In this article, you will get all information regarding 18,200 seen as resistance for Nifty 50 after two-day surge

The last two days of the F&O 2022 series have become crucial for the Nifty 50 Index to determine the direction of the market. Whether last week’s selloff was a one-off or whether the downtrend continues in the medium term is a question on the street.

In fact, the Nifty 50 closed above the 18,100 mark on Tuesday, extending its gains for the second day. More importantly, it ended near the high point of the day, led by a rally in the second half of the session. Metals stocks outperformed on Tuesday on hopes of a reopening of the Chinese economy, triggering a short-term hedging rally.

CNBC-TV18 Wednesday’s trading floor chatter also highlighted the fact that 18,200 is seen as near-term resistance for the Nifty 50.

What do the graphs suggest for Dalal Street?

Jai Bala of suggests that any rally below the 18,345 levels, which is a resistance level for the Nifty 50, would be very bearish. He cited the monthly charts’ rejection from record highs as a sign of weakness. The short-term support for the index, according to Bala, stands at 17,500.

The Nifty Bank Index managed to hold the immediate support zone at 42,400 but faces an upside hurdle at 43,000, according to Kunal Shah of LKP Securities. 43,000 is where there is the largest addition of open interest seen from the call side. He expects the index to continue trading in a wide range of 42,000 to 43,000.

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

On Wednesday, Singapore Stock Exchange (SGX) Nifty futures – a leading indicator of the Nifty index – fell 68 points or 0.37% to 18,080, indicating a negative open for the market. As the year draws to a close, volumes are expected to remain lower.

The shortened holiday week on Wall Street began Tuesday on a mixed note. The Dow Jones managed to gain 40 points while the Nasdaq lost 1.4%, thanks to a double-digit drop in Tesla. The electric vehicle maker ended down 11%, fell for the seventh day in a row and is heading for its worst month, quarter and year on record. Futures contracts are currently stable.

What to expect in Dalal Street

In a market like this, Gautam Shah intends to be sector and stock specific. It currently focuses on the top 100 companies and not the broader markets, where mid and small cap stocks have fallen 20-40%.

“Large caps are where the liquidity is, where you can get in and out very quickly. If you’re playing with a 1-3 month horizon, I would always go for large caps,” he said.

On the Nifty Bank front, LKP’s Kunal Shah said if the index manages to break above 43,000, it could lead to a sharp move from short cover to 44,000 levels.

Siddhartha Khemka of Motilal Oswal Financial Services expects market momentum to remain positive in the near term given the absence of major global indices due to the year-end holidays and stable economic outlook for India .

For tomorrow’s weekly and monthly options expiry, the Nifty 50 Index’s 18,000 strike call added another 30.5 lakh shares in Open Interest. The only other significant addition was seen in the 18,100 call, which added just over 3 lakh in shares.

On the downside, the 18,000 put added over 34 lakh shares in open interest, followed by the 18,100 put (22.49 lakh shares) and the 17,900 put (12.9 lakh shares).

Indiabulls Housing Finance is back in the F&O Ban with Balrampur Chini. The National Bank of Punjab remains in the ban period.

FII/DII activity

Short cover (increase in price and decrease in open interest)

Shares Current IO CPM Price change Change of IO
Intellectual design arena 19,23,000 441.85 1.10% -19.35%
Infra GMR 9,11,47,500 39.20 1.16% -18.33%
Dr. Reddy’s Laboratories 12,57,750 4,256.15 0.09% -17.85%
Indian oil company 4,00,23,750 75.10 0.87% -17.59%
city ​​union bank 48,80,000 177.85 1.17% -16.72%

Long rollout (decrease in price and open interest)

Shares Current IO CPM Price change Change of IO
Jubilant Foodworks 78,82,500 519.60 -0.25% -25.79%
HDFC 80,73,900 2,667.80 -0.01% -25.69%
Sun Pharma 98,09,100 999.60 -0.03% -25.62%
MCX 8,40,800 1,561.55 -0.92% -23.26%
cipla 52,88,400 1,096.80 -0.13% -21.26%

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18,200 seen as resistance for Nifty 50 after two-day surge

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