Nifty50 May Have To Cross 15,500 Decisively To Sustain Pullback

Indian stock benchmarks ended a six-day losing streak on Monday, as fears of aggressive rate hikes and their impact on economic growth kept investors on the back burner.

Gains in financial and IT stocks helped the headline indices recover, but losses in oil and gas and metals limited upside potential.

What do the charts now suggest for Dalal Street?

The Nifty50 has formed a small positive candle on the daily chart with small upper and long lower shadows highlighting the possibility of a bounce forwardsaid Nagaraj Shetti, technical research analyst at HDFC Securities.

However, a lack of strength around 15,500 could potentially put the bears back into action, he warned.

An important level to watch out for in Nifty Bank

Traders should view 15,250 as the sacred support zone, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

“A successful move above this level could be followed in the near future by a sustained pullback rally to levels 15,500-15,600… On the other hand, the uptrend would be vulnerable below 15,250, pushing the index to levels 15,180-15,100. rise. ,” he said.

Here are key things to know about the market ahead of the June 21 session:

Global Markets

European equities rose higher on Monday, although French equities lagged behind their competitors after President Emmanuel Macron lost an outright majority in the country’s parliamentary election. The pan-European Stoxx 600 index rose as much as 0.8 percent in the early hours.

S&P 500 futures also rose 0.8 percent, pointing to a higher open on Wall Street.

What to Expect in Dalal Street

HDFC Securities’ Shetti believes the Nifty50’s short-term trend remains volatile.

“A decisive move above 15,500 could open a rally in the market, with key support at 15,200,” he said.

Important levels to track

The Nifty50 remains 11 percent below its simple long-term moving average.

Period (number 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 the key resistance and support levels:

Index support Resistance
Nifty50 15,000 15,700
Handy sofa 32,300 33,150

FII/DII activity

Call / open interest

The maximum open call rate 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 outstanding interest is 15,000 and 14,500, with 1.1 lakh contracts each.

This suggests strong resistance at 15,500 and immediate support at 15,000.

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

stock Current OI CMP Price change (%) OI change (%)
ASHOCLEY 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%
HIND PETRO 19,402,200 210.7 0.45% 6.05%

Long unwind

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%
IBUHSGFIN 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 and price)

Short Coverage

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)

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)

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