The index is now trading above its crucial short-term moving averages which is a positive sign for the bulls. But, Supertrend and MACD are both in SELL mode. If the bounce back sustains, we could see these indicators turning to a buy.
The Nifty, which started with a gap-up, built up momentum in the second half of the trading session on Monday to reclaim its crucial 100-days exponential moving average (DEMA) placed around 10,410. It made a strong bullish candle or Long White Day on the daily charts.
Most experts were already signaling a bounce back in Indian markets in their commentary and it happened on the first trading day of the week. This was after the market witnessed a decline of over 2 percent last week.
The index is now trading above its crucial short-term moving averages, which is a positive sign for the bulls. However, Supertrend and MACD are both in 'sell' mode. If the bounce back sustains, we could see these indicators turning into a 'buy'.
The Nifty, which opened at 10,301, rose to an intraday high of 10,433. It slipped marginally to hit an intraday low of 10,295 but managed to close 194 points higher at 10,421.
As long as the Nifty is trading above its 100-DEMA, bulls have nothing to fear. Traders can remain long on the index with a stop below 10,295.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty:
The Nifty closed at 10,421.4 on Monday. According to Pivot charts, the key support level is placed at 10,333.37, followed by 10,245.33. If the index starts to move higher, key resistance levels to watch out are 10,471.57 and 10,521.73.
Nifty Bank:
The Nifty Bank closed at 24,664.2 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,443.1, followed by 24,222.0. On the upside, key resistance levels are placed at 24,800.7, followed by 24,937.2.
Call Options data:
In open interest, 10,600 has seen most call writing at 51.82 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 10,500, which has seen 49.68 lakh contracts, and 10,400 strike price, which has accumulated 39.45 lakh contracts.
Call writing was seen at the strike price of 10,600, which saw an addition of 15.08 lakh contracts, followed by 10,400, which added 1.40 lakh contracts.
Call unwinding was seen at the strike price 10,300, which shed 10.32 lakh contracts, followed by strike price of 10,200, which shed 8.24 lakh contracts, and 10,500, which shed 5.19 lakh contracts.
Put Options data:
Maximum put open interest of 54.05 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 45.77 lakh contracts, and 10,300, which has now accumulated 43.74 lakh contracts.
Put writing was seen at the strike price of 10,300, which saw addition of 19.1 lakh contracts, along with 10,400, which added 14.37 lakh contracts, and 10,200, which added 5.6 lakh contracts.
Put unwinding was seen at the strike price of 10,900, which shed 1.33 lakh contracts.
FII & DII data:
Foreign institutional investors (FIIs) bought shares worth Rs 374.65 crore, while domestic institutional investors sold shares worth Rs 464.59 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 delivery of the stock, which means that investors are bullish on it.
135 stocks saw long build-up:
46 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
25 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates build-up of short positions.
4 stocks saw long unwinding:
Long unwinding happens when there is a decrease in OI as well as in price.
Bulk Deals:
Castex Technologies Ltd: Standard Chartered Bank sold 20,00,000 shares at Rs 4.56 per share
Kalyani Steels Limited: Gloxinia Investment and Finance Private Limited sold 2,35,000 shares at Rs 287.57 per share
Shankara Building Product Ltd: Amansa Holdings Private Limited bought 2,15,000 shares at Rs 1755 per share
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Balkrishna Industries: Axis Capital is meeting the management of the company on March 15, 2018.
AIA Engineering: The company will be meeting institutional investors in US and UK between March 13 and March 19.
Stocks in news:
Reliance Communications : NCLT extends stay on company's arm asset sale till further orders
InterGlobe Aviation: Directorate General of Civil Aviation (DGCA) has asked IndiGo and GoAir to ground 8 and 11 A320 neo planes, respectively
Ashoka Buildcon: The Board will consider an interim dividend on March 20, 2018.
Union Bank: High Court orders winding up of Nimbus Communications for defaulting on bank’s dues.
JSW Steel: Fundraising of USD 1 billion through overseas bonds to buy distressed assets, reports Mint.
ACC Seeks Shareholders' Nod For Entering Into Master Supply Agmt W/Ambuja Cements
TCS: Tata Sons To Sell Up To 1.48% Stake In TCS Via Block Trades To Raise $1.2 Bn at Rs 2,872-,925 apiece.
Six stocks under ban period on NSE
Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95% of the market-wide position limit. Securities which are banned for trading include names such as Andhra Bank, Balrampur Chini, BEML, DHFL, IDBI Bank, and JP Associates.