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Indian equity benchmarks extended gains to a third straight day on Friday to clock fresh one-month peaks, led by financial, FMCG and IT shares.

Investors await more of corporate financial results for domestic cues after TCS — India's largest software services exporter — kicked off the earnings season last week.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed a small negative candle at the highs on the daily chart with a minor lower shadow, suggesting the continuation of upside momentum in the market, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"If the 50-scrip manages to stay above 16,200 and moves up in the next 1-2 sessions, it could mean an important trend reversal on the upside," he said.

Nifty50 poised to cross 16,430

The short-term structure appears to be bullish and the way the broader market behaved towards the fag-end of the last week, it certainly augurs well for the bulls, Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, told CNBCTV18.com.

He expects strong support at 16,000-15,900 levels this week and key resistance in the 16,350-16430 zone.

"If global markets support, we may even go beyond 16,430, which will trigger the next leg of a rally. Until then, although we remain sanguine, by no means one should become complacent. It’s better to adopt a ‘one step at a time’ strategy and look to book timely profits wherever necessary as far as momentum trades are concerned," he said.

Here are key things to know about the market ahead of the July 11 session:

SGX Nifty

Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — declined as much as 69.5 points or 0.4 percent to 16,158 on Monday ahead of the opening on Dalal Street.

Global markets

Equities in other Asian markets largely moved in the red in early hours on Monday following a sluggish session on Wall Street. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.8 percent at the last count.

China's Shanghai Composite was down 0.7 percent and Hong Kong's Hang Seng 1.7 percent, though Japan's Nikkei 225 was up 1.3 percent. S&P 500 futures were down 0.6 percent.

On Friday, Wall Street indices were a mixed bag at the end of a volatile session as investors tried to comprehend how a robust jobs report would influence the Fed and its plans to aggressively hike interest rates. The S&P 500 declined 0.1 percent and the Dow Jones 0.2 percent, though the tech stocks-heavy Nasdaq Composite eked out a gain of 0.1 percent.

What to expect on Dalal Street

HDFC Securities' Shetti believes the Nifty50's short-term trend remains positive.

"The index has sustained above the crucial hurdle of 16,170, which indicates the possibility of a move towards 16,500 this week, with immediate support around 16,150-16,100 levels," he said.

Important levels to track

The Nifty50 has trimmed the gap from its long-term simple moving average to five percent from seven percent.

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

FII/DII activity

Call/put open interest

The maximum call open interest is accumulated at the strike price of 16,900, with more than 79,000 contracts, and the next highest at 16,500, with almost 78,000, according to exchange data.

The maximum put open interest is at 16,000, with nearly 90,000 contracts, and 16,200, with more than 79,000.

This suggests a strong hurdle at 16,500 and a strong cushion at 16,000.

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

Six stocks on the BSE 500 — the broadest index on the bourse — touched the milestone: ITC, Mahindra & Mahindra, ABB, Siemens, Tube Investments and Varun Beverages.

52-week lows

No stock in the 500-scrip universe hit a 52-week low.

Fear index

The India VIX — known in market parlance as the fear gauge — eased 4.2 percent to 18.4 on Friday.

First Published:Jul 10, 2022 10:51 PM IST