The index is now trading above most of its short term and medium term moving averages which is a bullish sign. A large part of the rally was led by short coverings, suggest experts.
The Nifty managed to reclaim 10,650 levels, rallying for the third consecutive day in a row on Monday. The index formed a bullish candle on the daily candlestick charts.
It is now trading above most of its short term and medium term moving averages which is a bullish sign. A large part of the rally was led by short coverings, suggest experts.
The Nifty struggled around 10,690-10,700 levels and despite an intraday breakout above 10,700, bulls failed to sustain above 10,690 on a closing basis. But, the up move could well extend towards 10,777-10,800 and a stop loss below 10,628 can be kept for all the long positions, suggest experts.
“Bulls continued their northward journey as they opened the show with a gap up on the first day of the week before signing off the session with a decent bullish candle. However, it appears that close to 10,700 levels they are witnessing some sort of selling pressure,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
related news
“Hence, in next session, it looks inevitable for bulls to consistently trade above 10,700 levels to retain the same bullish undertone. In that scenario we can expect this up move getting stretched up to 10777 kind of levels,” he said.
Mohammad further added that a sustainable close above 10,800 levels which shall clear the path to take off the critical hurdle of 10929 levels. Traders can trail their stop below 10,628 on a closing basis.
India VIX moved up by 3.28 percent at 13.05 levels. On the options front, maximum Put OI is intact at 10,500 followed by 10,600 strikes while maximum Call OI is seen at 10,800 followed by 11,000 strikes.
We have collated top 15 data points to help you spot profitable trade:
Key support and resistance level for Nifty
The Nifty closed at 10,688.7 on Monday. According to Pivot charts, the key support level is placed at 10,649.53, followed by 10,610.37. If the index starts moving upward, key resistance levels to watch out are 10,718.83 and 10,748.97.
Nifty Bank
The Nifty Bank index closed at 26,614.2. The important Pivot level, which will act as crucial support for the index, is placed at 26,354.16, followed by 26,094.13. On the upside, key resistance levels are placed at 26,793.96, followed by 26,973.73.
Call Options data
In terms of open interest, the 10,800 call option has seen the most call writing so far at 53.06 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 11,000 call option, which has seen 41.57 lakh contracts getting written so far. The 10,700 call option has accumulated 35.45 lakh contracts.
Highest Call writing was seen at the strike price of 10,900, which added 4.33 lakh contracts, followed by 10,700, which added 1.50 lakh contracts, and 11,000, which added 1.3 lakh contracts.
Call unwinding was seen at the strike price of 10,600, which shed 12.46 lakh contracts, followed by 10,500, which shed 2.48 lakh contracts, and 10,400, which shed 1.18 lakh contracts.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,500, in which 65.95 lakh contracts been added till date. This could be a crucial resistance level for the index in May series.
The 10,600 put option comes next, having added 45.64 lakh contracts so far, and the 10,300 put option, which has now accumulated 35.04 lakh contracts.
Put writing was seen at the strike price of 10,700, which added 11.62 lakh contracts, followed by 10,600, which added 10.92 lakh contracts and 10,800, which added over 1.29 lakh contracts.
Put unwinding was seen at the strike price of 10,400, which shed 3.22lakh contracts and 10,500, which shed 1.41 lakh contracts along with 10,300, which shed 1.13 lakh contracts.
FII & DII data:
Foreign institutional investors (FIIs) sold shares worth Rs 768.29 crore, while domestic institutional investors bought shares worth Rs 887.76 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.
156 stocks saw long buildup:
14 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
38 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates build-up of short positions.
2 stocks saw long unwinding
Bulk Deals:
Advanced Enzyme Tech Ltd: HDFC Mutual Fund bought 15,00,000 shares at Rs 222 per share
KSK Energy Ventures: Oriental bank of Commerce sold 35,00,000 shares at Rs 3.9 per share
Econo Trade India: Dipika Popatbhai Parmar bought 100,000 shares at Rs 19.75 per share
Tiaan Ayurvedic: BP Fintrade sold 129,985 shares at Rs 18.22 per share
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
MCX: The company will be meeting representatives with multiple investors between May 29 and May 31, 2018.
Granules: Several investors will meet representatives from the firm between May 29 and 30, 2018.
Shriram Transport Finance: Between May 29 and 31, 2018, the firm is meeting investors such as Wellington Management, Boston Company AMC, and Pioneer Investment Management.
Astra Microwave: The company will hold earnings call on May 29, 2018.
Stocks in news:
Larsen & Toubro: The company allotted 1.63 lakh shares to employees under ESOP scheme. Its Q4 profit up 5 percent YoY at Rs 3,167 crore; expects 12-15 percent revenue growth in FY19.
Vedanta: Tamil Nadu government orders permanent closure of Sterlite plant at Tuticorin.
Rural Electrification Corporation: Q4 net profit down 37 percent on higher provisions
Bank of India: Q4 loss at Rs 3,970 crore on higher provisions; asset quality worsens
Icra lowers ratings on Jet Airways' loan facilities
Piramal Enterprises: Q4 net up 21 percent at Rs 375 crore
NTPC: Company's Q4 net profit jumps 41 percent to Rs 2,926 crore
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 29, 2018 stocks such as Balrampur Chini, DHFL, IDBI, Jet Airways, Jain Irrigation, and Reliance Communications are present in this list.
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd and publishes Moneycontrol.com)