"Market gave highest daily closing since October 2018 signifying bulls have taken charge of the Dalal-Street. RSI has given breakout almost after 4 months, which suggest strength in the uptrend," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol.
The market staged a spectacular rally on March 11 with the Sensex rallying nearly 400 points and the Nifty 50 closing above the critical resistance level of 11,118. All sectoral indices participated in the rally barring IT, with Auto, Metals and PSU Bank rising 2-3 percent.
The 30-share BSE Sensex climbed 382.67 points or 1.04 percent to close at 37,054.10 after the Election Commission announced Lok Sabha poll dates.
The Nifty 50 rallied 132.60 points or 1.20 percent to 11,168, the highest closing level of 2019 and formed bullish candle on the daily charts.
"Market gave the highest daily closing since October 2018 signifying the bulls have taken charge of Dalal Street. RSI has given a breakout after almost four months, which suggest strength in the uptrend," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol.
The VIX closing below crucial levels of 15 & USD/INR showing strength by trading below 70 a dollar support the current rally, he said, pointing out that Nifty has managed to close above stiff resistance of previous swing high level of 11,118.
"As long as the index is trading above 11,050, we maintain buy on dip strategy while immediate resistance lies around 11,200-11,250 levels," he added.
Volatility has been falling over last seven trading sessions and lower volatility is providing comfort to bull zones to extend momentum and the Options band signifies a shift in the higher trading range between 10,985 to 11,300 zones, experts said.
Jayant Manglik, President - Retail Distribution, Religare Broking told Moneycontrol the breakout in the benchmark index, after four-month long consolidation phase, has further boosted the sentiment.
Stock selection, he believes remains the key as participation is limited mainly to the quality counters. "Nifty has the potential of testing 11,300-11,400 zone in near future."
The broader markets continued its sharp run with the Nifty Midcap and Smallcap indices gaining more than 2 percent each on top of 2.5 percent and 4 percent rally, respectively in the previous week.
We have collated top 10 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,168 on March 11. According to Pivot charts, the key support level is placed at 11,091.57, followed by 11,015.13. If the index starts moving upward, key resistance levels to watch out are 11,212.67 and 11,257.33
Nifty Bank
The Nifty Bank index closed at 27,968.60, up 206.80 points on March 11. The important Pivot level, which will act as crucial support for the index, is placed at 27,826.73, followed by 27,686.77. On the upside, key resistance levels are placed at 28,071.13, followed by 28,175.57.
Call Options Data
Maximum Call open interest (OI) of 22.46 lakh contracts was seen at the 11,400 strike price. This will act as a crucial resistance level for the March series.
This was followed by the 11,500 strike price, which now holds 22.42 lakh contracts in open interest, and 11,300, which has accumulated 19.28 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,400, which added 5.15 lakh contracts, followed by 11,700 strike, which added 0.63 lakh contracts.
Call unwinding was seen at the strike price of 11,000 that shed 1.28 lakh contracts, followed by 10,900 strike that shed 0.67 lakh contracts.
Put Options Data
Maximum Put open interest of 37.88 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 23.74 lakh contracts in open interest, and the 10,700 strike price, which has now accumulated 23.50 lakh contracts in open interest.
Put writing was seen at the strike price of 11,100, which added 7.21 lakh contracts, followed by 11,000 strike that added 4.17 lakh contracts and 11,200 strike that added 3.55 lakh contracts.
Put unwinding was seen at the strike price of 10,900 that shed 1.94 lakh contracts, followed by 10,800 strike that shed 0.29 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 3,810.60 crore while Domestic Institutional Investors sold Rs 1,955.55 crore worth of shares in the Indian equity market on March 11, 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.
150 stocks saw a long buildup
26 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
18 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.
4 stocks saw long unwinding
Bulk Deals on March 11
NSE
Bohra Industries: Aditi Speciality Packaging Private Limited bought 1,50,000 shares of the company at Rs 15.94 per share.
CG Power and Industrial Solutions: Bharti SBM Holdings Private Limited purchased 36,00,000 shares of the company at Rs 38.12 per share.
Mahamaya Steel Industries: Acestar Infosolutions bought 89,962 shares of the company at Rs 184.71 per share.
Reliance Communications: IndusInd Bank LTD Client A/C sold 1,70,00,000 shares of the company at Rs 5.54 per share.
Tourism Finance Corporation: Motilal Oswal Focused Emergence Fund bought 5,55,000 shares of the company at Rs 120.12 per share.
