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Nifty50 may sustain Decline Until the Next Obstacle at 15,700-15,800 on June 22

Following a six-day sell-off that shaved 7% off their value, the benchmarks of Indian equities rose for a second consecutive day on Tuesday, bolstered by broad-based gains.

Fears of aggressive rate hikes and their impact on economic growth, however, prompted investors to exercise caution.

What do the current trends indicate for Dalal Street?

According to Nagaraj Shetti, Technical Research Analyst at HDFC Securities, the formation of a long bullish candle on the Nifty50’s daily chart is a positive sign indicating a short-term bottom reversal.

The 50-stock index faces crucial resistance between 15,700 and 15,800, where weakness may emerge, according to him.

Key Assistance at 15,250

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, stated that the near-term trend for the Nifty is weak, despite the daily chart indicating a further uptrend to 15,850.

“The Nifty’s support level has increased to 15,500 from 15,250. As long as the index trades above 15,500, it has a good chance of reaching 15,750,” he said.

Prior to the June 22 trading session, here are some important market-related details:

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Global Markets

European stocks opened the day in the black, recouping a portion of last week’s losses after hitting 17-month lows, but investors remained cautious due to concerns about the impact of aggressive COVID-era interest rate hikes on economic growth.

At last count, the pan-European Stoxx 600 index was up 0.9%.
Futures for the S&P 500 were up 1.8%, indicating a higher opening on Wall Street as investors prepared to return to the market after the weekend.

Expectations on Dalal Street

Shetti of HDFC Securities believes that any consolidation or minor weakness over the next few sessions could result in a sharp breakout to the upside at 15,800.

“The fear of missing out can influence the mentalities of traders, where bargain hunting and value purchasing are likely themes.” “Mehta Equities’ Vice President (Research), Prashanth Tapse, remarked. As long as the index remains above the critical support level of 15,363, he said, the theme of intraweek trading could shift to bullish optimism and bearish reluctance.

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Important Levels to Track

The Nifty50 index is 9% below its long-term simple moving average, despite surpassing its five-day level.

Period (No. of sessions)Simple moving average
515,467
1015,787.8
2016,119.7
5016,482.6
10016,807.7
20017,224.1

Mohit Nigam, Head-PMS at Hem Securities, highlighted significant resistance and support levels:

Call/submit interest

According to exchange data, the most call open interest is accumulated at the strike price of 16,000 with two million contracts, followed by 16,200 with 1.1 million contracts.

The maximum put open interest is 15,000, with 1,400,000 contracts, followed by 15,300, with 1,100,000 contracts.

This indicates strong resistance at the 16,000 level and immediate support at 15,300, followed by a solid cushion at 15,000.

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Extended Buildup

Here are five stocks that experienced an increase in both open interest and price:

StockCurrent OICMPPrice changeOI change
IDFCFIRSTB203,396,40030.552.17%28.09%
VEDL48,059,300238.23.07%20.23%
NTPC63,606,300140.451.85%11.15%
DELTACORP12,732,800179.451.82%10.62%
NAVINFLUOR348,7503,6255.06%10.00%

Long unwinding

StockCurrent OICMPPrice change (%)OI change (%)
ALKEM200,6003,087.35-1.09%-1.99%
PAGEIND100,81539,119-1.93%-1.41%

Brief Covering

StockCurrent OICMPPrice changeOI change
GNFC2,823,600587.58.12%-9.21%
APLLTD1,077,300728.252.42%-5.13%
RECLTD26,484,000116.054.55%-4.87%
AMARAJABAT5,853,000465.14.13%-4.24%
IEX35,051,250174.753.25%-4.12%

Brief Buildup

StockCurrent OICMPPrice changeOI change
MARICO9,939,000483.4-0.39%3.74%
PIDILITIND3,055,7502,096.50-0.21%3.36%
CROMPTON2,895,200325.95-1.17%3.04%

52-week Highs

No stock in the universe of the BSE 500, the broadest index on the exchange, reached the milestone.

52-week Lows

Bharat Petroleum, IDFC First, JK Cement, NCC, Alok, Jubilant Pharmova, KNR Constructions, Orient Electric, Punjab & Sind Bank, and V-Mart are among the 10 stocks in the 500-stock index that have fallen to 52-week lows.

Also Check: Nifty Develops a Hammer Candlestick And Needs to Hold 15,183 in Order to Continue Higher

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