The Nifty closed at 10,801.90 on Tuesday. According to Pivot charts, key support level is placed at 10,745.74, followed by 10,689.67. If the index starts moving upwards, key resistance levels to watch out are 10,893.54 and 10,985.27.
The Nifty gave up all gains and closed marginally in the red May 15 as uncertainty around government formation in Karnataka made investors wary. The index formed an ‘Inverted Hammer’ or a Shooting Star kind of formation on the daily charts.
A 'Shooting Star' pattern is formed when the index comes under selling pressure as traders start booking profits at higher levels. This pattern is usually formed in an uptrend and is treated as a reversal pattern, but it would require confirmation before we can conclude that the trend will get reversed in near future.
“Though the BJP dramatically improved its performance from the last elections, reports that the Congress was ready to provide support to the JDS, the indices slipped,” VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities.
In exact 'Shooting Star' formation, the distance between the lowest price for the day and the closing price must be very small or nonexistent. However, in Tuesday's session, Nifty50 opened at 10,812.60 and slipped to an intraday low of 10,781.40. It closed 4.75 points lower at 10,801.85.
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If index forms a bearish candle in Wednesday’s trade there is a higher probability that the trend could reverse from current levels. But, even for the trend to reverse, Nifty50 must close below 10,600 levels.
“In line with our expectations political turn out of events had their own impact on the bourses owing to which Nifty50 registered an inverted hammer kind of formation with a long upper shadow suggesting profit booking exactly at its logical resistance point of 10,928 levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“Tuesday’s high has the potentiality to become a short-term top if it is not cleared in the next couple of trading sessions. The Nifty50 shall remain under pressure in the next session if it breaches 10,781 levels which shall then initially drag it down towards 10,713 and eventually below 10,601 kind of levels to culminate the corrective pattern,” he said.
Mohammad further added that as the advance-decline ratio is consistently remaining negative including on rally day’s traders are advised to wait for a proper correction before initiating fresh long positions. For time being, it seems, they will be better off by taking a neutral stance.
We have collated top 15 data points to help you spot profitable trade:-
Key support and resistance level for Nifty
The Nifty closed at 10,801.90 on Tuesday. According to Pivot charts, key support level is placed at 10,745.74, followed by 10,689.67. If the index starts moving upwards, key resistance levels to watch out are 10,893.54 and 10,985.27.
Nifty Bank
The Nifty Bank index closed at 26,474 on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,263.5, followed by 26,053. On the upside, key resistance levels are placed at 26,828.3, followed by 27,182.6.
Call Options data
In terms of open interest (OI), the 11,000 Call option has seen the most call writing so far at 63.73 lakh contracts. This could act as a crucial resistance level for the index in the May series.
The second-highest buildup has taken place in the 10,800 Call option, which has seen 36.35 lakh contracts getting added so far; followed by 10,900 Call option which has accumulated 34.01 lakh contracts.
Call writing was seen at the strike price of 11,200, which added 3.04 lakh contracts; followed by 11,000 which added 2.27 lakh contracts.
Call unwinding was seen at the strike price of 10,700, which shed 3.29 lakh contracts; followed by 10,900, which shed 1.5 lakh contracts, and 10,600, which shed 1.27 lakh contracts.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,500, in which 60.63 lakh contracts been added till date. This could be a crucial support level for the index in May series.
The 10,700 put option comes next, having added 47.04 lakh contracts so far, followed by 10,600 put option which has now added 40.40 lakh contracts in OI.
Put writing was seen at the strike price of 10,800, which added 8.7 lakh contracts; followed by 10,900, which added 5.34 lakh contracts.
Put unwinding was seen at the strike price of 10,400, which shed 7.6 lakh contracts; followed by 10,600, which shed 7.05 lakh contracts and 10,300 strike which shed 6.9 lakh contracts.
FII & DII data:
Foreign institutional investors (FIIs) sold shares worth Rs 518.47 crore, while domestic institutional investors bought shares worth Rs 531.33 crore in the Indian equity market on Tuesday, 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.
22 stocks saw long buildup
48 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
71 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates build-up of short positions.
65 stocks saw long unwinding
Bulk Deals:
BEML: QE Securities traded over 2 lakh shares at Rs 1,067 apiece.
Dr Lal PathLabs: Sanjeevni Investment Holding sold over 4 lakh shares at the price of Rs 887.7.
PC Jeweller: Shaastra Securities traded 37 lakh shares at Rs 169.
