Jayant Manglik of Religare Broking said traders should strictly hedge their positions.
Bulls continued to dominate Dalal Street for third consecutive session on Wednesday. Despite mixed global cues, the Nifty50 closed above psychological 11,000 levels for the first time since February 7, 2019.
The index rallied 65.55 points to 11,053 and formed bullish candle on the daily charts. The 30-share BSE Sensex climbed 193.56 points to 36,636.10.
The short term trend is expected to be positive after crossing psychological levels, but there could be some consolidation following three-day rally, experts said.
"Considering a sharp upmove over the last few sessions, some consolidation at higher levels cannot be ruled out in the near term, Jayant Manglik, President - Retail Distribution at Religare Broking said, adding traders should strictly hedge their positions.
The market breadth was positive throughout the day as two shares advanced for every share falling on the NSE.
"Although Nifty is trading in a positive note continuously for the last three days, the majority of the oscillators are now entered in the overbought zone. So the possibility of small retracement cannot be ruled out, Shabbir Kayyumi, Head - Technical and Derivative Research at Narnolia Financial Advisors, told Moneycontrol.
He said index trading above Wednesday's pivot point (11,050) will accelerate upmove taking it higher towards previous month's high placed around 11,117.90 levels; however, a close below the strong support (11,000) will push prices lower towards 10,930 levels.
The Nifty Midcap index gained 0.6 percent and Smallcap index climbed 0.7 percent.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,053 on March 6. According to Pivot charts, the key support level is placed at 11,013.77, followed by 10,974.53. If the index starts moving upward, key resistance levels to watch out are 11,077.27 and 11,101.53.
Nifty Bank
The Nifty Bank index closed at 27,625.65, up 71.60 points on March 6. The important Pivot level, which will act as crucial support for the index, is placed at 27,517.97, followed by 27,410.23. On the upside, key resistance levels are placed at 27,707.57, followed by 27,789.43.
Call options data
Maximum Call open interest (OI) of 20.80 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the March series.
This was followed by the 11,000 strike price, which now holds 17.62 lakh contracts in open interest, and 11,400, which has accumulated 16.09 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,400, which added 3.18 lakh contracts, followed by 11,300 strike, which added 2.39 lakh contracts and 11,100 strike that added 1.22 lakh contracts.
Call unwinding was seen at the strike price of 10,800 that shed 1.57 lakh contracts, followed by 10,900 strike that shed 1.21 lakh contracts.
Put options data
Maximum Put open interest of 29.22 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for the March series.
This was followed by the 10,800 strike price, which now holds 22.97 lakh contracts in open interest, and the 10,700 strike price, which has now accumulated 22.63 lakh contracts in open interest.
Put writing was seen at the strike price of 11,000, which added 7.38 lakh contracts, followed by 11,100 strike that added 2.63 lakh contracts and 10,900 strike that added 2.47 lakh contracts.
Put unwinding was seen at the strike price of 10,600 that shed 3.46 lakh contracts, followed by 11,500 strike which shed 0.17 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 1,130.78 crore while Domestic Institutional Investors sold Rs 878.45 crore worth of shares in the Indian equity market on March 6, as per provisional data available on the NSE.
Fund flow picture
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting delivery of the stock, which means that investors are bullish on it.
62 stocks saw a long buildup
55 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
41 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.
39 stocks saw long unwinding
Bulk Deals on March 06
NSE
Keerti Know & Skill: Ajit Laxmichand Jain HUF sold 20,000 shares of the company at Rs 70 per share.
Lakshmi Vilas Bank: Premjayanti Enterprise Pvt Ltd sold 14,50,000 shares of the company at Rs 76.59 per share.
OnMobile Global: Altruist Technologies Private Limited bought 5,70,763 shares of the company at Rs 33.04 per share.
Sunteck Realty: BNP Paribas Arbitrage bought 21,10,027 shares of the company at Rs 370.06 per share.
BSE
Sunteck Realty: BNP Paribas Arbitrage further bought 20,16,540 shares of the company at Rs 370 per share.
7NR Retail: Rathod Manoj Chhaganlal HUF sold 84,000 shares of the company at Rs 34.75 per share.
Jaipan Industries: Capgrow Capital Advisors LLP sold 36,618 shares of the company at Rs 16.70 per share.
Majestic Research: Veer Enterprise sold 1,03,200 shares of the company at Rs 30.33 per share.
Relaxo Footwears: Afis A/C American Funds Insurance Series Growth Income Fund bought 8,67,238 shares of the company at Rs 715 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Polyplex Corporation: Extraordinary General Meeting to be held on March 30.
Tube Investments of India: Conference Call with Institutional Investor to be held on March 7.
BCL Industries: Management of the company will be attending the Valorem Analyst Conference 2019 on March 15.
South Indian Bank: Officials of the company will be meeting a group of institutional investors at Prabhudas Liladhar Conference on March 8.
HUDCO: The board meeting to be held on March 12 to consider raising of funds through issue of bonds/ debentures.
Mahindra & Mahindra Financial Services: Company's officials will attend Prabhudas Lilladher - Investor Conference on March 7 and Morgan Stanley - Investor Groups on March 14.
Take Solutions: Company's officials will meet analyst/institutional investor in Buyside Non-deal Roadshow on March 7.
TRF: Investors' Conference Call is scheduled to be held on March 11.
Sheela Foam: Officials of the company will be meeting with various investors on March 7 in Singapore and on March 8 in Hong Kong.
Mahindra Logistics: One-on-one conference call is scheduled to be held with Mission Holdings on March 7.
Asian Paints: Company's officials will meet investors on March 8, 13, 14 and 15.
eClerx Services: Company's officials will interact with Franklin Templeton Investments on March 7.
Stocks in news
Vedanta: Board approved 2nd interim dividend of Rs 1.85 per share i.e. 185 percent on face value of Re 1 for the financial year 2018-19.
Varroc Engineering: Step down subsidiary Varroc Lighting Systems, Poland opened new Research & Development Centre.
Asian Granito India: Board approved the issue of 50 lakh convertible warrants at a price of Rs 180 per convertible warrants to promoter, promoter group and non-promoters. Board also approved the overall limit of Rs 300 crore for related party transaction with subsidiary company Crystal Ceramic Industries Private Limited.
Biocon: USFDA concluded a pre-approval inspection of company's insulin drug substance manufacturing facility triggered by a New Drug Application submitted by insulin AP/customer. The inspection at the Bengaluru facility took place between February 25-March 5, resulting in a Form 483 with six observations.
MEP Infrastructure Developers: Promoter released a pledge on 38 lakh shares (representing 2.07 percent of total paid-up equity).
Jayant Agro-Organics: Promoter Jayant Finvest increases stake in company by 3.22 percent to 58.93 percent.
Ajmera Realty & Infra India: Promoter ARIIL Trust raises stake in company by 2.78 percent to 52.81 percent.
Leel Electricals: Bharat Raj Punj, Managing Director of the company has tendered his resignation due to his personal and professional reasons.
Himachal Futuristic Communications: Company bags orders of Rs 117 crore for supply of optical fibre cables from Tata Project.
Asahi Songwon Colors: Plant operations of CPC crude blue plant at Padra, Vadodara have been restarted after planned shutdown for periodic maintenance.
HDFC: Board approved the payment of interim dividend of Rs 3.50 per share for the financial year ending March 2019.
Cyient: Company selected by UK Power Networks to develop an outage planning portal.
HSIL: Reliance MF cuts its stake in company by 0.65 percent to 4.47 percent.
Three 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 March 7, IDBI Bank, Reliance Power and Wockhardt are present in this list.
