Trading Setup for December 15: Where’s the next stop for Nifty50? Check out the key market signals ahead of Wednesday’s session


Indian stock benchmarks extended losses for the third day in a row on Tuesday as renewed concerns about the Omicron variant of COVID-19 scared investors globally.

That Bank Nifty recovered almost all of its intraday losses to end up with a 0.1 percent drop.

What do the charts for Dalal Street suggest now?

Nifty50 has formed a small positive candle at the low points with smaller upper and lower shadows, suggesting the formation of a high-wave type pattern, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Normally, such a pattern warns after reasonable weakness warnings of a trend reversal, but a confirmation is required in this case, he said.

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Stuck in a row

The 50-scrip index will make a trend on the daily chart if it crosses 17,400 or breaks 17,200, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities. Above 17,400, there is a chance that Nifty will move on to 17,550 / 17,600 levels and find significant support at 17,000 / 16,950 levels below 17,200, he said.

Here are important things to know about the market before Wednesday’s session:

SGX Nifty

At 7:48 a.m. Wednesday, the Singapore Exchange (SGX) Nifty futures – an early indicator of the Nifty50 index – rose 1.5 points to 17,334.5, suggesting a flat opening ahead on Dalal Street.

Global markets

Shares in other Asian markets rose broadly, but investors were cautious ahead of a key US Federal Reserve meeting. MSCI’s broadest index of Asia Pacific equities outside Japan rose 0.1 percent in the early hours. Japan’s Nikkei 225 fell 0.1 percent, China’s Shanghai Composite rose 0.1 percent and Hong Kong’s Hang Seng rose 0.3 percent. S&P 500 futures were flat in Asia.

On Tuesday, the three main Wall Street indices ended 0.3-1.1 percent lower.

What to expect on Dalal Street

HDFC Securities’ Shetti sees opportunities for a sustainable bounceback in the coming sessions. “Levels of 17,500 and then 17,650 are important obstacles to see, and immediate support is placed at 17,200,” he said.

“The medium-term trend will remain bearish as long as the index does not cross the 17.650 level,” said Kotak Securities’ Chouhan, which expects commodity-related equities to be in focus on Wednesday.

Key levels to keep an eye on

Smart50: The index has support at 17,150 and resistance at 17,500, according to Palak Kothari of Choice Broking.

Bank Nifty: For the banking index, Kothari sees support at 36,300 and resistance at 37,700.

Foreign Institutional Investors (FIIs) net transferred Indian equities worth Rs 763.2 crore on Tuesday. However, domestic institutional investors made net purchases for Rs 425.4 crore, according to preliminary exchange data.

The maximum open interest rate has accumulated to the strike price of 18,000 with more than 1.6 lakh contracts, and the second highest of 17,600 with more than 1.5 lakh contracts. On the other hand, the maximum open interest rate is set at 17,000 with almost 89,000 contracts, according to exchange data.

This suggests immediate resistance at 17,600 followed by a major hurdle at the 18,000 mark and meaningful support at only 17,000.

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

Symbol Current OI CMP Price change (%) OI change (%)
GSPL 13.37.900 320.2 0.63% 21.09%
PFIZER 2,02,750 5,199.05 6.14% 13.38%
LUPIN 89,22,450 950.9 7.02% 13.33%
ABFRL 94,32,800 286.65 7.10% 10.17%
ELNET 1,82,28,194 206.5 2.84% 7.87%

Long relaxation

Symbol Current OI CMP Price change (%) OI change (%)
BATAINDIA 15,36,150 1,969.45 -2.12% -4.01%
NMDC 8,05,67,500 139.25 -6.13% -3.01%
CUMMINSIND 15,29,400 968 -2.71% -2.31%
FSL 82.29,000 172.9 -1.87% -2.15%
MANAPPURAM 1,85,07,000 174.55 -0.20% -2.07%

Short-coverage

Symbol Current OI CMP Price change (%) OI change (%)
DALBHARAT 5,40,750 1,913.10 1.32% -4.02%
LALPATHLAB 5,411,000 3,506.25 1.58% -2.70%
NAVINFLUOR 5,57,100 3,976.15 0.32% -2.18%
TORNTKRAFT 34,84,500 585.55 1.13% -2.11%
JINDALSTEL 3,59,62,500 401.3 1.17% -1.06%

Short structure

Symbol Current OI CMP Price change (%) OI change (%)
KOTAKBANK 1,68,40,800 1,846.90 -1.94% 28.23%
IEX 2,61,60,000 280.55 -2.08% 12.96%
CROMPTON 24.91.500 417.3 -2.66% 10.82%
PVR 26,62,594 1,431.10 -2.11% 10.68%
NAUKRI 13,26,375 5,388.05 -2.32% 9.93%

(Rise in open interest rate and fall in price)

In the BSE 500 index, Tech Mahindra, Adani Total Gas, APL Apollo Tubes, Birlasort, Minda Industries, Raymond and TTK Prestige were among the 10 stocks that reached 52-week highs.

Lowest 52 weeks

On the other hand, only one stock in the broadest index on the stock exchange hit a low of 52 weeks: Gulf Oil Lubricants.

The NSE’s India VIX index – which measures the expectation of volatility – jumped 2.3 percent to settle on 17 level Tuesday, continues to rise for the second day in a row.

(Edited by : Abhishek Jha)

First published: IS

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