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Trade Setup: More Steam Left In Nifty50? Check Key Market Cues Before Wednesday’S Session – CNBCTV18

Sensex and Nifty soared to record highs on Tuesday led by IT and financial stocks amid optimism on economic recovery and earnings growth. Nifty Bank jumped 1.4 percent.

So, what do the charts suggest for Dalal Street?

Nifty50 has formed a long bull candle on the daily chart, indicating a sharp upside breakout of the two-month sideways range, which signals more upside in the near term, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. “Any consolidation or minor dips from here could be a ‘buy on dips’ opportunity in the market,” he said.

Nifty’s big white candle with no lower shadow is a bullish sign suggesting more upside supported by two bullish candles in the last two sessions, said Rahul Sharma, Market and Head of R&D at Equity99.

Escaping boredom

Finally, the market has broken the boring trading range decisively. The best part of Tuesday’s spectacular session is the contribution from large-cap companies, said Shrikant Chouhan, executive vice president, equity technical research, Kotak Securities. “Any correction to 15,900-15,950 levels would be an opportunity to re-enter the market. Above 16,000, Nifty is heading for 16,270 with minor resistance at 16,200,” he said.

Here are key things to know about the market before Tuesday’s session:

Call/put open interest

The maximum call open interest is at the strike price of 16,200, and then 16,300. On the other hand, the maximum put open interest can be seen at 15,900, and then at 16,000, according to data from NSE. This indicates that immediate resistance can be expected at the 16,200 mark, followed by 16,300, and support comes in at the 15,900-16,000 levels.

Key levels to watch out for

Nifty50: “The upside breakout area of 15,960-15,900 is expected to offer strong support for the market… The next upside levels to be watched around 16,300-16,500 in the next 6-8 sessions, with important support at 15,960-16,000 levels,” Shetty said.

Nifty Bank: Bank Nifty has major support at 35,000, followed by 34,850-34,600. On the upside, hurdles are placed at 35,350-35,400 levels, and then 35,600, according to Sharma.

Long build-up

Here are five stocks that saw an increase in open interest as well as price, suggesting a build-up of long positions:

SymbolCurrent OICMPPrice change (%)OI change (%)

Long unwinding

SymbolCurrent OICMPPrice change (%)OI change (%)

(Decrease in open interest and price)

Short build-up

SymbolCurrent OICMPPrice change (%)OI change (%)

(Increase in open interest and a decrease in price)


SymbolCurrent OICMPPrice change (%)OI change (%)

(Decrease in open interest and an increase in price)

Volatility gauge

India VIX index — a measure of volatility in the market — soared 7.36 percent to 13.75, its biggest single-day spike in two weeks.

Global markets

Most Asian fell as the Delta variant of Covid-19 spread in key markets, rattling investor confidence. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.40 percent. European shares were off to a strong start on positive earnings from BP and Stellantis. S&P 500 futures traded 0.27 percent higher, indicating a positive start ahead on Wall Street.

FII/DII flow

Foreign institutional investors pulled out a net Rs 1,539.88 crore from the Indian capital market on Monday, exchange data showed. Domestic institutional investors, however, poured in Rs 1,505.82 crore.

Earnings to watch

Adani Green, Adani Total, Apollo Tyres, Blue Star, Bosch, Cholamandalam Financial, SBI, Titan, Tata Communiations are among the companies scheduled to report their quarterly earnings on Wednesday.