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Indian equity benchmarks failed to hold on to the green amid mixed global cues on Tuesday, dragged by losses in financial, FMCG and IT shares though gains in oil & gas and metal stocks arrested the fall.

What do the charts suggest for Dalal Street?

The Nifty50 has formed a small negative candle on the daily chart with minor upper and lower shadows, suggesting a high wave-type pattern, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

The 50-scrip index could continue to move sideways over the next few sessions, he said.

Time to buy banking stocks on dips

The Nifty Bank continues to meet resistance around the 40,000 mark, said Kunal Shah, Senior Technical Analyst at LKP Securities.

"A slide below immediate downside support in the 39,500-39,400 zone will lead to a move towards 38,800-38,500 levels. The bias remains on the upside and once should take a buy-on-dips approach," he added.

Here are key things to know about the market ahead of the September 7 session:

SGX Nifty

On Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 209 points or 1.2 percent to 17,466 ahead of the opening bell on Dalal Street.

Global markets

Equities in other Asian markets tumbled on Wednesday tracking a weak session overnight on Wall Street, where investors returned to trade after a long weekend. MSCI's broadest index of Asia Pacific shares outside Japan was down 1.2 percent at the last count.

Japan's Nikkei 225 was down one percent and Hong Kong's Hang Seng 1.4 percent, and China's Shanghai Composite flat.

S&P 500 futures were down 0.5 percent. On Tuesday, the three main Wall Street indices fell around half a percent each amid volatile trade.

What to expect on Dalal Street?

HDFC Securities' Shetti believes a decisive breakout above crucial resistance at 17,800 could restore the upside momentum in the Nifty50.

"Any weakness from here could find important support around 17,450-17,400 levels," he said.

Key moving averages

Both Nifty50 and Nifty Bank stand above their six main simple moving averages.

Mohit Nigam, Head-PMS at Hem Securities, identified the following resistance and support levels:

FII/DII activity

Foreign institutional investors (FIIs) emerged net purchasers of Indian shares on Tuesday, in line to the trend in the past few weeks.

Last month, they made net purchases to the tune of Rs 22,025.8 crore — the first month of net inflows after 10 straight months of outflows, whereas domestic institutional investors (DIIs) net sold shares worth Rs 7,068.9 crore.

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Call/put open interest

The maximum call open interest is accumulated at the strike price of 17,800, with 1.7 lakh contracts, and the next highest at 18,000, with 1.6 lakh, according to exchange data. On the other hand, the maximum put open interest is at 17,000, with 1.7 lakh contracts, and at 17,500, with 1.3 lakh.

This indicates a major hurdle at 17,800 and immediate support at 17,500.

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)