The Nifty 50 index showed no signs of exhaustion on Tuesday, comfortably crossing Monday's high to close above the mark of 17,700.

Share Market Live

NSE

Tuesday's gains also took the Nifty 50 index to a one-month high and within touching distance of the March 6 swing high of 17,799. At current levels, the index is 77 points adrift of the same.

A consensus that has emerged on the street is that the Nifty 50 remains in a buy-on-dips mode as long as it remains above the 17,500 mark.

Financials were back in action after Monday's underperformance. The index has added nearly 2,000 points since the closing of March 24.

However, IT stocks remained under pressure on Tuesday with the Nifty IT index declining by over a percent. All 10 index constituents ended lower, including TCS and Infosys. TCS will report its March quarter earnings after market hours today.

What will also be reported after market hours in today are consumer price inflation numbers of India and the US.

Jyotivardhan Jaipuria of Valentis Advisors believes that some positives are beginning to emerge in the market after 18 months of caution. He expects the Fed to pause hiking interest rates next month which in turn could help equities.

"There is, of course, one of the concerns about a slowdown, which will be plaguing equity markets this year. But if we look at the next 12-18 months, we'll get a positive return, we probably could end up with like a double digit positive return next 18 months or something," he said.

What do the charts suggest for Dalal Street?

Jai Bala of cashthechaos.com continues to believe that this upmove on the Nifty from the March 20 low of 16,828 is a counter-trend bounce and this is likely to continue until the index remains above the 17,502 mark, which is now a key level on the downside. He sees resistance for the index first at 17,800 and then at 18,000. Bala also maintained that the Nifty 50 will reverse course pretty soon.

The Nifty 50 took out another key resistance of the downward sloping trend line on Tuesday, which was placed at 17,680 levels, according to Nagaraj Shetti of HDFC Securities, who also said that the negative pattern formed on Monday has been nullified. He expects the Nifty 50 to move towards levels of 18,200 on the upside, in case it manages a decisive break above the 17,800 mark.

With regards to the Nifty Bank, Bala said that HDFC Bank and SBI hold the key for the index, which is likely to face resistance at levels of 41,500 and further higher at 41,990. On the downside, supports are seen at 40,700 and 40,200. Kunal Shah of LKP had mentioned that the index can move higher towards 42,000 in case it manages a close above 41,200, which it managed to do so on Tuesday.

Here are key things to know about the market ahead of the trading session on April 12:

SGX Nifty

On Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty 50 index — was flat at 17,802.5, thereby pointing to a subdued opening for the market.

Global Markets

Most Asian markets have opened higher on Wednesday as investors await key inflation data from the US later this evening, which will determine the Fed's path forward in terms of interest rates.

The Nikkei 225 has gained 0.4 percent, while the Topix is up 0.6 percent in early trade. The Kospi is flat a day after Bank of Korea held benchmark interest rates at 3.5 percent. However, Hang Seng futures are pointing to a negative start.

Tech stocks underperformed on Wall Street overnight with the Nasdaq ending 0.4 percent lower. The S&P 500 ended flat, while the Dow Jones added another 100 points.

What to expect on Dalal Street

Rupak De of LKP Securities believes that the Nifty 50 has sustained above key moving averages and immediate support is seen at 17,640. He expects the rally to extend towards levels of 17,850 and 17,970 and wants to adopt a buy-on-dips strategy as long as the index remains above 17,500.

The key level to track for the Nifty 50 will now be 17,800, but considering its momentum, it is likely to break higher and move towards 18,000 in the near term, said Rajesh Bhosale of Angel One. However, he advises traders to not be complacent and not rule out a possibility of a breather post the surge. Immediate support is now at 17,600 with a key one on the downside at 17,500.

Key Levels To Track

For tomorrow's weekly options expiry, the 18,600 strike call of the Nifty 50 added nearly 27 lakh shares in Open interest, while the 17,900 call also added 21.3 lakh shares.

Open Interest shedding was seen in the 17,600 call (22 lakh shares) and 17,650 call (20.37 lakh shares).

Nifty 50's put-call ratio is now at 1.2 from 1.09 on Monday. Delta Corp is the stock that has entered the F&O ban.

FII/DII activity

Long Build-Up (Increase In Price and Open Interest)

Short Build-Up (Decrease In Price and Increase In Open Interest)

First Published:Apr 12, 2023 6:22 AM IST