March 29, 2022

If it holds higher than 17100, Nifty could retest 17325-17400; 5 things you should know before the bell rings

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SGX Nifty rose more than 100 points in the second session, suggesting that Dalal Street could continue its upward trend. Global cues were supportive.

Yesterday’s second-half trading session saw domestic benchmark indices rise higher, ending their losing streak. S&P BSE index closed at 57.593 points with 231 points, or 0.40%. NSE Nifty50 index closed at 17,222 with 69 points, or 0.40%. The Bank Nifty was also up, but the broader markets were mixed. SGX Nifty gained more than 100 points in the second session, suggesting that Dalal Street may be continuing its upward march. Global cues were supportive.

Global Watch:On Wall Street the tech-heavy NASDAQ grew 1.31%, closely followed by S&P 500, and Dow Jones. Asain markets: Shanghai Composite, Hang Seng and Nikkei 225 were all trading in green. Topix, KOSPI and KOSDAQ also traded in the green.

Technical take After closing with gains Monday, the Nifty50 formed a small body positive candle on the daily charts with a long shadow. Technically, this pattern suggests the formation of a bullish-hammer-type candle pattern. However, the pattern formed in a narrow range for a few sessions and could not be predicted,” Nagaraj Shetti Technical Research Analyst, HDFC Securities. He said that market action indicates buying from lower levels and from key lower supports.

5 things you should know before the bell ringsLevels to Watch for: While the Nifty has taken support again at 17000, the wider texture of the market remains non-directional according to Shrikant Chouhan (Head of Equity Research (Retail), Kotak Securities). “The market will likely retest the level 17325-17400 in the near future as long as Nifty holds the 17100 level,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. He said that a fall below this level could cause further weakness to 17000-1695. Nagaraj Shetti believes that the Nifty could not sustain a move above 17500 levels. This would open up upside targets at 17600-17800 levels in the near future.

FII, DII trades: Once again, foreign institutional investors (FII), were net sellers of domestic stock. Domestic markets saw FIIs pull out Rs 801 million. Domestic Institutional Investors, or DIIs, were net buyers and pumped in Rs 1,161 crore.

Call and put OI: The maximum call open interest (OI) for the March series is 18000 strike. The maximum OI for Put is 16000 strike.