Can Nifty50 Hold Recent Highs? Discover market indices, technical signals, important levels to follow

India’s equity benchmarks – Sensex and Nifty50 – jumped on Thursday amid a broad-based rally after the Fed announced its first rate hike in more than three years, as expected, and expressed confidence that the most the world’s largest economy is strong.

What do the charts suggest for Dalal Street now?

According to Nagaraj Shetti, Technical Research Analyst at HDFC Securities, the Nifty50 has formed a long bullish candle on the daily chart, with the two consecutive gaps remaining unfilled, suggesting a strong upside ahead.

“We can expect another opening gap this week,” he said.

The index finger may run out of steam

“The bulls have conquered the strong wall of the 16,800-17,000 levels, which should now serve as immediate support. On the other hand, 17,500 followed by 17,650 are the next levels to watch. maybe not the same type of rapid movement seen in the last 5-6 trading sessions,” Sameet Chavan, chief technical and derivatives analyst at Angel One, told CNBCTV18.com.

He expects some consolidation or small bouts of profit booking this week.

Chavan believes Nifty Bank is playing a vital role as it nears its crucial 36,700-37,000 junction. these developments on a regular basis,” he said.

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

Global Markets

All three major Wall Street indexes jumped on Friday, led by tech stocks after U.S. President Joe Biden and Chinese President Xi Jinping’s talks on the Russia-Ukraine war ended with no major surprises. The S&P 500 closed up 1.2%, the Dow Jones rose 0.8% and the Nasdaq Composite 2.1%.

Earlier in the day, the pan-European Stoxx 600 index rose 0.9%.

What to expect in Dalal Street

HDFC Securities’ Shetti believes that the current decisive break of the Nifty50 around the support zone of the 16,800-17,000 levels indicates the continuation of strong short-term bullish momentum.

He sees 17,800-18,000 as potential upside targets to watch in the coming weeks with immediate support at 17,050.

Rahul Sharma, co-founder of Equity99 Advisory, warns that any major news on the Ukraine crisis could trigger a sell-off for markets, and advises investors to deploy cash in parts to take advantage of any declines.

He expects autos, metals, consumer staples and real estate stocks to be in focus on Monday.

Levels to watch

Sharma highlighted the following levels:

Index Support Resistance
Nifty50 17,250, 17,180, 17,100 17,340, 17,460, 17,535
Clever bank 36,300, 36,100, 35,880 36,550, 36,725, 36,900

FII/DII activity

Foreign institutional investors (FIIs) bought Indian stocks with a net worth of Rs 2,800.1 crore on Thursday, according to preliminary exchange data. However, net sales by domestic institutional investors (DII) amounted to Rs 678.5 crore.

According to exchange data, the maximum call open interest is accrued at 17,500, with 1.4 lakh contracts, and then at 17,400, with 1.1 lakh contracts. The maximum placed open interest at 16,000, with contracts of 1.1 lakh, and at 17,200, with more than one lakh contract.

This suggests that the Nifty50 has yet to clear resistance at 17,400 followed by a major hurdle at 17,500, and immediate support comes in at 17,200 followed by a strong cushion only at 16,000.

Long build up

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

symbol Current IO CPM Price change (%) Change in OI (%)
CGSB 1 64 250 3,11,54,200 1.14% 13.91%
IDFC 6,25,250 1,24,50,000 2.44% 29.55%
PFCs 21,29,600 42,47,000 3.22% 70.40%
Indiabulls housing 18,14,975 87,01,700 3.05% 24.53%
HDFC lifetime 24,36,950 3,49,15,100 2.18% 3.55%

Long relaxation

symbol Current IO CPM Price change (%) Change in OI (%)
Ashok Leyland 3,97,26,000 114.4 -1.25% -13.08%
Infosys 2,78,53,200 1,877.00 -0.96% -9.01%
Balrampur Chini 62,36,800 481.15 -1.17% -2.60%

(Decrease in open interest as well as price)

Short cover

symbol Current IO CPM Price change (%) Change in OI (%)
ICICI Bank 10,77,49,125 719.95 1.43% -5.21%
Tata Motors 6,88,53,150 433.15 1.83% -5.19%
L&TFH 5,17,14,580 71.5 6.80% -9.14%

(Increase in price and decrease in open interest)

symbol Current IO CPM Price change (%) Change in OI (%)
Vodafone Idea 9,13,50,000 10.3 -0.96% 15.38%
Infra GMR 2,28,60,000 38.45 -0.65% 9.36%

(Increase in open interest and decrease in price)

No fewer than 10 stocks in the BSE 500 universe reached 52-week highs: Sun Pharma, Titan, GHCL, GNFC, JK Paper, Bharat Dynamics, Cholamandalam Investment, PGHH, Timken and Trent.

One index stock hit a 52-week low: Thyrocare.

The India VIX – known in market parlance as the Fear Index – fell 6.3% to a one-month low of 22.6 on Thursday. Late last month, Russia’s decision to invade Ukraine sent the gauge to a 20-month high.

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