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Trade setup for Monday, September 5: Experts expect the Nifty50 to move within a 17,300-17,800 range this week. Here’s what the technical charts suggest.
Indian equity benchmarks finished a volatile session almost unchanged on Friday, as losses in oil & gas and IT stocks offset gains in financial and FMCG shares.
Globally, worries about aggressive hikes in COVID-era interest rates and slowing economic growth continued to hurt investors’ appetite for risk.
What do the charts suggest for Dalal Street?
The 50-scrip index appears to be moving within the 17,300-17,800 zone, he pointed out.
Nifty Bank may continue to surprise the Street
The market may consolidate further amid a feeble global sentiment though a mixed trend across sectors is offering ample trading opportunities, said Ajit Mishra, VP-Research at Religare Broking.
“The buoyancy in the banking and financial pack is playing a critical role and we expect this outperformance to continue ahead,” said Mishra, who suggests focusing on stock selection and using the dips to add quality names to the portfolio.
Here are key things to know about the market ahead of the September 5 session:
Wall Street indices fell on Friday, as early gains from a US jobs report that showed a labour market that may be starting to loosen gave way to worries about the European gas crisis. The S&P 500 and the Dow Jones fell 1.1 percent each, and the tech stocks-heavy Nasdaq Composite fell 1.3 percent.
S&P 500 futures were down 0.9 percent at the last count, suggesting a weak start ahead on Wall Street.
What to expect on Dalal Street?
HDFC Securities’ Shetti is of the view that the Nifty continues to be in a choppy short-term trend. He expects the Nifty50 to stay within a range of 17,300-17,800 this week.
“One may expect selling pressure building from the highs around 17,800 and the buying likely to emerge from the low of 17,300. Hence, the market could give ‘buy on dips and sell on rise’ opportunity in the near term,” he said.
The Nifty50 continues to be above its long-term simple moving average, but below its five-, 10-, 20-, 50- and 100-day levels.
Period (No. of sessions) | SMA | |
Nifty50 | Nifty Bank | |
5 | 17,566.4 |
39,434.3 |
10 | 17,557.4 | 39,376.4 |
20 | 17,600.2 | 39,387.4 |
50 | 17,555.5 | 39,083.7 |
100 | 17,644.2 |
39,027.3 |
200 | 17,473.3 | 38,498 |
FII/DII activity
Foreign institutional investors (FIIs) as well as domestic institutional investors (DIIs) took to net selling of shares on Dalal Street on Friday.
The maximum call open interest is accumulated at the strike price of 18,000, with 1.1 lakh contracts, and the next highest at 17,800 and 18,500, with more than 95,000 each, according to exchange data.
On the other hand, the maximum put open interest is at 17,000, with almost 90,000 contracts, and at 16,500, with almost 89,000.
This suggests a major hurdle at the 18,000 mark and immediate support a thousand points below.
Here are five stocks that saw an increase in open interest as well as price:
Stock | Current OI | CMP | Price change | OI change |
INDIAMART | 340,200 | 4,761.10 | 5.61% | 25.09% |
ASTRAL | 658,900 | 2,317 | 6.11% | 23.46% |
ITC | 74,108,800 | 325.3 | 2.15% | 16.12% |
UBL | 1,091,600 | 1,714.05 | 2.85% | 15.46% |
LT | 9,291,600 | 1,939 | 1.22% | 10.75% |
Long unwinding
Stock | Current OI | CMP | Price change | OI change |
GNFC | 5,701,800 | 733.5 | -0.46% | -2.10% |
SRF | 3,251,625 | 2,617.70 | -2.10% | -1.96% |
DLF | 36,471,600 | 397 | -0.79% | -1.92% |
BSOFT | 6,636,500 | 322.05 | -0.29% | -1.78% |
MRF | 60,730 | 84,360.70 | -1.05% | -1.70% |
(Increase in price and decrease in open interest)
Stock | Current OI | CMP | Price change | OI change |
APOLLOTYRE | 12,379,500 | 253.9 | 0.06% | -3.70% |
ASHOKLEY | 52,660,000 | 164.65 | 0.73% | -1.45% |
BALRAMCHIN | 7,801,600 | 362.35 | 0.71% | -1.00% |
ESCORTS | 1,538,900 | 2,069 | 2.57% | -0.75% |
GMRINFRA | 125,145,000 | 39.5 | 2.20% | -0.04% |
(Increase in price and decrease in open interest)
Stock | Current OI | CMP | Price change | OI change |
ESCORTS | 2,942,203 | 1,859.95 | -0.02% | 15.59% |
COROMANDEL | 1,148,000 | 1,049.15 | -3.56% | 15.00% |
BAJAJFINSV | 815,700 | 17,363.75 | -0.57% | 12.84% |
BIOCON | 16,974,000 | 295.7 | -2.39% | 11.03% |
PERSISTENT | 502,500 | 3,419.30 | -0.08% | 10.84% |
(Decrease in price and increase in open interest)
A total of 30 stocks in the BSE 500 universe — the broadest index on the bourse — hit 52-week highs:
ABB | ESCORTS | MHRIL |
ADANIENT | FEDERALBNK | NHPC |
ASAHIINDIA | GMM | NTPC |
ASHOKLEY | HAL | PATANJALI |
BANKBARODA | INDHOTEL | PCBL |
BEL | ITC | PIDILITIND |
CHOLAFIN | KALYANKJIL | SCHAEFFLER |
COCHINSHIP | KSB | SKFINDIA |
EIHOTEL | LAXMIMACH | TIMKEN |
ELGIEQUIP | M&M | TVSMOTOR |
52-week lows
Three stocks, on the flipside, hit 52-week lows: Biocon, Natco Pharma and Sanofi.
Read More: Trade setup for Sept 5: Nifty50 may continue to move sideways for now