After recovering with a modest gain this week against resilient global cues, the Indian benchmark indices on charts are indicating a further pullback rally in the near-term.
Nifty has formed a bullish candle on the weekly chart with a long tail suggesting strong support around 15,900 levels, while on the upside 16,800 may act as strong resistance.
The benchmark index has also taken support from the previous horizontal line and closed above 21-days Simple Moving Averages indicating a pullback rally in the near term.
Indicators such as RSI remained in the neutral zone while MACD suggest some positive cross over observed in daily time frame suggest some sign of reversal.
Coming to the OI Data, on the call side the highest OI witnessed was 16500 followed by 16800 strike prices while on the put side, the highest OI was at 16000 strike price.
Overall, Nifty is having support at 16,000-mark while on the upside 16,500 followed by 16,750 may act as an immediate resistance. While Bank nifty has support around 34,300 while resistance is placed at 36,800 on weekly chart.
Investors and traders may watch out key events such as the RBI meet in the second week as well as the US Fed meeting likely to be on June 14-15.
During the week, stocks snapped three days of losses as investors pick up beaten-down financial and metal stocks. Foreign capital continued to flee Indian equities due to concerns about surging price pressures and aggressive monetary policy tightening globally. India VIX fell 7 percent this week to 21.48.
Sector-wise, Banking, and Auto sectors were the top gaining sectors whereas Metal and Energy were the top losing sectors.
Key crucial data for the next week include the Indian Q4FY22 GDP growth rate, India’s fiscal deficit data, China’s Manufacturing PMI, and the US Unemployment rate.
Top gainers
There was no fundamental reason for the price surge of top gainers stocks.
Top losers
Divis Laboratories: Divis Lab’s share price fell post Q4FY22 results amid unsustainable growth
JSW Steel/ Tata Steel: Metal stocks price fell after export duty on steel puts pressure.
ONGC: ONGC share price slumps over the government’s consideration of windfall tax.
Asian Paints: Asian Paints share price slumps over Grasim’s announcement to boost its Capex into the paints business.
(Sumeet Bagadia is Executive Director, Choice Broking)