BSE
ISGEC Heavy Engineering: Ranjan Tandon sold 43,000 shares of the company at Rs 5,201.30 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Mahindra Logistics: Company's officials will interact with certain Analyst / Institutional Investor on March 12 in Mumbai.
Shoppers Stop: Company will meet Aliasgar Shakir, Vice President - Institutional Research and Abhijit Tare, Co-Head - Equity of Motilal Oswal Financial Services Limited on March 15.
Hindustan Aeronautics: Board meeting is scheduled on March 18 to consider the declaration of first interim dividend for the financial year 2018-19.
Vedanta: Company's officials will meet Mondrian Investment Partners and Ruffer & Co on March 12 in London.
DCM Shriram: Company's officials will meet Motilal Oswal Securities on March 14.
Shriram City Union Finance: Company's officials will meet fund/analyst/institutional investors on March 14, 15, 18, 25 and 28.
Aurionpro Solutions: Officials of the company will be meeting investors and analysts on March 12.
Aegis Logistics: Board meeting is scheduled to be held on March 18 to consider interim dividend during the financial year 2018-19.
Dr Lal PathLabs: Company's officials will meet analyst/institutional investors on March 12, 13, 14 and 22.
IDFC First Bank: Company's officials will meet fund/analysts/institutional investor/broker etc on March 13.
Shree Pushkar Chemicals & Fertilisers: Board meeting is scheduled on March 15 to consider the investment proposal for company's growth and any other matter with the permission of Chair.
Stocks in news
TVS Motor: Company declares second interim dividend of Rs 1.40 per share (140 percent)
Laurus Labs: Company received a final approval from USFDA for Hydroxychloroquine Tablets 200 mg and a tentative approval for an ANDA for ADL Tablets 600 mg/50 mg/300 mg.
Sundaram-Clayton: Company declares second interim dividend at the rate of Rs 16 per share (320 percent).
Advanced Enzyme Technologies: Promoter group - Chandrakant Rathi Innovations and Projects Pvt Ltd cuts its stake in company by 1.43 percent to 16.87 percent. Atharva Green Ecotech LLP also sold its entire 6.24 percent stake through open market transaction on March 8.
Jet Airways: Part repayment of the external commercial borrowing availed by the company, for working capital purposes, falling due on March 11, hasbeen delayed owing to temporary liquidity constraints and the company has engaged with the lender in relation to the same.
Ujaas Energy: Board of Directors approved disposal of its entire holding in its wholly own subsidiary, Eizooba Energy One Limited to ACA International Commerce FZE.
Welspun Corp: Company received additional pipe orders of 212 KMT on global basis. Out of these additional orders, 151 KMT will be serviced from India. The company's current order book stands at 1,667 KMTs valued at Rs 14,500 crore, after considering execution up to February 2019.
Adlabs Entertainment: Promoter Thrill Park released a pledge on another 0.07 percent stake.
Kalpataru Power Transmission: Board approved to purchase additional 8.54 percent equity shares and 14.99 percent preference shares of Shree Shubham Logistics Limited (SSLL), a 71.52 percent subsidiary of the company from existing shareholders of SSLL.
Piramal Enterprises: Piramal Critical Care launched Mitigo (Morphine Sulfate Injection, USP – Preservative-free) in 10 mg/mL and 25 mg/mL concentrations in the US market.
Ujjivan Financial Services: Company revised its record date for payment of interim dividend to March 23 from March 22 earlier.
PSP Projects: Company has received LOA/work orders worth Rs 601.21 crore for industrial, institutional, government and residential projects from various clients.
HDFC Standard Life: Promoter Standard Life (Mauritius Holdings) 2006 to sell up to 7 crore shares (representing 3.47 percent of paid-up equity), with an option to additionally sell up to 2.95 crore equity shares (representing 1.46 percent of paid-up equity) through offer for sale on March 12 and March 13.
Sundaram-Clayton: Company re-appointed Venu Srinivasan as Managing Director.
Godfrey Phillips' Clarification: The company had entered into a commercial arrangement with IPM Wholesale Trading Private Limited (an Indian entity and affiliate of Philip Morris International Inc., USA) to manufacture Marlboro cigarettes in India in May 2009 which is a year before May 2010 when the restrictions on FDI in manufacture of cigarettes came into being. The commercial arrangement is in complete compliance with the extant regulations governing the FDI laws in India. All the business transactions entered and executed between the parties since 2009 are governed by the above referred commercial arrangement. Incidentally, all the business transactions above are executed in Indian rupees.
Four 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 12, IDBI Bank, Reliance Infrastructure, Reliance Power and Jet Airways are present in this list.
