,500,210017.340,920017,315.9

“The index remains in a buy-on-dip mode with strong support in the 40,500-40,000 zone… A break above 41,500 will witness an extension of a rise towards 42,000,” he said.

Here are key things to know about the market ahead of the October 27 session:

World stocks soared to five-week highs on Wednesday in choppy trading as major US indices were a mixed bag, with investors weighing disappointing gains from US heavyweights in hopes the Fed will slow the aggressive pace of rate hikes.

The US dollar index — which measures the greenback’s strength against six competitors, including the pound, the euro and the yen — hit a five-week low as the pound hit its all-time high since September 13, continuing its rally after Rishi Sunak became the Prime Minister of Great Britain. .

What can you expect on Dalal Street?

Subash Gangadharan, senior technical and derivatives analyst at HDFC Securities, believes the Nifty50 is still in a near-term uptrend.

“It looks like the index will move higher to its previous intermediate highs near 18,096… It’s important that it maintain immediate support at 17,607-17,503 for any mild corrections to continue the uptrend,” he said.

Key levels to watch out for

The maximum open call rate is accumulated at the strike price of 18,000, with 2.3 lakh contracts, and the next highest at 17,800, with 1.5 lakh, according to preliminary exchange data. The maximum outstanding interest is placed at 17,000 and 17,500, with 1.3 lakh contracts each, and at 17,300, with over 85,000 contracts.

This indicates immediate resistance at 17,800 and immediate support at 17,500.

Foreign institutional investors (FIIs) sold net Indian shares worth Rs 247 crore on Tuesday, according to preliminary exchange data.

Image

Here are two stocks that saw both open interest and price rise:

StockCurrent OICMPPrice change (%)OI change (%)BHEL35.196.00071.657.66%263.48%INDIACEM2.528.800242.251.87%227.52%

Long unwind

StockCurrent OICMPPrice Change (%)OI Change (%)SBILIFE2,375,2501,250.70-0.70%-74.23%IBULHSGFIN32.972,000127-0.90%-70.27%NESTLEIND121,44020,289.90 -2.96%-68.12%DELTACORP14.241, 600221.7-1.71%-67.23%BATAINDIA1,066.7251,799.20-0.42%-66.18%

(Increase in price and decrease in open interest)

StockCurrent OICMPPrice Change (%)OI Change (%)BHEL89.796.00071.47.69%-79.61%JSWSTEEL9.036.900645.752.31%-74.99%MCDOWELL-N10.820.000864.43.62%-72.63%HAVELLS1.630, 5001.177.400 ,31%-70.78%DLF19,133,400369,950.82%-68.83%

(Increase in price and decrease in open interest)

StockCurrent OICMPPrice change (%)OI change (%)IBULHSGFIN8.620.000127.85-0.74%247.61%DELTACORP4,399,900222.2-2.11%141.82%

(Decrease in price and increase in open interest)

Leave a Comment