It was for the first time in a month that the Nifty 50 ended lower for back-to-back trading sessions.

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Wednesday's close also marked the lowest level for the Nifty 50 since May 8, or in eight trading sessions.

Today may also turn out to be a volatile day amidst key earnings and the weekly options expiry of Nifty 50 and Nifty Bank contracts.

Further, today's session will see India's largest lender - State Bank of India report results along with other major companies like ITC, Bata India, United Spirits and GAIL.

What Are The Charts Indicating?

Chandan Taparia, Motilal Oswal

Observation: Nifty 50 forms bearish candle on daily charts but longer lower shadows indicate support-based buying.

Conclusion: Holding above Wednesday's close key for Nifty 50 to bounce.

Gaurav Bissa, InCred Capital

Observation: Nifty 50 closed below 100-day exponential moving average for the first time in 15 trading sessions.

Conclusion: Profit booking may continue till the index closes above a key level.

Rohan Patil, SAMCO Securities

Observation: Nifty 50's hourly chart has witnessed an ending diagonal pattern breakdown.

Conclusion: Trend may remain sideways to bearish in the near-term as indicators are overheated.

Nagaraj Shetti, HDFC Securities

Observation: Recent swing high of 18,458 can be considered to be the recent higher top for the Nifty 50.

Conclusion: Short-term reversal likely in the market on the downside.

Kunal Shah, LKP Securities On Nifty Bank

Observation: Selling pressure continued at higher levels.

Conclusion: Break below support levels will accelerate the downside move.

F&O Cues (May 18 Expiry)

Open Interest addition seen in 18,200 strike call (77 lakh shares), 18,250 call (57 lakh shares) and 18,300 call (53.2 lakh shares)

Addition in Open Interest also seen in 18,000 put (24 lakh shares), 18,050 put (20 lakh shares) and 18,150 put (13.2 lakh shares)

Nifty 50's Put-Call Ratio now at 0.83 from 0.89 on Tuesday.

Stocks Entering F&O Ban: Aditya Birla Fashion, Balrampur Chini, LIC Housing Finance

Stocks Still In F&O Ban: PNB, GNFC, Delta Corp, Manappuram Finance

What Do Global Cues Suggest?

Asian markets have opened higher this morning on hopes that the US will avoid a debt default.

The Nikkei 225 is up nearly 2 percent, while the Topix is up 1.2 percent, as Japan's imports fell further than expected, while exports too missed expectations.

South Korean indices Kospi and Kosdaq are up 0.6 percent and 0.7 percent respectively in early trade.

Hang Seng futures are also pointing towards a positive opening.

Wall Street staged a rebound last night with all three major indices gaining a percent each. The Dow surged over 400 points after House speaker Kevin McCarthy said that it is possible to get a deal by the end of the week.

TheSingapore (SGX) Nifty futures, which are an early indicator of how the Nifty 50 will begin trading, gained 43.5 points or 0.24 percent to 18,275.5, indicating a mildly positive start to the session.

Foreign investors had a small buy quantity on Wednesday in the cash market but they remained buyers nonetheless. However, domestic investors continued to remain net sellers.

Let us take a look at what F&O data is suggesting for specific stocks:

Fresh Longs - Increase In Price and Open Interest

Fresh Shorts - Decrease In Price but Increase In Open Interest

First Published:May 17, 2023 9:49 PM IST