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Indian equity benchmarks fell on Thursday tracking negative moves across global equities, as concerns remained about the impact of steep hikes in COVID-era interest rates on economic growth.

Investors' focus also turned to financial results from India Inc as the earnings season gathered steam following a strong start by TCS, the country's largest software exporter.

What do the charts suggest for Dalal Street?

The Nifty50 has formed a small negative candle on the daily chart, beside the positive candle of the previous session, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"The market has repeatedly tested support at the index's 200-day exponential moving average around 16,900, where it has failed to sustain an upmove... Any downward correction could be a 'buy on dips' opportunity," he said.

Nifty Bank fails to take out a key hurdle

The Nifty Bank faces stiff resistance around 39,500-40,000 levels and remains in a downtrend with a lower high and lower low formation, Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities, pointed out.

"A breach below 38,400 on a closing basis will lead to a further sell-off towards 38,000-37,500 levels. A move above immediate resistance at 39,000 will see some short covering moves," he said.

Here are key things to know about the market ahead of the October 14 session:

SGX Nifty

On Friday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — climbed as much as 335 points or two percent to 17,292 ahead of the opening bell on Dalal Street.

Global markets

Equities in other Asian markets surged on Friday, mirroring an overnight rally on Wall Street, as investors digested a red-hot inflation reading from the world's largest economy that fueled bets for another big rate hike by the Fed in its next revenue in November. MSCI's broadest index of Asia Pacific shares outside Japan was up 1.6 percent at the last count.

Japan's Nikkei 225 was up 3.4 percent, China's Shanghai Composite 1.6 percent and Hong Kong's Hang Seng 3.2 percent.

S&P 500 futures were up 0.7 percent. On Thursday, the S&P 500 jumped 2.6 percent higher, the Dow Jones 2.8 percent and the Nasdaq Composite 2.2 percent.

What to expect on Dalal Street?

HDFC Securities' Shetti believes the market will remain sideways for some more time, with no strength to sustain the highs.

"There is a possibility of one more dip to 16,800-16,750 levels in the next few sessions before any meaningful bounce from the lows," he said.

He sees strong support at 16,800 and immediate resistance at 17,150.

Key moving averages

The Nifty50 is almost 2.5 percent below its long-term moving average in a bearish sign.

Key levels to watch out for

The maximum call open interest is accumulated at the strike price of 17,500, with 1.7 lakh contracts, and the next highest at 17,400, with 1.4 lakh, according to provisional exchange data. The maximum put open interest is placed at 17,000, with 1.6 lakh contracts, and at 16,900, with almost 91,000 contracts.

This suggests an immediate hurdle at 17,400 and a strong base at the 17,000 mark.

FII/DII activity

Foreign institutional investors (FIIs) remained net sellers of Indian shares for the fifth session in a row on Thursday, according to provisional exchange data.

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 seven stocks in the BSE 500 universe — the broadest index on the bourse — reached the milestone: Sun Pharma, TVS Motor, Chalet, IDFC, RITES, KSB and ZF Commercial Vehicle Control Systems.

52-week lows

Fifteen stocks hit 52-week lows: