Investors are advised to stay cautious or at best remain neutral, suggest experts.
Just as we thought the bulls regained their hold on D-Street last week, bears made a comeback pushing Nifty below the crucial support levels as well as its 5 & 13 exponential moving averages (EMA) on Monday. The index formed a bearish candle on the daily charts which also resembles a Bearish Harami kind of pattern.
It seems like the index is stuck in a range of 100-150 points and now a breakout above 10,850-10895, or a breakdown below 10,700 could fuel selling pressure on D-Street. Investors are advised to stay cautious or at best remain neutral, suggest experts.
The Nifty also broke below two key short-term moving averages namely 5-days exponential moving average (EMA) placed at 10,775 and 13-EMA at 10,764.
The Nifty which opened flat rose marginally to hit an intraday high of 10,831. It failed to hold on to momentum and hit an intraday low of 10,753 before closing at 10,762, down 59 points.
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Bank Nifty formed an Inside Bar pattern as it moved inside the range of the last session. The index has to now hold above 26,500 zones to witness an up move towards 26,750 and then towards 27,000 zones while a hold below 26,450 could see a dip towards 26,250 zones suggest experts.
“Monday’s price action on Nifty with a Bearish Candle formation post Friday’s strong up move is clearly suggesting that this market is directionless and is in need of a breakout on either of the side for a directional move,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“On the downside, 10,700 still appears to be the critical support and a breach of which should ideally enhance selling pressure with bright prospects of Nifty heading towards 10,400 levels whereas on the upside 10,850 is still acting as a hurdle which needs to be conquered to unleash a fresh leg of up move in northern direction,” he said.
Mohammad further added that till such a breakout in either of the directions takes place this market shall continue to remain listless in the expiry week and it looks that traders will be better off by adopting a neutral stance.
India VIX moved up by 4.68 percent at 12.58 levels. On the options front, maximum Put OI is placed at 10,700 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,800 and 10,900 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 10,762.5 on Monday. According to Pivot charts, the key support level is placed at 10,733.33, followed by 10,704.17. If the index starts moving upwards, key resistance levels to watch out are 10,811.33 and 10,860.17.
Nifty Bank
The Nifty Bank index closed at 26,609.7 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 26,520.16, followed by 26,430.63. On the upside, key resistance levels are placed at 26,752.06, followed by 26,894.43.
Call Options Data
Maximum call open interest (OI) of 54.90 lakh contracts was at the 11,000 strike price, which will act as a crucial resistance level for the index in the June series.
This was followed by the 10,800 strike price, which now holds 44.58 lakh contracts in open interest, and 10,900, which has accumulated 44.40 lakh contracts in open interest.
Call writing was seen at the strike price of 10,800, which added 13.05 lakh contracts, followed by 10,900, which added 11.86 lakh contracts and 11,000, which added 7.32 lakh contracts.
Call unwinding was seen at the strike price of 11,200, which shed 2.74 lakh contracts, followed by 11,100, which shed 1.77 lakh contracts.
Put Options data
Maximum put open interest of 46.95 lakh contracts was seen at the 10,700 strike price, which will act as a crucial base for the index in June series.
This was followed by the 10,600 strike price, which now holds 37.97 lakh contracts in open interest, and the 10,200 strike price, which has now accumulated 29.07 lakh contracts in open interest.
There was hardly any Put writing seen.
Put unwinding was seen at the strike price of 10,700, which shed 10.11 lakh contracts, followed by 10,800 which shed 5.72 lakh contracts and 10,600, which shed 4.93 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) bought shares worth Rs 198.68 crore, while domestic institutional investors sold shares worth Rs 86.22 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.
13 stocks saw long buildup
30 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
116 stocks saw short build-up
An increase in open interest along with a decrease in price mostly indicates build-up of short positions.
51 stocks saw long unwinding
Bulk Deals:
Sumeet Industries: Mystique Media Private Limited bought 4,79,871 shares at Rs 16.32 per share
Tube Investment: Enam Securities Private Limited bought 11,73,374 shares at Rs 222 per share
(For more bulk deals, click here)
Analyst or Board Meet/Briefings:
Blue Star: The firm had an interaction with MFS Investment on June 25, 2018.
Bharat Forge: UBS Global AMC and Hermes Investment Management will meet the firm on June 27-28, 2018.
Stocks in news:
Bajaj Auto: Company to set up assembly unit in Indonesia this year
Jet Airways: Company says to buy additional 75 Boeing 737 Max jets
Hero MotoCorp: Company expects double-digit growth for global biz in FY'19
NHPC: Company has signed power purchase agreement with UP Power Corporation, Lucknow
Blue Star: The company allotted 15,800 shares under ESOP scheme.
Grasim: Jaya Shree Textiles Declares Lock-out At Rishra Plant Effective June 25
Piramal Enterprises to sell arm Piramal Imaging to Alliance Medical Acquisitionco
Fortis Healthcare board meeting to consider Q4 results adjourned on June 25; to be re-convened on June 26, 2018
6 stocks under ban period on NSE
Securities 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 June 26, 2018, CG Power, DHFL, IDBI, Infibeam, JP Associates and Wockhardt are present in this list.