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Technical View | Nifty forms bullish candle, 15,927 crucial for upside

India VIX, which indicates the degree of volatility traders expect over the next 30 days, rose 2.1 percent to 21.45. With monthly expiry on June 30, the market is expected to remain volatile

June 28, 2022 / 05:35 PM IST

Recovery in the last hour of trade helped the Nifty close in the green on June 28, supported by auto, metal and IT stocks even as private banking & financial services limited the upside.

The index, which ended 18.20 points higher at 15,850.20, formed a bullish candle on the daily charts. For further upside, it has to go past its recent high of 15,927, experts said.

"Unless it manages to get past 15,927 levels with a close above its 20-day simple moving average (15,946), a sustainable rally shall not be expected. In that scenario, the strength shall further get extended up to 16,172 levels," Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia said. The index slips to 15,400 if it fails to hold above 15,700.

Long-side bets should be avoided, whereas intraday shorting can be considered below 15,700 for a modest target of 15,600, he said advised.

Elevated volatility remained a cause of concern. India VIX, an indicator of volatility in the days to come, rose 2.1 percent to 21.45 levels. It has to cool below 20 for the market stabilise.

Close

The trend in broader space was mixed, as the Nifty midcap 100 index gained a third of a percent and smallcap 100 index lost a third of a percent.

On the options front, the maximum Call open interest was seen at 16,000 strike then 16,500 strike, while the maximum Put open interest was at 15,500 strike followed by 15,000 strike.

Call writing was seen at 16,300 strike followed by 16,200 strike, while Put writing was seen at 15,800 strike then 15,600 strike.

As per the options data, Nifty is expected to trade in the 15,500-16,200 range, a tad higher from 15,400-16,200 levels.

Banking index

The Bank Nifty opened around 200 points down at 33,578 but managed to hold its key support of 33,500. It negated the higher highs of the previous three sessions and closed the day 169 points down at 33,642. It formed a small-bodied bullish candle on the daily chart.

"It has to cross and hold above 33,750 levels to see an up move towards 34,000 and 34,250 levels, whereas supports are placed at 33,500 and 33,333 levels," Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.

On the stock front, a positive setup was seen in ONGC, Strides Pharma Science, Hindalco, Petronet LNG, M&M, TVS Motor, Ashok Leyland, Coal India, Granules India, MRF, Info Edge, IRCTC, Bank of Baroda, Bajaj Auto, M&M Financial, Indian Hotels, Dixon Technologies, SBI, Dr Reddy's Laboratories, Axis Bank and ITC.

Indian Energy Exchange, Titan, Bandhan Bank, Berger Paints, United Breweries, Indus Towers, Bajaj Finserv, Biocon and Kotak Mahindra Bank witnessed weakness, Taparia said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar
first published: Jun 28, 2022 05:35 pm
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