Indian equity benchmarks resumed their record-breaking spree after a day's pause, with the Nifty50 index taking out the 17,000 level decisively. Gains across most sectors led by IT, fast-moving consumer goods, pharmaceutical and financial stocks pushed the market higher. Losses in select automobile and PSU banking shares limited the upside.

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So, what do the charts suggest for Dalal Street?

The index formed a long bull candle on the daily chart, surpassing Wednesday's negative candle, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. "This pattern has nullified a minor negative/consolidation pattern on the daily chart and displays strength of the upside momentum in the market. It is a positive indication and one may expect more upside in the short term," he said.

Long-term trend positive, but...

The market is likely to continue with the positive momentum as the economic recovery and the vaccination drive continue their northward journey, said Siddhartha Khemka, Head-Retail Research at Motilal Oswal Financial Services.

Investors around the globe await US jobs data due later in the day, for more clues on the timing of tapering stimulus by the US central bank. "Though the long-term trend is positive, one cannot ignore bouts of volatility, given the risk of a third wave of the pandemic, commodity-linked inflation and expectations of high earnings growth leading to rich valuations," he said.

Here are key things to know about the market before Friday's session:

SGX Nifty

Nifty futures trading on Singapore Exchange -- an early indicator of India's Nifty50 benchmark index -- were up 23.5 points or 0.14 percent at 17,283 at 8:01 am on Friday, signalling a mildly positive start ahead on Dalal Street.

Global markets

Shares in other Asian markets held their gains as traders awaited US employment data with global equities at record highs. MSCI's broadest index of Asia-Pacific shares outside Japan was flat, having posted gains in eight of the last nine sessions. Japan's Nikkei 225 index was up 0.38 percent, and MSCI's all-country world index edged higher, following five straight record closing highs.

S&P 500 E-Mini futures were up 0.07 percent, indicating a flat to positive opening on Wall Street on Friday. On Thursday, the three main US indices rose, with the S&P 500 and Nasdaq scaling record peaks.

What to expect on Dalal Street

HDFC Securities' Shetti expects more upside in the coming one or two sessions, before another round of consolidation or minor profit booking.

According to Rohit Singre, Senior Technical Analyst at LKP Securities, the 50-scrip index has shifted its support to the 17,175-17,050 zone. If it manages to hold those levels, more northward movements may be seen in the coming sessions, he said.

'17,000 a make-or-break level'

"Dips around these levels will be again a fresh buying opportunity. In case it fails to hold (those levels), we may see good profit booking... Still, a make-or-break level is 17,000," Singre added.

Rahul Sharma, Co-Founder of Equity99, expects banking, realty, auto, paper and metal spaces to be in focus on Friday.

Key levels to watch out for

Nifty50: The index has strong support at 17,200, followed by 17,150-17,075 levels, and immediate resistance at 17,250, followed by 17,300-17,350 levels, according to Sharma of Equity99.

On the hourly charts, a clear higher top-higher bottom formation has been formed for the day, indicating a very strong upside move, he said

Nifty Bank: The banking index finds immediate support at 36,700, followed by 36,550–36,500, and meets resistance at 36,950-37,000-37,150 levels, Sharma said.

ALSO READ | Can you bank on Bank Nifty now?

FII/DII activity

Net inflow by foreign institutional investors into the Indian capital market stood at Rs 348.52 crore on Wednesday, and that by domestic institutional investors came in at Rs 381.7 crore, exchange data showed.

Call/put open interest

The maximum call open interest is accumulated at the strike price of 17,300, and next at 17,500. On the other hand, the maximum put open interest is at the strike price of 17,200, NSE data shows. This indicates that resistance can be expected at 17,300, and then 17,500, and support comes in at 17,200.

Long build-up

Here are five stocks that saw an increase in open interest as well as price, suggesting a build-up of long positions:

Long unwinding

(Decrease in open interest and price)

Short-covering

(Decrease in open interest and increase in price)

Short build-up

(Increase in open interest and decrease in price)

Stocks hitting 52-week highs

More than 50 stocks in the BSE 500 index — the broadest index on the bourse — clocked 52-week highs. They included TCS, Tata Consumer, Tata Elxsi, Bharti Airtel, Hindustan Unilever, Wipro, HDFC Life, ACC, Ambuja Cements, UltraTech, Adani Transmission, SBI Life, Britannia, Marico, Dabur, Havells, Deepak Nitrite, Apollo Hospitals, InterGlobe Aviation, ICICI Lombard General, L&T Infotech, L&T Tech Services, Bata India, Polycab, Naukri, Mindtree, Dr Lal Pathlabs, IEX and United Breweries.

Stocks hitting 52-week lows

Not a single stock in the BSE 500 universe hit a 52-week low, though outside the 500-strong club, Aashka Hospitals, Arnold Holdings, Greencrest Financial Services, Premier Capital Services, PVP Ventures, Ridings Consulting Engineers, Smart Finsec and Vanta Bioscience were among the few stocks that hit 52-week lows.

Volatility gauge

The India VIX index — which measures the expectation of volatility in the market — rose 0.38 percent to 14.24 on Thursday, having moved within a range of 13.61-14.39 during the session.

Catch Friday's market action here | Stocks to watch

(Edited by : Aditi Gautam)

First Published:Sept 2, 2021 8:12 PM IST