Reliance Communications: Shaastra Securities traded 1.53 crore shares at Rs 12.4.
Ruchi Soya: Padmavati Investment sold 24.32 lakh shares at Rs 10.4 apiece.
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Colgate Palmolive: An analysts' meet is scheduled on May 21, 2018 to discuss its financial results.
RBL Bank: The lender had an analyst call with Falcon Edge Capital.
IndusInd Bank: The bank's representatives met multiple investors in Singapore.
MOIL: Board to consider FY18 results & dividend on May 24
Mandhana Retail Ventures: Board to consider Q4 & FY18 results on May 28
Majestic Research Services: Board to consider Q4 & FY18 results on May 26
Ratnamani Metals & Tubes: Board to consider FY18 results & dividend on May 22
Future Retail: Board to consider Q4 & FY18 results & dividend on May 21
Torrent Pharmaceuticals: Board to consider Q4 & FY18 results & dividend on May 30
GE Power India: Board to consider Q4 & FY18 results & dividend on May 22
General Insurance Corporation of India: Board to consider Q4 & FY18 results, dividend and bonus issue on May 25
HG Infra Engineering: Board to consider Q4 & FY18 results on May 23
Stocks in focus
Punjab National Bank: Q4 fresh slippages jump to Rs 29,468 crore versus Rs 2,755 crore QoQ and gross slippages rise to Rs 30,991 crore from Rs 3174 crore QoQ.
Union Bank of India: Board of directors on May 18 will approve the Capital Plan 2018-19 and approve raising equity capital through public issue (i.e. follow-on-public issue) and/or rights issue and/or private placement, including qualified institutional placements and/or preferential allotment to Government of India or other Institutions.
Punjab & Sind Bank reviews the marginal cost of fund based lending rate (MCLR) for different tenors, effective from May 16.
Syngene International: Biocon to dilute up to 2 percent stake in company during May 16-August 10, to meet minimum public shareholding norms.
Wockhardt: CARE Ratings revises rating for long term banking facilities to A/Negative from A+/Stable.
Multi Commodity Exchange of India: Commenced options trading in crude oil contract.
Clariant Chemicals Q4: Profit at Rs 3.6 crore versus Rs 11.8 crore; revenue from operations at Rs 244 crore versus Rs 254 crore (YoY).
Crompton Greaves Consumer Electricals Q4: Profit rises to Rs 103.22 crore versus Rs 77.94 crore; revenue from operations at Rs 1,126.31 crore versus Rs 1,046.3 crore (YoY).
Shakti Pumps Q4: Profit at Rs 9.58 crore versus Rs 11.86 crore; revenue from operations at Rs 130 crore versus Rs 166.5 crore (YoY).
Jindal Poly Films Q4: Consolidated loss at Rs 57.43 crore versus profit of Rs 3.66 crore; revenue from operations falls to Rs 791.07 crore versus Rs 1,873.28 crore (YoY).
Monsanto India Q4: Profit at Rs 53.14 crore versus Rs 31.93 crore; revenue from operations up at Rs 156.85 crore versus Rs 143.32 crore (YoY).
Syndicate Bank Q4: Loss at Rs 2,195.12 crore versus Rs 103.84 crore; NII falls to Rs 1,678.77 crore versus Rs 1,861.01 crore (YoY); gross NPA at 11.53 percent versus 9.62 percent and net NPA at 6.28 percent versus 5.44 percent (QoQ); provisions for bad loans at Rs 3,544.68 crore versus Rs 1,948.80 crore (QoQ) and Rs 1,192.54 crore (YoY).
Britannia Industries Q4: Profit up at Rs 263.2 crore versus Rs 210.91 crore; revenue from operations rises to Rs 2,537.52 crore versus Rs 2,316.12 crore (YoY); announces dividend at Rs 25 per share.
Tata Steel to acquire Bhushan Steel through its step-down subsidiary Bamnipal Steel
ArcelorMittal parks Rs 7,000 crore with SBI to clear Uttam dues
ICICI Bank acquires nearly 18% stake in Gammon Infrastructure
Cyient signs definitive agreement to acquire the remaining 49% stake in its subsidiary, Cyient Insights
Sistema Shyam lowers stake in RCom to 4.43%
6 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.
For May 16, 2018 stocks such as DHFL, Jet Airways, Jaiprakash Associates, Just Dial, PC Jeweller and Wockhardt are present in this list.