Most technical experts are of the view that it is critical for the index to close above 10620 levels for the bulls to regain control while on the downside crucial support for the index is placed at 10500 levels.
The Nifty saw week of consolidation as it remained in a narrow range of 142 points and ended with a Hanging Man kind of formation.
The index, which opened with a small gap on the upside in morning trade on November 9, failed to hold on to gains and turned negative making the same pattern on daily charts.
A Hanging Man is a bearish reversal candlestick pattern, which is usually formed at the end of an uptrend or at the top (more than 600-point rally from its recent low of 10,004 recorded on October 26).
Most technical experts are of the view that it is critical for the index to close above the 10,620 level for the bulls to regain control, while on the downside crucial support for the index is placed at the 10,500 level.
"This kind of narrow ranges may eventually lead to a spurt in either of the directions," Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in told Moneycontrol.
Further, experts such as Shabbir Kayyumi of Narnolia Financial Advisors believe that the "Parabolic SAR" remains in sell mode and suggests buying only if prices cross its SAR level, which is currently around 10,825. So, medium-term bullishness should be considered only above this level.
For the uninitiated, parabolic SAR is a technical indicator used to determine the price direction of an asset, as well draw attention to when the price direction is changing, according to Investopedia.
"Options data indicates an immediate trading range between 10,700 and 10,450 marks. Bulls should get cautious if Nifty falls below 10450 followed by 10,380 levels," Kayyumi further wrote in his column.
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 10,585.2 on Friday. According to Pivot charts, the key support level is placed at 10,546.83, followed by 10,508.47. If the index starts moving upwards, key resistance levels to watch out are 10,621.53 and then 10,657.87.
Nifty Bank
The Nifty Bank index closed at 25,771.0 on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 25,638.93, followed by 25,506.87. On the upside, key resistance levels are placed at 25,506.87, followed by 25,954.87.
Call Options Data
Maximum Call open interest (OI) of 29.89 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the November series.
This was followed by the 10,800 strike price, which now holds 26.84 lakh contracts in open interest, and 10,700, which has accumulated 26.03 lakh contracts in open interest.
Maximum call writing was seen at the strike price of 11,000, which added 3.14 lakh contracts, followed by 10,800 which added 2.56 lakh contracts, and 10,700, which added 2.01 lakh contracts.
Call unwinding was seen at the strike price of 10,500, which shed 1.15 lakh contracts, followed by 10,400 which shed 57,525 contracts and 10,300 which shed 45,450 contracts.
Put Options data
Maximum Put open interest of 49.95 lakh contracts was seen at the 10,000 strike price. This will act as a crucial support level for the November series.
This was followed by the 10,200 strike price, which now holds 32.40 lakh contracts in open interest, and the 9,800 strike price, which has now accumulated 30.62 contracts in open interest.
Put writing was seen at the strike price of 10,100, which added 4.73 lakh contracts in open interest, followed by 10,500 which added 1.24 lakh contracts and 9,600 which added 55,575 contracts.
Put writing was seen 2.06 lakh contracts at the strike price of 11,000, followed by 10,000, which shed 1.43 lakh contracts and 10,200, which shed 1.07 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) bought shares worth Rs 614.14 crore and domestic institutional investors sold Rs 337.28 crore worth of shares in the Indian equity market on Friday, 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.
72 stocks saw a long buildup
81 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
34 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.
17 stocks saw long unwinding
Bulk Deals
Infibeam: Vaibhav Stock and Derivatives traded 34.33 lakh shares at Rs 55.88-55.91.
Jet Airways: Shaastra Securities Trading traded 7.77 lakh contracts at Rs 260.82-260.93 apiece.
PC Jeweller: Centillion Research traded 70.02 lakh shares at Rs 85.38-85.42 apiece.
Texmaco Infra: Zuari Global bought 17.20 lakh shares at the rate of Rs 58 apiece.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
TVS Motor: The company will be meeting representative of JP Morgan in London on November 28, 2018.
The Great Eastern Shipping Company: The firm will be meeting representatives of Nalanda Capital in Mumbai on November 12, 2018.
Stocks in news
Titan Q2: Net profit growth at Rs 314.4 crore, up 2.9% YoY; operating margin falls to 10.6%
Reliance Communications: Settles case of alleged failure to inform interest payment default on debentures
NHPC: The Board will consider share buyback proposal next week
Jet Airways: Vikram Singh Mehta has resigned as an independent director
Syndicate Bank: The lender raised MCLR by up to 0.15 percent.
BGR Energy Systems: The company's net profit jumped over 5-folds to Rs 6.19 crore.
IEX: The company's net profit jumps 30% in September quarter
Tata Motors: JLR October sales down 4.6% at 44,282 units in October
Sobha: Its Q2 profit jumped 22% at Rs 61.4 crore
Wipro: The company-owned Appirio expands operations in Portugal.
IndiGo: DGCA directs IndiGo, GoAir to address issues with 15 P&W engines
IOB: The lender has hiked benchmark lending rate by 0.05%.
No stock 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 November 12, 2018 not a single stock is present in this list.
With inputs from agencies
