Indian equity benchmarks made a comeback on Tuesday following two days of losses, in a rebound aided by gains across sectors. Heavyweights Reliance, Infosys and Bajaj Finance were the biggest movers for headline indices, though weakness in Axis Bank limited the upside.

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The India VIX -- known in market parlance as the fear index -- dropped 9.7 percent, its biggest single-day fall since April 1.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed a reasonable positive candle on the daily chart with minor upper and lower shadows, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"The market could make an attempt to move up further in the short term but sustainability at the highs could be a cause of concern...The lower area of 16,800 has now become an important valuation support. The Nifty has witnessed sharp two sessions of upmove from this support in the recent past," he said. (Key factors and events to track this week)

17,000-17,100 an important zone

"The 50-scrip index's climb above the 17,000 mark as well as the 50-day simple moving average (17,117.6) is grossly positive for the market... The intraday formation is positive with the Nifty heading towards 17,300-17,350 levels," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

"A quick intraday correction is not ruled out if it trades below 17,100, which may lead to the index retesting 17,050-17,000 levels," said Chouhan, who is of the opinion that support for traders has risen by 100 points to 17,100.

Here are key things to know about the market before the April 27 session:

SGX Nifty

Singapore Exchange (SGX) Nifty futures -- an early indicator of the Nifty50 index -- plunged as much as 318 points or 1.8 percent to 16,910 ahead of the opening of the Indian market on Wednesday.

Global markets

Equities in other Asian markets started Wednesday sharply lower tracking a more than one-year low on the US tech stocks-focused Nasdaq Composite overnight. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.9 percent in early hours.

Japan's Nikkei 225 was down 1.9 percent, Hong Kong's Hang Seng 0.2 percent, South Korea's KOSPI 1.2 percent and Singapore's Straits Times 0.1 percent. China's Shanghai Composite was flat.

S&P 500 futures held up 0.2 percent. On Tuesday, the Nasdaq Composite tanked four percent, and the S&P 500 and the Dow Jones fell 2.8 percent and 2.4 percent respectively.

What to expect on Dalal Street

HDFC Securities' Shetti believes the 50-scrip index will find difficult to surpass the upper area of the 17,300-17,400 zone.

"Any lack of strength at the highs could bring another round of selling pressure to retest the lower support at 16,800," he said.

Levels to watch out for

The 50-strong gauge crossed its five- and 50-day moving averages after a day's gap.

Mohit Nigam, Head-PMS at Hem Securities, mentioned the following levels to watch out for:

FII/DII activity

Foreign institutional investors (FII) net sold Indian shares worth Rs 1,174.1 crore on Tuesday, according to provisional exchange data. However, domestic institutional investors (DIIs) made net purchases of Rs 1,643.8 crore.

ALSO READ: FIIs sold $5 billion worth Indian shares for 6th straight month

Call/put open interest

The maximum call open interest is accumulated at the strike of 17,500, with 1.7 lakh contracts, and the next highest at 17,800, with 1.3 lakh contracts. The maximum put open interest is at 17,000, with 1.5 lakh contracts, and the next highest at 16,400, with 1.4 lakh contracts.

This suggests major resistance stays at 17,500 and then 17,800, and immediate support is at 17,000.

Long build-up

Here are five stocks that saw an increase in open interest as well as price:

Long unwinding

(Decrease in open interest as well as price)

Short covering

(Increase in price and decrease in open interest)

Short build-up

(Decrease in price and increase in open interest)

52-week highs

A total of 11 stocks on the BSE 500 -- the broadest index on the bourse -- hit 52-week highs, including Adani Enterprises, Adani Ports, Adani Power, Cholamandalam Investment, Page Industries and Varun Beverages.

52-week lows

No stock hit a 52-week low.

First Published:Apr 26, 2022 7:04 PM IST