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Trade setup for Apr 13: Can Nifty50 hold 17,500 on last trading day of holiday-truncated week? – CNBCTV18

Indian equity benchmarks continued to decline for a second straight session on Tuesday, dragged by oil & gas, metal and IT shares though a fag-end rebound in financial names prevented deeper cuts. IT stocks remained under pressure after Tata Consultancy Services (TCS) kicked off the earnings season.

All eyes are now on more of financial results from India Inc for cues.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed a reasonable negative candle on the daily chart with a minor lower shadow, with the next support at around 17,500-17,450 levels after breaching 17,600, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

“There is no indication of any convincing bottom reversal at the lows and one may expect further weakness in the short term,” he warned.

More pain ahead?

The 50-scrip index has given up crucial support at 17,600, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

“The broader market texture remains weak and any fresh rally is possible only after a breakout above 17,620,” he added.

Here are key things to know about the market before the April 13 session:

At 7:45 am on Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — were up 6.5 points at 17,571.5, suggesting a muted start ahead on Dalal Street.

Global markets

Equities in other Asian markets began the day on a mixed note after overnight losses on Wall Street, as a US inflation reading fuelled concerns about aggressive tightening of monetary pandemic-era monetary policies. MSCI’s broadest index of Asia Pacific outside Japan was up half a percent in early hours.

Japan’s Nikkei 225 was up 1.6 percent, South Korea’s KOSPI 1.2 percent and Singapore’s Straits Times 0.8 percent, but China’s Shanghai Composite down 0.5 percent and Hong Kong’s Hang Seng down 0.3 percent.

S&P 500 futures were up 0.4 percent. On Tuesday, the three main Wall Street indices gave up initial gains after US data showed inflation in the world’s largest economy hit a fresh low in four decades. The S&P 500, the Dow Jones and the Nasdaq Composite each fell 0.3 percent.

What to expect on Dalal Street

HDFC Securities’ Shetti believes the short-term trend of the 50-scrip index remains negative. The Nifty could find support around 17,300 and is expected to bounce from the lows, he said.

Some volatility on account of the weekly F&O expiry can be expected on Wednesday, said Rahul Sharma, Co-Founder of Equity99 Advisory. He expects IT, banking, oil & gas and metal stocks to be in focus.

Levels to watch out for

The 50-scrip index has closed below its 10-day simple moving average, Kotak Securities’ Chouhan pointed out. “One could see further weakness till 17,400-17,350 levels. On the flipside, if the Nifty succeeds to trade above 17,620, it will move up to 17,700 and 17,800,” he said. 

Period (No. of days)Simple moving averageSignal

Equity99’s Sharma has placed resistance and support at the following levels:

Nifty5017,400, 17,310, 17,26017,650, 17,800, 17,990
Nifty Bank37,600, 37,400, 37,20037,820, 37,950, 38,200

FII/DII activity

Foreign institutional investors (FII) net sold Indian shares worth Rs 3,128.4 crore on Tuesday, provisional exchange data shows. However, domestic institutional investors (DIIs) made net purchases of Rs 870 crore.

Call/put open interest

According to provisional exchange data, the maximum call open interest is accumulated at the strike price of 18,000, with 1.9 lakh contracts, and the next highest at 17,600 and 17,800, with more than 1.4 lakh each, On the other hand, the maximum put open interest is at 17,000, with almost 97,000 contracts.

This suggests immediate resistance at 17,600-17,800 levels followed by the 18,000 hurdle, and meaningful support comes in at 17,000.

Long build-up

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

SymbolCurrent OICMPPrice change (%)OI change (%)

Long unwinding

SymbolCurrent OICMPPrice change (%)OI change (%)

(Decrease in open interest as well as price)


SymbolCurrent OICMPPrice change (%)OI change (%)

(Increase in price and decrease in open interest)

Short build-up

SymbolCurrent OICMPPrice change (%)OI change (%)

52-week highs

A total of 11 stocks on the BSE 500 — the broadest index on the bourse — hit 52-week highs:


52-week lows

No BSE 500 stock hit a 52-week low.

Fear gauge

The India VIX — known in market parlance as the fear index — eased 0.6 percent to settle at 18.2 on Tuesday. In late February, Russia’s move to invade Ukraine had sent the VIX soaring to a 20-month peak of almost 34.

(Edited by : Abhishek Jha)

First Published:  IST