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Nifty50 can build on momentum as bulls break decisively above 18,500


Trade setup for Monday, November 28: According to experts, a sustained Nifty50 move above 18,600 is likely to continue towards a near-term high of 18,950. Here’s what the technical charts suggest.

India’s equity benchmarks ended a choppy session barely in the green on Friday, as gains in oil and gas, IT and auto stocks were offset by losses in financials and FMCG stocks.

Globally, investors remained on guard, fearing that a prolonged period of rising benchmark interest rates could hamper economic growth.

What do the graphs suggest for Dalal Street?

The Nifty50 formed a small negative candle on the daily chart with a minor lower shadow, reflecting a pause in the market after Friday’s sharp rise, according to Nagaraj Shetti, technical research analyst at HDFC Securities.

This could be seen as a pattern of continuation of the uptrend, he said.

More card benefits for Nifty Bank

Sameet Chavan, chief technical and derivatives analyst at Angel One, believes that the continued price action at Nifty Bank suggests that Nifty Bank is likely to continue its momentum.

“The unfilled gap at the 42,550-42,500 levels is likely to cushion any intra-week blip while the bullish gap present around the 42,000 is likely to act as an anchor. aside, the new breakout has opened the possibility for the banking index to march towards the 43,500-44,000 area in the coming period,” he said. CNBCTV18.com.

He views any minor correction in the index as an opportunity to add new long positions.

Here are the key things to know about the market ahead of the November 28 session:

Wall Street indices succumbed to selling pressure on Friday amid weakness in Apple shares in a shortened holiday trading session for Wall Street. The S&P 500 fell slightly, the Dow Jones 0.5% and the Nasdaq Composite 0.5% each.

Earlier in the day, European stocks fell as faster-than-expected rate hikes continued to spook investors. The pan-European Stoxx 600 index ended down 0.1%.

What to expect in Dalal Street

HDFC Securities’ Shetti thinks the Nifty50 continues to be in a positive underlying trend. The index broke through crucial resistance last week and is expected to hit all-time highs above 18,606 this week, he said.

“A sustained move above 18,600 is likely to pull the 50 certificate index towards a near-term milestone of 18,950,” Shetti added.

Main levels to monitor

The maximum call open interest is accrued at the strike price of 19,000, with 1.6 lakh contracts, and the second highest at 18,600, with nearly 97,000 contracts, according to exchange data. provisional. The maximum open interest is 18,300, with contracts of 1.4 lakh, and 18,500 and 18,400, with contracts of 1.2 lakh each.

This suggests immediate resistance at 18,600 and a cushion in the 18,400-18,500 band.

Foreign institutional investors (FIIs) continued to be net buyers of Indian stocks on Friday after four days of selling, according to preliminary trading data.

Here are five stocks that have seen an increase in open interest as well as price:

StoreCurrent IOCPMPrice change (%)Change in OI (%)
BHEL100,548,00083.05ten%26.22%
ESCORTS974 8752,282.954.63%19.97%
TOURBILLON656,6001,530.951.92%17.86%
L&TFH44,994,80887.855.59%14.66%
RBLBANK43,070,000151.45.76%14.60%

Long relaxation

StoreCurrent IOCPMPrice change (%)Change in OI (%)
APOLLOHOSP1,675,5004,825-0.42%-17.32%
ICICIBANK81 481 125937.15-0.83%-5.18%
INTELLECT5,151,000446.9-0.73%-2.65%
COFORGE632,2503,888.15-0.07%-2.18%
GODREJCP5,813,000866.65-0.32%-2.03%

(Increase in price and decrease in open interest)

StoreCurrent IOCPMPrice change (%)Change in OI (%)
HDFCLIFE16,080,900591.12.62%-8.91%
ZYDUSLIFE10,236,600404.42.25%-7.30%
PERSISTENT569,7003,9911.71%-5.50%
LION CUB7,155,000188.251.43%-5.10%
GLI10,462,375434.653.49%-4.17%

(Increase in price and decrease in open interest)

StoreCurrent IOCPMPrice change (%)Change in OI (%)
GUJGASLTD3,168,750493.6-0.65%29.39%
ICICIPRULI13,120,500457.5-2.03%21.89%
SRTRANSEND3,591,0001,257.85-2.22%12.87%
SIEMENS1,905,7502,800.75-1.57%6.72%
TVSMOTOR4,478,6001,038.25-1.45%6.71%

(Decrease in price and increase in open interest)

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