Bias has now tilted in favour of bears and a break below 200-day moving average in the coming week could extend selling pressure.
Bears took control of D-Street from the word go as a Nifty break below crucial support levels one after the other on Friday and made a strong bearish candle which closely resembles Bearish Belt Hold kind of pattern on the daily charts.
The bias has now tilted in favour of the bears and a break below 200-day moving average in the coming week could extend the selling pressure.
The Nifty took support near its 200-DMA on last two occasions (7th and 8th March) and then bounced back. Now, a break below this level which is placed around 10,160 could push the index towards its next crucial support level placed at 10,000.
The index reversed gains after hitting an intraday high of 10,478.60 levels when Nifty made a ‘Shooting Star’ kind of pattern on the daily candlestick charts.
“The Nifty50 appears to have resumed its downtrend as it registered a robust bear candle with a cut of around 160 points which is threatening the recent lows of 10,140 levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“If a fresh leg of the downtrend is in progress from the highs of 10,478 levels then ideally it should breach the recent lows of 10,140 and then initially head towards its 200-Day Exponential Moving Averages whose value is placed around 10,114 kinds of levels,” he said.
Mohammad further added that in between multiple support points are available in the zone of 10,160 – 10,140 levels which may provide some temporary relief to bulls from the current carnage.
“For time being upsides shall get capped around 10,350 kind of levels and rally towards 10,300 can be sold into for initial targets placed in the zone of 10,040-9,980 kind of levels,” he said.
India VIX moved up by 6.21 percent at 15.22. Rise in volatility after the recent consolidation seen in the last five sessions has given an upper hand to bears which suggest more weakness. A fall in Put Call Ratio also points to the same direction.
We have collated the top 16 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,134.83 on Friday. According to Pivot charts, the key support level is placed at 10,074.47, followed by 10,134.83. If the index starts moving upwards, key resistance levels to watch out are 10,300.93 and 10,406.67.
Nifty Bank
The Nifty Bank index closed at 24,489.6 on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 24,357.43, followed by 24,225.27. On the upside, key resistance levels are placed at 24,703.54, followed by 24,917.47.
Call Options data
In terms of open interest, the 10,500 call option has seen the most call writing so far at 58.31 lakh contracts. This could act as a crucial resistance level for the index in the March series.
The second-highest buildup has taken place in the 10,400 Call option, which has seen 48.81 lakh contracts getting written so far. The 10,700 Call option has accumulated 42.28 lakh contracts.
During the session, Call writing was most seen at the strike price of 10,300, which saw an addition of 15.47 lakh contracts, followed by 10,200, in which 14.98 lakh contracts were added, and 10,500, in which 7.40 lakh contracts were added.
There was hardly any Call unwinding seen.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,000, in which 46.36 lakh contracts have been added till date. This will act as a crucial base for the index in the March series.
The 10,200 put option comes next, having added 39.77 lakh contracts so far, and the 10,100 put option, which has now accumulated 33.47 lakh contracts.
During the session, put writing was seen the most at a strike price of 10,200, with 2.43 lakh contracts being added, followed by 9,900, which added 1.24 lakh contracts.
Put unwinding was seen at a strike price of 10,400, in which 15.01 lakh contracts were shed, followed by 10,300, in which 8.3 lakh contracts were shed. The 10,500 put option saw 2.35 lakh contracts getting shed.
FII & DII data:
Foreign institutional investors (FIIs) sold shares worth Rs 150.46 crore, while domestic institutional investors sold shares worth Rs 770.53 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.
16 stocks saw long build-up:
17 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 build-up of short positions.
73 stocks saw long unwinding:
Long unwinding happens when there is a decrease in OI as well as in price.
Bulk Deals:
Capital First: Vanguard Group has purchased over 9 lakh shares at Rs 648.65 apiece.
Eris Lifesciences: Vanguard Group has purchased over 10 lakh shares at Rs 814.88 apiece.
Gateway Distriparks: Morgan Stanley has purchased over 10 lakh shares in the firm at Rs 201.
Graphite India: Vanguard Group has purchased over 13.5 lakh shares in the company at Rs 776.06.
Jaiprakash Associates: Adroit Financial Services has traded over 2 crore shares in four transactions at around Rs 21.
TeamLease: HDFC Mutual Fund Prudence sold 3.8 lakh shares at Rs 2,050
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
HDFC Life: The company participated in the investor conference organised by Haitong Securities in Mumbai.
ACC: The company met mutual fund house such as Sundaram Mutual Fund, IDFC Mutual Fund and GIC Re on March 16.
Ambuja Cement: The company met Goldman Sachs AMC on March 16, 2018.
Astral: First Voyager Advisors met the management on March 16, 2018.
Stocks in news:
Axis Bank: Reviewed and retained MCLR rates across all tenors. The one-year MCLR has been set at 8.4 percent.
Ramky Infra: The company has bagged an EPC order of Rs 939.4 crore From NHAI In Srinagar.
YES Bank: The company has said that Life Insurance Corporation has raised stake in firm By 2.03% To 9.62%.
Speciality Restaurants: Anjan Chatterjee to hand over operations to son, reports Mint.
Eight 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 percent of the market-wide position limit.
Securities which are banned for trading include names such as Bank of India, BEML, DHFL, HDIL, IDBI Bank, JP Associates, SAIL and TV18 Broadcast.