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Indian equity benchmarks gave up most of their intraday gains in a choppy session on Friday, as Dalal street entered a new monthly derivatives series. Gains in metal and PSU banking stocks were offset by losses in FMCG and private banking names.

What do the charts suggest for Dalal Street?

The Nifty50 has formed a small negative candle on the daily chart with minor upper and lower shadows, and one can expect rangebound moves ahead with high volatility, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

One can expect the 50-scrip index to test levels towards 17,700-17,800 this week, he said.

All hunky-dory above 17,350

"One should avoid trading aggressively within the current range of 17,750-17,350 as it is difficult to predict the index's immediate path amid some global nervousness. As long as we remain above 17,350, there is no reason to worry," Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, told CNBCTV18.com.

Immediate support lies around 17,450 and only a slide below 17,300 will have the Nifty50 test the next support zone of 17,100-17,000 levels, said Chavan, who sees 17,700-17,750 as levels to watch out for on the upside. "The Nifty50 needs to cross these levels with some authority for the bulls to strengthen their stance," he said.

Here are key things to know about the market ahead of the August 29 session:

SGX Nifty

On Monday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 399 points or 2.3 percent to 17,260 ahead of the opening bell on Dalal Street.

Global markets

Equities in other Asian markets began the week deep in the red following sharp losses on Wall Street on Friday, after Fed Chair Jerome Powell sounded more hawkish than many had expected at the annual Jackson Hole symposium, denting nascent hopes for a more modest path of policy tightening. MSCI's broadest index of Asia Pacific shares outside Japan was down 1.5 percent at the last count.

Japan's Nikkei 225 was down 2.8 percent, China's Shanghai Composite 0.5 percent and Hong Kong's Hang Seng one percent.

S&P 500 futures were down one percent, indicating more pain ahead on Wall Street. On Friday, the three main US indices finished 3-4 percent lower.

What to expect on Dalal Street

HDFC Securities' Shetti believes the Nifty is likely to stay within its recent range with bouts of volatility.

He expects consolidation in the index to continue this week within a range of 17,800-17,300. "A decisive breakout on either side is likely to accelerate market momentum," he said.

Key moving averages

Currently, the Nifty50 and the Nifty Bank are holding up one and two percent above their long-term simple moving averages.

Mohit Nigam, Head-PMS at Hem Securities, identified the following support and resistance levels:

FII/DII activity

Foreign institutional investors took to net selling of Indian shares on Friday, in contrast to the trend in the past few weeks.

Call/put open interest

The maximum call open interest is accumulated at the strike prices of 17,700 and 18,000, with 1.4 lakh contracts each, and the next highest at 17,800, with 1.2 lakh, according to exchange data. On the other hand, the maximum put open interest is at 17,000, with more than 95,000 contracts, and 17,500, with more than 93,000.

This suggests an immediate hurdle awaits the Nifty50 at 17,700 and an immediate base stands at 17,500.

Long build-up

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

Long unwinding

(Increase in price and decrease in open interest)

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 18 stocks in the BSE 500 universe — the broadest index on the bourse — hit 52-week highs:

52-week lows

One stock hit a 52-week low: Shilpa Medicare.

First Published:Aug 28, 2022 7:11 PM IST