The index formed a bearish candle after three successive bullish candles, giving an indication that the momentum could hit a pause.
The bulls failed to continue the winning run for the fourth consecutive day in a row as Nifty formed a bearish candle after three bullish candles. The index closed below its crucial 50-DMA and 50-DEMA placed at 10,623 and 10,559 levels respectively on Tuesday.
The index formed a bearish candle after three successive bullish candles, giving an indication that the momentum could hit a pause. However, analysts are still not advising traders to take active short positions.
A false breakout was seen on Monday when Nifty closed above its 50-days exponential moving average (DEMA) could also hit sentiment. The index corrected after touching its 50-DMA placed around 10,623 levels.
The Nifty which opened at 10,615 failed to hold on to the momentum and slipped to its intraday low of 10,537. It closed 28 points lower at 10,554.
“Albeit Nifty was sold off as it opened into the resistance point of 10630 levels before signing off the day with a bearish candle, interestingly this price action has not resulted in any significant negative pattern formation,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
“Though the position of the bearish candle is appearing to be a dark cloud cover kind of formation technically it should have closed below the midpoint of Monday’s candle body to become more bearish. Besides, Nifty is still trading above Monday’s gap zone 10520 – 10499 levels and yet to decisively breach its 50-days exponential moving average on the downside,” he said.
Mohammad further added that Tuesday’s price action just shied away from creating technical breakdowns on lower time frame charts and hence market participants need to wait for one more negative trading session and some sort of technical breakdown before becoming bearish on markets.
However, a firm close above 10630 levels on the Nifty shall resume the upmove which started a couple of days back from the lows of 10340 levels.
India VIX moved up by 1.66% at 13.92. On the options front, maximum Put open interest is placed at 10400 followed by 10000 strikes while maximum Call open interest is placed at 10700 followed by 11000 strikes.
We have collated the top fifteen data points to help you spot profitable trade:
Key Support & Resistance Level for Nifty:
The Nifty closed at 10,554.3. According to Pivot charts, the key support level is placed at 10,517.1, followed by 10,479.9. If the index starts to move higher, key resistance levels to watch out are 10,611.6 and 10,668.9.
Nifty Bank:
The Nifty Bank closed at 25,383.6. Important Pivot level, which will act as crucial support for the index, is placed at 25,252.13, followed by 25,120.67. On the upside, key resistance levels are placed at 25,619.33, followed by 25,855.07.
Call Options Data:
Maximum call open interest (OI) of 32.57 lakh contracts stands at strike price 10,700, which will act as a crucial resistance level for the index in the March series, followed by 11,000, which now holds 32.56 lakh contracts in open interest, and 10,600, which has accumulated 30.25 lakh contracts in OI.
Call writing was seen at a strike price of 10,600, which saw the addition of 6.11 lakh contracts, followed by 10,700, which added 5.83 lakh contracts and 10,800, which added 3.12 lakh contracts.
Call unwinding was seen at the strike price 10,400, which shed 1.25 lakh contracts.
Put Options Data:
Maximum put OI of 36.07 lakh contracts was seen at strike price 10,400, which will act as a crucial base for the index in March series; followed by 10,000, which now holds 34.69 lakh contracts and 10,300 which has now accumulated 31.38 lakh contracts in open interest.
Put Writing was seen at the strike price of 10,400, which saw addition of 4.15 lakh contracts, along with 10,600, which added 2.75 lakh contracts and 10,300, which added 2.41 lakh contracts.
There was hardly any Put unwinding seen.
FII & DII Data:
Foreign institutional investors (FIIs) sold shares worth Rs 906.86 crore, while domestic institutional investors bought shares worth Rs 1,046.67 crore in the Indian equity market, as per provisional data available on the NSE.
Fund Flow Picture:
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on the stock.
39 stocks saw long build-up:
26 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
104 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.
41 stocks saw long unwinding:
Long unwinding happens when there is a decrease in OI as well as in price.
Bulk Deals:
Punjab National Bank: Shastra Securities traded 1.45 crore shares at Rs 100 apiece.
Narayana Hridayalaya: First State Investments bought 11.14 lakh shares at Rs 300.
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Biocon: Alliance Bernstein, Citi Research, Franklin Templeton, Temasek Holdings, Progress Asia, Daiwa AMC and Quantum AMC met the firm’s management on February 26, 2018.
Tata Steel: HPS Investment Partners has a phone interaction with the management of the firm on February 28, 2018.
Stocks in news:
Bharti Airtel: Company announces partnership with Google for low-cost smartphones powered by Android Go.
TCS: The company has bags order from Oman's Bank Muscat
Bharat Forge : Completed sale of balance equity of 26% in power equipment JV With GE, Alstom Bharat Forge Power
HDFC: QIP opens, sets floor price at Rs 1,824.63
Gets shareholders' nod to issue up to 145 crore shares to government On pref basis aggregating up to Rs 2,634 crore.
3 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
Securities which are banned for trading include names such as Fortis, JP Associates and Oriental Bank of Commerce.
