After helping Nifty decisively pass 17,000, Bulls can stay in charge of the street

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India’s equity benchmarks hit new three-month highs on Friday, jumping for the third session in a row, led by gains across most sectors. Gains in financials, oil and gas, and computer stocks pushed major indices higher.

Hopes for the prospect of less aggressive rate hikes from the Fed in the coming months than previously expected boosted global sentiment.

What do the graphs suggest for Dalal Street?

According to Nagaraj Shetti, Technical Research Analyst at HDFC Securities, the Nifty50 formed a long bullish candle on the daily chart with a higher open, after clearing crucial resistance at 16,800.

He believes the underlying trend of the 50-stock index is strongly positive.

Moving the index beyond 17,000, a psychologically important level that coincides with its 200-day simple moving average, is an encouraging sign for bulls, Sameet Chavan, chief technical and derivatives analyst, Angel One told CNBCTV18.com.

He is of the view that the momentum can be expected to continue as long as the gap area from 17,018 to 16,948 is not challenged or filled.

Dalal Street could see some consolidation ahead, but the nuance in broader markets should remain strong, he said.

Here are the key things to know about the market ahead of the August 1st session:

Global Markets

Wall Street indices jumped on Friday amid positive business news that offset worries about rising labor costs and other indicators of continuing inflation. The S&P 500 rose 1.4%, the Dow Jones 1% and the Nasdaq Composite 1.9%.

Earlier in the day, European markets mirrored the strength of Asian markets. The pan-European Stoxx 600 index ended up 1.3%.

What to expect in Dalal Street

HDFC Securities’ Shetti expects the Nifty50 index to reach levels of 17,600-17,800 in the next few weeks, but warns that minor downside corrections or consolidations cannot be ruled out. “Strong support is placed at the 16,950-16,800 levels,” he said.

Important levels to follow

In a bullish signal, the Nifty50 and Nifty Bank remain at least six percent above their long-term simple moving averages.

Period (Nb of sessions) ADM
Nifty50 Clever bank
5 17,125.6

37,488.2

ten 17,072.8 37,455
20 16,922 37,268.6
50 16,728 36,839.6
100 16,477.7

36,065

200 16,206.3 35 138

Chavan sees 17,380 followed by 17,450 as immediate levels to watch this week.

FII/DII activity

Open call/sell interest

The maximum call open interest is accrued at the strike price of 17,600, with nearly 98,000 contracts, and the second highest at 18,000, with 94,000 contracts, according to exchange data. On the other hand, the maximum open interest to sell is 17,000, with 1.2 lakh contracts, and 16,900, with 94,000 contracts.

This suggests strong resistance at 17,600 and an immediate base at 17,000.

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

Store Current IO CPM Price change (%) Change in OI (%)
DELTACORP 13,526,300 197.3 1.70% 20.68%
CHAMBLFERT 4,527,000 324.5 0.81% 18.56%
MFSL 1,307,150 865.65 4.12% 18.25%
CIPLA 8,075,600 979.1 1.21% 16.19%
SBILIF 6,092,250 1,301.05 8.87% 15.18%

Long relaxation

Store Current IO CPM Price change (%) Change in OI (%)
LAURUSLABS 6,543,900 523.25 -0.65% -5.39%
SBIN 47,040,000 529.45 -0.99% -4.95%
LICHSGFIN 13,284,000 383 -0.07% -3.66%
COROMANDEL 1,221,500 1,037.25 -2.29% -2.29%
ELP 3,658,600 1,780 -3.67% -1.64%

(Increase in price and decrease in open interest)

Store Current IO CPM Price change (%) Change in OI (%)
DIXON 715 875 3,695 4.59% -13.64%
CONCOR 3,837,000 708.75 3.41% -10.01%
Crompton 3,000,000 394.45 2.65% -9.05%
BHARATFORG 6,801,000 734.5 0.64% -7.47%
CANFINHOME 2,476,500 595.6 2.08% -6.81%

(Increase in price and decrease in open interest)

Store Current IO CPM Price change (%) Change in OI (%)
DRREDDY 1,970,750 4,111 -4% 31.50%
INTELLECT 1,160,250 634.15 -5.44% 23.59%
JUBLFOOD 9,771,250 554 -2.58% 16.94%
IBULHSGFIN 20,540,000 110.8 -4.11% 16.69%
SRTRANSEND 3,911,400 1,366.85 -6.09% 10.71%

(Decrease in price and increase in open interest)

52 Week Highs

A total of 19 stocks from the BSE 500 – the stock market’s broadest index – broke the milestone:

ADANIENT COALINDE INOXLEISUR SCHAEFFLER
ADANITRANS COROMANDEL NAV INFLUENCER SKFINDIA
ASHOKLEY CUMMINSIND PAGEIND TIMKEN
ATGL GESHIP Recorder TVSMOTOR
BLUEDART HAL SBILIF

52 week lows

No stocks in the 500-pack script hit a 52-week low.

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