More weakness ahead for Nifty50? Check out the main market indices ahead of Monday’s session | Top stories

Benchmark Indian stocks ended a volatile session lower on Friday, extending losses to a fourth consecutive day. Weakness in most sectors, with IT, financials and metals being the hardest hit, dragged major indexes lower.

What do the charts suggest for Dalal Street now?

“Normally, such a doji formation after a reasonable movement in either direction is seen as an impending signal of a trend reversal. term,” Shetti said. , which remains of the view that the Nifty’s short-term trend is weak with high volatility.

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Nifty sinks below key levels

“Although we see 18,350 as a slight hurdle, we did not expect the Nifty to break out with such speed. After the index broke above 18,100, we had anticipated a further drop towards 17,800, but whatever happened in the last two sessions, with it even testing 17,500, surprised us negatively to some extent,” said Sameet Chavan, Chief Technical and Derivatives Analyst at Angel One. CNBCTV18.com.

“We mentioned how important 17,650 is in the short term and that the real damage from the recent uptrend would start below. On Friday we slipped below, but the way the market rallied during of the last hour, so we have to revise our levels a bit,” he said.

Here are the key things to know about the market ahead of the January 24 session:

Global Markets

Major Wall Street indexes fell on Friday as Netflix earnings disappointed investors. The S&P 500 closed down 1.9%, the Dow Jones fell 1.3% and the tech-heavy Nasdaq Composite fell 2.7%. The S&P 500 and Nasdaq posted their biggest weekly percentage declines since March 2020.

Earlier in the day, European stocks fell, with the Stoxx 600 index down 1.8%.

What to expect in Dalal Street

Angel One’s Chavan sees crucial support for the Nifty50 in the 17,500-17,400 area this week. “Although the overall situation is not good, we would still like to support our inclination towards relief measures. If a recovery were to occur, there would be no better levels than this,” he said.

He thinks the first sign of strength will likely start above 17,800, after which the index may recover the ground from 18,000 before the budget itself. “The first two sessions will be important for the market as they will set the tone ahead of the mega event (Budget)… Focus should be on the financial and automotive spaces, which are likely to be first in the event of a recovery” , he added.

Market participants will start the trading week by reacting to quarterly figures from index heavyweights Reliance Industries and ICICI Bank.

Ajit Mishra, VP of Research at Religare Broking, believes the Nifty should hold 17,600 for any meaningful rally or it could slip to 17,350. He suggests taking hedged positions until the market stabilizes.

Main levels to monitor

Exchange data shows that the maximum open interest on call is accrued at the strike price of 18,000, with 1.8 lakh contracts, and the next highest at 18,500, with 1.3 lakh contracts. lakh. On the other hand, the maximum sell open interest is placed at 17,000, with 1.1 lakh contracts.

This suggests a major hurdle at 18,000 and significant support only at 17,000.

Here are two stocks that have seen an increase in open interest as well as price, suggesting an accumulation of long positions:

Long relaxation

(Decrease in open interest as well as price)

Short cover

(Increase in price and decrease in open interest)

Short setup

(Increase in open interest and decrease in price)

52 Week Highs

As many as 15 stocks in the BSE 500 pack hit 52-week highs, including Power Grid, Sun Pharma Advanced, Tata Elxsi, Adani Green, Adani Transmission, Greaves Cotton and Lakshmi Machine.

52 week lows

Ten stocks hit 52-week lows: SBI Cards, IGL, Cadila Healthcare, Zydus Wellness, IndiaMART, Sanofi, Spandana Sphoorty, Jubilant Pharmova, Strides Pharma and MAS Financial.

Volatility indicator

India’s NSE VIX index – which measures volatility expectations in the market – climbed 6.2% on Friday to 18.9, its biggest jump since January 5.