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Tuesday, June 28, 2022
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    HomeBusinessBears continue to dominate D-Street, Will Sensex, Nifty bounce back on F&O...

    Bears continue to dominate D-Street, Will Sensex, Nifty bounce back on F&O expiry session?

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    Ahead of the weekly futures & options expiry, SGX Nifty was in the red, suggesting a continuation of the fall on Dalal Street Global cues were also weak.

    Domestic stock markets extended their downward move on Wednesday as bears remained in control. S&P BSE Sensex dropped 214 points or 0.39% to settle at 54,892 while the NSE Nifty 50 index shed 60 points or 0.37% and closed the day at 16,356. India VIX, the volatility index, was also seen inching lower, falling 2.87% to give up 20 levels. Ahead of the weekly futures & options expiry, SGX Nifty was in the red, suggesting a continuation of the fall on Dalal Street Global cues were also weak after Wall Street stock indices closed in the red. 

    Global watch: S&P 500 fell 1.08% on Wednesday, followed by a fall in Dow Jones and the tech-heavy NASDAQ index. Among Asian markets, the trend was similar with TOPIX, Nikkei 225, KOSPI, and KOSDAQ all down with losses. Hang Seng and Shanghai Composite were up with gains.

    What do the charts say: Nifty has continued to slip this week and after yesterday’s fall the index formed a reasonable negative candle on the daily charts, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that this formation is placed beside the small negative candle of previous session. “This pattern indicates choppy movement in the market with a negative bias,” he added.

    Levels to watch out for: “Until we see a change in the structure or data, traders should avoid bottom fishing and rather look for selling opportunities on pullback moves,” said Ruchit Jain, Lead Research, 5paisa.com. He added that immediate resistances for Nifty are now seen around 16520 and 16610 while supports are placed around 16260 and 16170. Meanwhile, Nagaraj Shetti finds comfort in the fact that stock markets have not seen significant selling pressure this week. “The current choppy movement could extend for another 1-2 sessions and the lows to be watched around 16200 levels. Strong overhead resistance is placed at 16450-16500 levels,” he added.

    FII and DII trades: Foreign Institutional Investors (FII) pulled out Rs 2,484 crore from domestic stocks on Wednesday. FIIs were also net sellers of index options. Domestic Institutional Investors (DII), however, were net buyers of equities, pumping in Rs 1,904 crore.

    Call and Put OI: For the June series, maximum Call Open Interest (OI) is at 17,000 strike, followed by 17,500 strike. On the other hand, Put OI is the most at 16,000 strike and 15,500 strike.

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