Trends suggest that bulls have taken over D-Street at least in the near term and as long as Nifty sustains above 10200 levels the bulls are likely to take the index towards 10350 levels.
The Nifty which started on a bullish note kept the momentum going as the index reclaimed its crucial resistance level of 10,200 on the first trading day of FY19. The index rose past its crucial 200-days moving average (DMA) placed at 10,182 in trade today.
Formation of a strong bull candle after a bearish candle suggests that bulls have taken over D-Street at least in the near term and as long as Nifty sustains above 10200 levels the bulls are likely to take the index towards 10350 levels.
Bulls appear to have started the new series (April series) on firm footing as they made a strong come back which erased the losses recorded in the last two trading sessions.
The Nifty index which opened at 10,151 slipped to an intraday low of 10127 in morning trade. The bulls pushed the index above 10200 levels to hit an intraday high of 10,220.10 before closing the trade at 10,211 up 98 points.
“Bulls appears to have started new series on firm footing as they made a strong come back with a robust bull candle. Technically speaking last 8 days of price action chalked out a small but clear inverted head and shoulder kind of formation on lower time frame charts which is suggesting a possibility of round 250 point rally for Nifty in near term provided the index sustains above 10200 marks,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“Besides, the index is moving in a descending channel since the highs of 10631 registered on 27th of February whose breakout point is placed around 10260 levels. Once Nifty registers a decisive breakout above the said channel then it shall strengthen the case for a durable bottom around 9950 levels,” he said.
Mohammad further added that if the strength continues traders should expect modest targets of around 10350 on the indices. “Traders are advised to ride the current leg of up move with a stop below 10100 on a closing basis and look for bigger targets,” he said.
India VIX fell down by 2.62% at 15.35. On the options front, maximum Put OI was placed at 10000 followed by 9800 strikes while maximum Call OI is at 11000 followed by 10500 strikes.
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 10,211.8 on Monday. According to Pivot charts, the key support level is placed at 10,153.03, followed by 10,094.27. If the index starts moving upwards, key resistance levels to watch out are 10,245.33 and 10,278.87.
Nifty Bank
The Nifty Bank index closed at 24,328.5 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,136.46, followed by 23,944.43. On the upside, key resistance levels are placed at 24,446.96, followed by 24,565.43.
Call Options data
In terms of open interest, the 10,500 call option has seen the most call writing so far at 32.95 lakh contracts. This could act as a crucial resistance level for the index in the April series.
The second-highest buildup has taken place in the 10,300 Call option, which has seen 23.92 lakh contracts getting written so far. The 10,700 Call option has accumulated 20.88 lakh contracts.
Call writing was seen at the strike price of 10,300, which added 4.86 lakh contracts, followed by 10,600, which added 3.98 lakh contracts, and 10,200, which added 3.93 lakh contracts.
Call unwinding seen was seen at the strike price of 10,700, which shed 2.95 lakh contracts, followed by 10,100, which shed 2.72 lakh contracts and 10,000, which shed 77,000 contracts.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,000, in which 41.98 lakh contracts been added till date. This could be a crucial resistance level for the index in April series.
The 9,800 put option comes next, having added 26.76 lakh contracts so far, and the 10,100 put option, which has now accumulated 22.96 lakh contracts.
During the session, put writing was seen the most at a strike price of 10,000, with 9.96 lakh contracts being added, followed by 10,100, which added 7.63 lakh contracts and 10,200 with 6.08 lakh contracts.
Put unwinding was seen at a strike price of 10,700, in which 1.03 lakh contracts were shed.
FII & DII data:
Foreign institutional investors (FIIs) sold shares worth Rs 689.75 crore, while domestic institutional investors bought shares worth Rs 413.16 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.
164 stocks saw long buildup
25 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
21 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates build-up of short positions.
1 stock saw long unwinding
Bulk Deals:
Infibeam Incorporation Limited: Affluence Gems Private Limited sold 30,00,000 shares at Rs 152 per share while Smaller Cap World Fund INC bought 189,85,289 shares at Rs 152 per share
Nitco Limited: Kuber India Fund bought 4,80,000 shares at Rs 95 per share
Sumeet Industries Limited: RT Super Technologies Private Limited sold 8,72,500 shares at Rs 14.17 per share
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
GIC Re: Westbridge Capital met the management on April 2, 2018.
Visaka Industries: Edelweiss Broking will be meeting the firm’s representatives on April 5, 2018.
Mahanagar Gas: Axis Capital and Vontobel AMC will be interacting with the management on April 3, 2018.
ACC: The company is meeting fund houses and investors in Singapore on April 3 and 4, 2018.
Shoppers Stop: Sharekhan will meet the management of the company on April 4, 2018.
Stocks in news:
Ashok Leyland: CARE Ratings upgraded the ratings of its short and long-term bank facilities. Meanwhile, the rating of its commercial paper has been reaffirmed.
Fortis Healthcare: Minority shareholders of the firm are said to have opposed the deal with Manipal.
NTPC: The company has said to have achieved 53,000 MW of commissioned capacity, according to a Hindu Business Line report.
No 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.
But for April 3, 2018 there are no stocks present in this list.