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Indian equity benchmarks failed to end yet another volatile session in the green on Wednesday, scaling fresh 11-month closing lows. Nervousness persisted among investors as they awaited the outcome of a key Fed policy meeting.

Later in the day, the US central bank raised interest rates by 75 basis points — as widely expected — in a historic move to tackle a 40-year peak in inflation.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed a small negative candle on the daily chart with a minor upper shadow, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

The 50-scrip index is struggling to show any meaningful bounce from the crucial support zone of 15,600-15,700 levels, said Shetti, who sees the possibility of one more leg of downside before a bounce.

It's the bulls vs the bears on Street

There is indecisiveness between the bulls and the bears, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

"While the market is in an oversold condition, we may see a fresh pullback rally only beyond 15,800, above which, the index could move up to 15,950-16,000 levels. On the flipside, the correction may continue till 15,550-15,500 levels as long as it is below 15,800,” he added.

Here are key things to know about the market ahead of the June 16 session:

SGX Nifty

Singapore Exchange Nifty futures — an early indicator of the Nifty index — rose as much as 188.5 points or 1.2 percent to 15,859 ahead of the opening on Dalal Street.

Global markets

Most other Asian markets rose after the US central bank's policy move along expected lines. MSCI's broadest index of Asia Pacific shares outside Japan was up 0.4 percent in early hours.

Japan's Nikkei was up 1.6 percent and China's Shanghai Composite up 0.1 percent, but Hong Kong's Hang Seng was down 0.3 percent.

S&P 500 futures were up half a percent.

On Wednesday, the S&P 500 snapped a five-day losing streak with a 1.5 percent rise. The Fed's action to tame consumer prices without sparking a recession gave the Dow Jones a one percent lift. The tech stocks-heavy Nasdaq Composite jumped 2.5 percent.

What to expect on Dalal Street

HDFC Securities' Shetti is of the view that the short-term trend of the benchmark remains weak with rangebound action.

"Such lack of strength at important support signals chances of a false downside breakout or one leg of downside before a sharp bounce from the lows around 15,500 in the short term," he said.

Important levels to track

The Nifty50 remains nine percent below its long-term simple moving averages in a bearish signal.

Immediate support for the Nifty is at 15,611, below which, the index can quickly slip towards 15,000. The bulls will have to really find reasons to protect its biggest support at 15,611 and, most importantly, take it past the 16,107 hurdle," said Prashanth Tapse, Vice President (Research) at Mehta Equities.

FII/DII activity

Call/put open interest

The maximum call open interest is accumulated at the strike price of 16,000, with 1.7 lakh contracts, and the next highest at 16,300, with 1.6 lakh contracts, according to exchange data. On the other hand, the maximum put open interest is at 15,000, with 1.8 lakh contracts, and 15,500, with 98,000 contracts.

This suggests immediate resistance at 16,000 and immediate support at 15,500.

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 high

One stock on the BSE 500 — the broadest index on the bourse — hit the milestone: Varun Beverages.

52-week lows

A total of 26 stocks on the BSE 500 hit 52-week lows. Two Sensex stocks — Tata Steel and Tech Mahindra — were among them.

First Published:Jun 15, 2022 6:57 PM IST