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Nifty50 may be preparing for pullback

India’s equity benchmark ended a rather low and volatile session on Friday, with financial stocks limiting the downside, but IT stocks weakened to increase losses six times in a row.

Global markets have shown signs of recession, but investors have fallen behind due to concerns over aggressive interest rate hikes in the COVID era and their impact on economic growth.

What does the chart currently suggest to Daral Street?

Nifty50 formed a small body positive candle with upper and lower shadows on the daily chartAccording to Nagarajshetti, technical research analyst at HDFC Securities.

He sees the potential of A minor pullback from the current level or low.

Important levels to watch out for at Nifty Bank

After the bullish and bearish battle on Friday, Nifty Bank appears to be in the oversold territory, said Kunalshire, senior technical and derivatives analyst at LKP Securities.

“If the bank index is backed by 32,500, it could be pulled back towards 33,500. If it violates, there could be new sales towards 30,000,” he said. ..

Here are some important things to know about the market prior to the June 20th session:

Global market

US stocks rose sharply on Friday as investors entered a long weekend, but caution remained amid growing concerns about a recession. The Dow Jones fell 0.1%, but the S & P 500 rose 0.2% and the tech-rich Nasdaq Composite rose 1.4% as the central bank scrambled to tackle decades of high inflation.

Earlier that day, the European market rose and the Stoxx 600 rose 0.1%.

What to expect on Daral Street

HDFC Securities’ Shetty believes that market bounces can be used as a short-term selling opportunity.

“We expect significant resistance at 15,600 on the Nifty 50, which is unlikely to break in a hurry. After a small bounce, the index can drop to the 15,000-14,800 level in the short term,” he said.

Important level to track

In strong bearish signs, both Nifty 50 and Nifty Bank are 11% below the long-term simple moving average.

Period (number of sessions) Simple moving average
Nifty50 Nifty Bank
Five 15,570.6 33,083.3
Ten 15,987.5 34,023.8
20 16,187.2 34,582.4
50 16,571.8 35,234
100 16,845.4 35,975.2
200 17,239.5 36,761.2

Palak Kothari, a Research Associate at ChoiceBroking, pointed out key resistance and levels of support.

index support resistance
Nifty50 15,000 15,500
Nifty Bank 32,300 33,800

FII / DII activity

Call / Put Open Interest

According to exchange data, the maximum call open position is accumulated at an exercise price of 16,000 with a 1.3 easy contract and the next highest at 16,300 with a 1.2 easy contract. The maximum put open position is 15,000, which is about 82,000 contracts. And for 14,500, there are 79,000 contracts.

This suggests a strong resistance at the 16,000 mark, followed by a strong resistance at the 16,300 mark, and immediate support at 15,000.

The five stocks whose open interests and prices have increased are as follows.

stock Current OI CMP Price fluctuation (%) OI change (%)
HAL 1,539,475 1,840.20 2.49% 21.17%
RECLTD 24,840,000 112.95 1.03% 6.62%
SRTRANSFIN 3,081,200 1,143.10 1.48% 5.54%
CHOLAFIN 8,143,750 636.2 2.28% 3.22%
Balatoforg 7,057,500 629.8 0.26% 2.92%

Long rewind

stock Current OI CMP Price fluctuation (%) OI change (%)
GUJGASLTD 5,355,000 414.5 -2.26% -20.19%
Hmm 13,172,600 994.45 -1.12% -6.84%
Doctor Reddy 1,811,625 4,155.20 -3.07% -6.10%
IBULHSGFIN 27,503,200 96.85 -0.67% -5.80%
AARTIIND 3,585,300 689.2 -0.37% -4.84%

(Open interest and price decline)

Short cover

stock Current OI CMP Price fluctuation (%) OI change (%)
Chromepton 3,507,900 323.95 1.58% -8.94%
DELTA CORP 14,310,600 184.8 12.96% -8.07%
GNFC 2,739,100 610.15 1.82% -7.74%
PNB 223,152,000 28.8 1.41% -7.33%
RBL BANK 46,597,200 82.7 0.30% -6.05%

(Price increase and open interest decrease)

stock Current OI CMP Price fluctuation (%) OI change (%)
Petronette 14,601,000 204.5 -4.53% 9.18%
Wipro 28,981,600 407.55 -3.70% 8.58%
MPHASIS 1,638,350 2,195.20 -5.14% 8.13%
BSOFT 2,853,500 332.95 -2.92% 7.97%
Giant 5,795,625 1,942.95 -5.66% 7.65%

(Price decline and open interest increase)

A total of 128 BSE 500 stocks (the widest index on the stock exchange) hit 52-week lows, with TCS, Infosys, Wipro, Tech Mahindra, HDFC Bank, HDFC, Tata Steel, Asian Paints, Asix Bank, Bajaj Finance, HCL Tech, IndusInd, Ultra Tech.

52 weeks high

One stock in the over 500 index was able to reach a 52-week high: Hindustan Aeronautics.

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