Experts feel that the index could form short-term button soon as it emerges near its 200-days exponential moving average (DEMA) placed around 10,128.
The Nifty, which started on a muted note, failed to recoup losses and extended its decline, falling to below-10,200 levels and making a strong bearish candle on the daily charts on Wednesday.
The index closed near its intraday low, which is not a good sign for the bulls, but experts feel that the index could form a short-term button soon as it emerges near its 200-days exponential moving average (DEMA) placed around 10,128.
The Nifty formed a bearish candle for the sixth consecutive day in a row and analysts feel that it will be hard for the index to breach the 200-DEMA in a hurry.
The index, which opened at 10,232, rose marginally to hit an intraday high of 10,243. But, bears took control of the index and pulled the index lower towards 10,150 to hit its intraday low of 10,141. It closed 95 points lower at 10,154.
“The Nifty extended its downswing as it registered one more bearish candle for 6th session in a row. In this process, it also almost tested its 200 Day Simple Moving Average. As directional move emerged in Tuesday’s trading session with the breakdown of trading range below 10,300 levels this correction should ideally get extended towards 10,000 kind of levels to meet pattern targets,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“However, in between around 10,100 levels confluence of supports are emerging accompanied with oversold levels for the market. Hence, somewhere between 10,100 – 10,000 levels market should post short-term bottom in next couple of trading sessions,” he said.
Mohammad further said that the real strength in the index on upsides will emerge only on a close above 10,450 levels but there is good technical reasons for markets to post a short-term bottom in the zone of 10,100 – 9,983 levels.
India VIX fell down by 3.26 percent to 15.71 and a decline in volatility, even after new lows in the index, suggests that 200 DEMA and psychological 10,000 zones could arrest the immediate fall in the market.
We have collated the top 15 data points to help you spot profitable trade:
Key support and resistance level for Nifty:
The Nifty closed at 10,154.2. According to Pivot charts, the key support level is placed at 10,116.03, followed by 10,077.87. If the index starts to move higher, key resistance levels to watch out are 10,217.83 and 10,281.47.
Nifty Bank:
The Nifty Bank closed at 24,134.1. Important Pivot level, which will act as crucial support for the index, is placed at 24,029.47, followed by 23,924.84. On the upside, key resistance levels are placed at 24,306.07, followed by 24,478.04.
Call Options Data:
In open interest, 10,600 has seen most call writing at 51.37 lakh contracts. This could act as a crucial resistance level for the index in the March series. The second-highest build-up has taken place at strike price 10,500, which has seen 49.37 lakh contracts and 10,400 strike price has accumulated 38.38 lakh contracts in open interest.
Call writing was seen at a strike price of 10,200, which saw the addition of 15.24 lakh contracts, followed by 10,600, which added 12.94 lakh contracts and 10,300, which added 5.34 lakh contracts.
Call unwinding was seen at the strike price 10,700, which shed 7.75 lakh contracts.
Put Options Data:
Maximum put open interest of 40.83 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in March series; followed by 10,200, which now holds 33.12 lakh contracts and 10,400 which has now accumulated 26.92 lakh contracts in open interest.
Put Writing was seen at the strike price of 10,100, which saw addition of 3.82 lakh contracts, along with 10,000, which added 3.70 lakh contracts and 10,200, which added 3.23 lakh contracts.
Put unwinding was seen at the strike price of 10,400, which shed 7.5 lakh contracts, followed by 10,300, which shed 4.1 lakh contracts and 10,500, which shed 3.81 lakh contracts.
FII & DII Data:
Foreign Institutional Investors (FIIs) sold shares worth Rs 719.78 crore, while domestic institutional investors bought shares worth Rs 409.34 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 it.
12 stocks saw long build-up:
32 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
75 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.
37 stocks saw long unwinding:
Long unwinding happens when there is a decrease in OI as well as in price.
Bulk Deals:
Teamlease Services Ltd.: HDFC Trustee Co. Ltd. - HDFC Prudence Fund sold 6,00,168 shares at Rs 2150.02 per share
GSS Infotech Limited: Bipin Chinubhai Shah sold 3,00,000 shares at Rs 56.25 per share
CKP Leisure Limited : Brisk Capital Market Services Limited bought 4,76,000 shares at Rs 29.61 per share
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Yes Bank: Multiple investors, including big names such as Aditya Birla Sun Life AMC, Franklin Templeton, DSP Blackrock, among others, met the management on March 6, 2018.
Voltas: SBI CAP, Investec, Enam, Dalal & Broacha, ASK Investment Managers, Stewart Investors, Taiyo Pacific Partners will meet the management on March 8 and March 21, 2018.
Stocks in news:
Strides Shasun to launch Ranitidine 75mg OTC Tablets. The drug is used to treat peptic ulcers of stomach and intestine.
Sun Pharma's Paonta Sahib unit gets good manufacturing certificate from Dutch regulatorJSW Steel says it has not signed any MoU W.r.t. acquisition Of Italy's Aferpi
SBI Worried About Its Loan To Given To Adani, Tata Power Projs, power minister said.
CCI Penalises 3 Airlines, Jet Airways, IndiGo and SpiceJet for concerted action in fixing fuel surcharge on cargo transport.
4 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 DHFL, HDIL, IDBI and Oriental Bank of Commerce.
