Traders are advised to tread with caution and use rallies to create short positions. The short-term trend will favor bears as long as Nifty trades below 11,760 levels suggest experts.
The Nifty which started on a positive note failed to hold on to momentum and breached its 5-day exponential moving average in September 3. The index closed below its crucial support placed at 11,600 and made a robust bear candle on daily charts which resembles a Bearish Belt Hold kind of pattern.
The Nifty index found support at 13-day exponential moving average (EMA) before closing the day at 11,582, down nearly 1 percent from the previous close of 11,680.
Traders are advised to tread with caution and use rallies to create short positions. The short-term trend will favor bears as long as Nifty trades below 11,760 levels suggest experts.
“Finally bulls appear to have surrendered as they were trapped near to the lifetime highs as the index opened with a strong gap-up before signing off the session with a robust bear candle. This reversal formation confirmed the short term top around 11760 levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.
“As the index settled below its ascending channel which was in progress from the lows of 10557 for the last 45 days it has opened up a new downside target placed around 11425 levels. However, in between a decent support can be expected in the zone of 11499 – 11486 levels breach of which shall further accelerate the selling pressure,” he said.
Mohammad advises traders to create fresh short positions by making use of pullback attempt as index head towards 11,650 levels. “Short-term trend will continue to favor bears till the Nifty 50 closes above 11,760 levels,” he said.
India VIX spiked up by 6.29 percent at 13.39 and a sudden jump in volatility is a cause of concern for immediate basis.
Here are top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,582.3 on Monday. According to Pivot charts, the key support level is placed at 11,515.87, followed by 11,449.43. If the index starts moving upwards, key resistance levels to watch out are 11,700.27 and 11,818.23.
Nifty Bank
The Nifty Bank index closed at 27,819.5 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 27,663.54, followed by 27,507.57. On the upside, key resistance levels are placed at 28,089.33, followed by 28,359.17.
Call Options Data
Maximum call open interest (OI) of 34.73 lakh contracts was seen at the 11,800 strike price. This will act as a crucial resistance level for the September series.
This was followed by the 12,000 strike price, which now holds 28.86 lakh contracts in open interest, and 11,700, which has accumulated 24.12 lakh contracts in open interest.
Call writing was seen at the strike price of 11,800, which added 7.30 lakh contracts, followed by 11,700 which added 3.58 lakh contracts and 12,000 which added 2.47 lakh contracts.
There was hardly any Call unwinding seen.
Put Options data
Maximum put open interest of 34.49 lakh contracts was seen at the 11,600 strike price. This will act as a crucial support level for the September series.
This was followed by the 11,500 strike price, which now holds 31.56 lakh contracts in open interest, and the 11,400 strike price, which has now accumulated 31.37 lakh contracts in open interest.
Put writing was seen at the strike price of 11,200, which added 4.08 lakh contracts in open interest, followed by 11,800 which added 2.55 lakh contracts and 11,700 which added 2.39 lakh contracts.
There was hardly any Put unwinding seen.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 21.13 crore and domestic institutional investors sold shares worth Rs 171.92 crore in the Indian equity market on Monday, 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.
34 stocks saw a long buildup
38 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
70 stocks saw a short build-up
An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.
65 stocks saw long unwinding
Bulk Deals
Celestial Biolabs Limited: Ganesh Kumar bought 2,23,679 shares at Rs 18.21 per share.
Hikal Limited: The International Finance Corporation sold 39,82,517 shares at Rs 166.51 per share
IG Petrochemicals: Birla Mutual Fund A/C Birla Sun Life Pure Value Fund bought 5,00,000 shares at Rs 480 per share
IG Petrochemicals Ltd.: Shekhavati Investment Corporation Limited sold 10,27,804 shares at Rs 480.02 per share
Mahindra Lifespace: American Fund Insurance A/C American Insurance Series Global Small Capitalisation Fund sold 7,11,051 shares at Rs 440.42 per share
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Mahindra Lifespaces: The company will have an interaction with Reliance Alternate Investment Fund on September 7, 2018.
Greaves Cotton: Birla Sun Life AMC and Arihant Capital Markets will be meeting the management between September 4 and 5, 2018.
Yes Bank: Aegon Life Insurance, Abakkus Asset Manager, Canara Robeco AMC, Baroda Pioneer MF, and Karvy met representatives of the firm on August 31, 2018.
BEL: The company will be meeting analysts on September 25, 2018.
Stocks in news
Axis Bank: The lender allots over 2 lakh shares at Rs 2 each under its employee stock options scheme (ESOPs).
Persistent Systems: The company has acquired Herald Tech.
Reliance Infra: The firm has paid Rs 2,640 crore outstanding electricity dues to Maharashtra government.
Marico: Company aims up to 10% volume growth, healthy market share gains in 5 years
No stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For September 4, not a single stock is present in this list.