Indian equity benchmarks halted a six-day-long losing streak on Monday, though fears of aggressive rate hikes and their impact on economic growth kept investors on the back foot.
Gains in financial and IT shares aided the rebound in headline indices, but losses in oil and gas and metal names limited the upside.
What do the charts suggest for Dalal Street now?
However, a lack of strength around 15,500 could possibly bring the bears back into action, he warned.
A key level to watch out for in Nifty Bank
Traders should view 15,250 as the sacrosanct support zone, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
“A successful move above this level may be followed by a continued pullback rally in the near future to till 15,500-15,600 levels… On the flipside, the uptrend would be vulnerable below 15,250, taking the index to up to 15,180-15,100 levels,” he said.
Here are key things to know about the market ahead of the June 21 session:
Global markets
European stocks edged higher on Monday though French shares lagged their peers after President Emmanuel Macron lost an absolute majority in the country’s parliamentary election. The pan-European Stoxx 600 index rose as much as 0.8 percent in early hours.
S&P 500 futures were also up 0.8 percent, suggesting a higher opening ahead on Wall Street.
What to expect on Dalal Street
HDFC Securities’ Shetti believes the Nifty50’s short-term trend remains volatile.
“A decisive move above 15,500 could open a bounce in the market, with important support being at 15,200,” he said.
Important levels to track
The Nifty50 remains 11 percent below its long-term simple moving average.
Period (No. of sessions) | Simple moving average |
| 5 | 15,485.7 |
| 10 | 15,865.5 |
| 20 | 16,144 |
| 50 | 16,522.6 |
| 100 | 16,822.8 |
| 200 | 17,231.6 |
Mohit Nigam, Head-PMS at Hem Securities, pointed out key resistance and support levels:
| Index | Support | Resistance |
| Nifty50 | 15,000 | 15,700 |
| Nifty Bank | 32,300 | 33,150 |
FII/DII activity
Call/put open interest
The maximum call open interest is accumulated at the strike price of 16,000, with 1.8 lakh contracts, and the next highest at 15,500, with 1.3 lakh, according to exchange data. The maximum put open interest is at 15,000 and 14,500, with 1.1 lakh contracts each.
This suggests strong resistance at the 15,500 mark and immediate support at 15,000.
Long build-up
Here are five stocks that saw an increase in open interest as well as price:
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| ASHOKLEY | 35,068,500 | 132.9 | 0.76% | 14.09% |
| UBL | 1,151,150 | 1,451.15 | 0.32% | 8.18% |
| BRITANNIA | 1,627,800 | 3,388 | 3.17% | 6.86% |
| CROMPTON | 3,194,400 | 329.05 | 1.75% | 6.30% |
| HINDPETRO | 19,402,200 | 210.7 | 0.45% | 6.05% |
Long unwinding
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| BSOFT | 3,081,000 | 324.05 | -2.31% | -3.33% |
| RBLBANK | 43,778,400 | 78.2 | -4.69% | -2.55% |
| IBULHSGFIN | 25,906,700 | 94.2 | -2.53% | -2.19% |
| ABBOTINDIA | 35,850 | 17,886.80 | -0.16% | -2.16% |
| INDIAMART | 251,850 | 3,800.05 | -1.68% | -2.11% |
(Decrease in open interest as well as price)
Short covering
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| IPCALAB | 826,200 | 874.5 | 0.98% | -3.81% |
| IGL | 10,851,500 | 343.8 | 0.92% | -3.07% |
| METROPOLIS | 969,200 | 1,431.95 | 1.84% | -2.74% |
| TCS | 11,164,200 | 3,133.10 | 1.16% | -1.32% |
| HDFCBANK | 60,424,100 | 1,322 | 2.43% | -0.92% |
(Increase in price and decrease in open interest)
Short build-up
| Stock | Current OI | CMP | Price change (%) | OI change (%) |
| COALINDIA | 29,673,000 | 176.7 | -2.75% | 27.01% |
| APOLLOTYRE | 11,640,000 | 169.1 | -2.98% | 24.44% |
| GNFC | 2,527,200 | 547.9 | -10.05% | 19.75% |
| CHAMBLFERT | 3,153,000 | 279.95 | -7.06% | 18.13% |
| GMRINFRA | 98,797,500 | 33.35 | -1.91% | 15.26% |
(Decrease in price and increase in open interest)
First Published: IST
