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.
What do the graphs suggest for Dalal Street?
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, Angel One, chief technical and derivatives analyst, Sameet Chavan, 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.
