Market near days high, aided by IT heavyweights; Max Pain is at 15,800 level

Market near days high, aided by IT heavyweights; Max Pain is at 15,800 level

Both the big boys of the IT sector have combinedly contributed as much as 65 points to Nifty’s kitty.

Market Update at 12:50 PM: Indian markets were seen trading near their day's high in the afternoon session, aided by the IT bellwethers - Infosys and TCS. Both the big boys of the IT sector have combinedly contributed as much as 65 points to Nifty’s kitty. Meanwhile, the index heavyweight, Reliance Industries witnessed profit booking ahead of the AGM, which is scheduled around 2 pm.   

On the options' front, 15,700 Put option has seen open interest addition of more than 50 lakh shares since morning while the Max Pain is at 15,800 level.  

 

 

Market Update at 10:19 AM: Indian markets were seen trading in green during the early deals on Thursday. Meanwhile, a mixed trend was seen in the broader markets with Nifty Smallcap gaining 0.21 per cent whereas Nifty Midcap 100 tumbling 0.23 per cent.   

Shyam Metalics & Energy made a handsome debut on NSE, as the stock got listed at Rs 380 against the issue price of Rs 306. The stock made a high of Rs 399 while currently, it is seen trading near the lows of the day.   

 

After the initial rally, Nifty largely remained volatile with a negative bias and ended below the 15,700 mark with a loss of 0.54 per cent.  

Nifty formed a bearish candle on the daily chart as its closing was lower than the opening level. The candle resembled a bearish belt hold pattern as there was no upper shadow and the price closed near the lows of the trading session. The broader markets too ended in the red; however, they relatively outperformed the frontline indices.   

On the sectoral front, barring Nifty Auto, which gained 0.46 per cent, all other indices ended in red with Nifty Metal being the top loser.   

Technically, the index has formed two consecutive bearish candles from the high of 15,895.75, which is hinting at a potential double top formation around the all-time high levels. Hence, in the near term, the zone of 15,450-15,520 would be watched closely. In case, Nifty slides below this zone, then it would result in a breakdown of the neckline of the double top pattern, which could be a negative sign for the index.   

Currently, the index is hovering around its 20-DMA. Interestingly, the index has not managed to close below the 20-DMA since May 5, though it has slipped below its 20-DMA on an intraday basis, but not closed below that. Hence, 20-DMA is a crucial support to watch out for on Thursday. Meanwhile, on the 75-minutes chart, Nifty closed below the moving average ribbon along with the MACD line below the zero lines, which is a bearish setup. Thursday, being June series derivative expiry, the direction could get influenced by the expiry-related factors. Hence, traders are requested to follow proper risk management.   

Furthermore, India VIX once again moved above 15 as it surged 4.26 per cent. A move above 18 would indicate a higher intraday swing. As the expiry is in place, it’s better to avoid aggressive positions. Furthermore, the index heavyweight - Reliance Industries' AGM is scheduled to be held on Thursday. Besides, in the past five years, the index has seen high movements, triggered by the AGM announcements.  

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