Shabbir Kayyumi of Narnolia Financial Advisors said going ahead the possibility of a small retracement has increased as majority of oscillators have reached overbought levels.
The BSE Sensex gained another 216 points on March 13 to close at 37,752.17, taking total gains to over 2,200 points in three consecutive weeks. Banking and financials drove the rally.
The Nifty 50 hit fresh six-month high and ended the session at 11,341.70, a gain of 40.50 points from previous settlement, but overall as it was a consolidation day, the index formed 'Hanging Man' kind of pattern on the daily charts.
"A small body positive candle has been formed with long lower shadow. Technically, this formation indicates a 'Hanging Man' type pattern. Normally, this pattern signals word of caution for long positions at the highs. But, confirmation of weakness is required to call this as a reversal," Nagraj Shetti, Senior Technical & Derivative Analyst at HDFC Securities told Moneycontrol.
Hence, the short term trend of Nifty continues to be positive and next upside resistance to be watched at 11,450 levels, he said.
India VIX increased by 1.18 percent to 15.27 levels. VIX closed higher after the declines of last seven-eight trading sessions but overall lower volatility is giving comfort to bulls.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors said going ahead the possibility of a small retracement has increased as a majority of oscillators have reached overbought levels.
On the downside, a decisive breach of 11,270 levels will push Nifty to 5-day Exponential Moving Average placed around 11,205 while on the upside, the next target for Nifty is 11,444-11,475, he added.
However, the broader markets caught in a bear trap after a rally for the last few sessions. The Nifty Midcap index was down 0.55 percent and Smallcap declined 0.2 percent.
We have collated top 10 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,341.70 on March 13. According to Pivot charts, the key support level is placed at 11,294.76, followed by 11,247.83. If the index starts moving upward, key resistance levels to watch out are 11,370.46 and 11,399.23.
Nifty Bank
The Nifty Bank index closed at 28,884.30, up 440.60 points on March 13. The important Pivot level, which will act as crucial support for the index, is placed at 28,516.1, followed by 28,147.9. On the upside, key resistance levels are placed at 29,090.1, followed by 29,295.9.
Call Options Data
Maximum Call open interest (OI) of 25.03 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 11,400 strike price, which now holds 22.79 lakh contracts in open interest, and 11,300, which has accumulated 19.58 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,500, which added 3.75 lakh contracts, followed by 11,600 strike, which added 3.11 lakh contracts, and 11,700 strike, which added 1.25 lakh contracts.
Call unwinding was seen at the strike price of 11,200 that shed 2.02 lakh contracts, followed by 11,100 strike that shed 1.25 lakh contracts and 11,000 strike which shed 0.8 lakh contracts.
Put Options Data
Maximum Put open interest of 39.88 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 11,200 strike price, which now holds 23.97 lakh contracts in open interest, and the 10,800 strike price, which has now accumulated 23.73 lakh contracts in open interest.
Put writing was seen at the strike price of 11,300, which added 4.94 lakh contracts, followed by 11,200 strike that added 3.92 lakh contracts and 11,400 strike that added 0.89 lakh contracts.
Put unwinding was seen at the strike price of 10,900 that shed 0.38 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 2,722.28 crore while Domestic Institutional Investors sold Rs 1,508.14 crore worth of shares in the Indian equity market on March 13, 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.
53 stocks saw a long buildup
24 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
61 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.
59 stocks saw long unwinding
Bulk Deals on March 13
NSE
Nagarjuna Oil Refinery: Multiplier S and S Adv Pvt Ltd sold 29,42,339 shares and Nagarjuna Trust also sold 51,00,000 shares of the company at 30 paise per share.
Reliance Communications: IndusInd Bank Ltd client A/c sold 1.4 crore shares of the company at Rs 4.97 per share.
Saketh Exim: TIA Enterprises Private Limited purchased 40,000 shares of the company at Rs 105 per share.
BSE
SAB Events & Governance Now Media: Union Bank of India sold 74,930 shares of the company at Rs 1.33 per share.
Hisar Metal Industries: Abhiram Tayal purchased 27,500 shares of the company at Rs 40.27 per share.
Indo US Bio-Tech: Riddheshkumar Girishbhai Bhandari bought 36,000 shares of the company at Rs 82.50 per share.
Palm Jewels: Sagar Rajeshbhai Jhaveri bought 1,04,000 shares of the company at Rs 30.66 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Alembic Pharma: NCD Committee meeting will be held on March 19 to consider the issue and allotment of unsecured listed redeemable non-convertible debentures (NCDs) of up to Rs 150 crore on private placement basis.
Virinchi: Officials of the company will be meeting investors and analysts (participants) on March 14.
Alankit: Management will be attending the Valorem Analyst Conference 2019, organized by Valorem Advisors to be held on March 15 in Mumbai.
Container Corporation of India: Company's officials will meet analysts/institutional investors on March 15, 18 and 26.
DCM Shriram: Company's officials will meet Bajaj Allianz Life Insurance Company on March 18.
Magma Fincorp: Company's officials will meet fund houses on March 14 and 15.
Voltas: Company's officials will meet analysts/investors on March 14 and 15.
Mahindra Logistics: One-on-one meeting with Premji Invest, Institutional Investor is scheduled to be held on March 15.
Stocks in news
Lupin: USFDA classifies the inspection at the company's Mandideep (Unit 1) facility as 'Official Action Indicated'.
Satin Creditcare Network: CARE revised its rating on the company's commercial paper to A2+ from A1.
Bajaj Consumer Care: Company engaged the services of Bain & Company which will help the company in formulating a front-end strategy for growth and also help in implementing it.
Sun Pharma: Subsidiary increased its stake in PJSC Biosintez, Russia to 96.96 percent from 85.10 percent earlier.
GE T&D India: Company received a technology-driven grid modernization project from Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPL).
Wipro: Chairman Azim Premji has earmarked another 34 percent of his equity in Wipro worth Rs 52,750 crore towards Azim Premji Foundation.
Unichem Labs: USFDA approved the company's ANDA for Allopurinol tablets, USP 100 mg and 300 mg.
Essel Propack: Company redeemed commercial papers amounting to Rs 50 crore and Rs 35 crore.
Deep Industries: Company received 2 orders from ONGC in the rigs segment valued at around Rs 183.50 crore.
Sicagen India: Company made additional investment to the extent of SGD 1 million in subsidiary Wilson Cable Private Limited, Singapore.
HCL Technologies: Company to acquire Strong-Bridge Envision (SBE), a digital transformation consulting firm with offices in Seattle, Denver, Atlanta, and New York City.
IOC: Company has fixed March 28 as the record date for payment of 2nd interim dividend, if declared, at the board meeting scheduled on March 19.
Jet Airways: Additional five aircraft have been grounded due to non-payment of amounts outstanding to lessors under their respective lease agreements.
DCM Shriram: Company commissioned its 30 MW power plant at DSCL Sugar Hariawan Unit.
SRS: Company appointed Vikash Sharma as CFO.
Five 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 14, BEML, IDBI Bank, Reliance Infrastructure, Reliance Power and Jet Airways are present in this list.
