Jayant Manglik of Religare Broking said he reiterated consolidation view on Nifty and suggests maintaining 'buy on dips' approach.
The market reversed all its previous day gains and ended F&O expiry session at record closing high on May 30, driven by index heavyweights HDFC Twins and Reliance Industries ahead of Modi 2.0 government formation and Q4 GDP data due later in the day.
The BSE Sensex rallied 329.92 points to 39,831.97 while the Nifty 50 climbed 84.80 points to 11,945.90, forming a bullish candle on daily charts. The index gained 2.6 percent in May series.
"A long bull candle was formed, that has almost engulfed the negative candles of the last couple of sessions. We observe consistent higher low formations and the Nifty is sustaining above the immediate supports of 11,850 levels. The opening upside gap of 20th May is still unfilled, eight sessions after its formation. This is a positive indication," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
The near term uptrend structure remains intact and one may expect Nifty to advance towards the upper 12,050 levels soon, he said.
Jayant Manglik, President - Retail Distribution, Religare Broking said he reiterated consolidation view on Nifty and suggests maintaining 'buy on dips' approach.
Among the sectoral indices, banking holds the key for further surge else consolidation will continue, he feels.
The broader markets also participated in the rally. The Nifty Midcap index gained 0.8 percent and Smallcap index rose 0.4 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,945.90 on May 30. According to the Pivot charts, the key support level is placed at 11,880.7, followed by 11,815.5. If the index starts moving upward, key resistance levels to watch out are 11,989.8 and 12,033.7.
Nifty Bank
The Nifty Bank index closed at 31,537.10, up 241.55 points on May 30. The important Pivot level, which will act as crucial support for the index, is placed at 31,309.07, followed by 31,081.03. On the upside, key resistance levels are placed at 31,692.17, followed by 31,847.23.
Call options data
Maximum Call open interest (OI) of 36.45 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the June series.
This was followed by 12,500 strike price, which now holds 27.39 lakh contracts in open interest, and 12,200, which has accumulated 18.59 lakh contracts in open interest.
There was hardly any Call writing seen.
Call unwinding was seen at the strike price of 11,900, which shed 23.77 lakh contracts, followed by 12,000 strike price that shed 16.97 lakh contracts.
Put options data
Maximum Put open interest of 31.75 lakh contracts was seen at 11,900 strike price. This will act as a crucial support level for the June series.
This was followed by 11,800 strike price, which now holds 28.46 lakh contracts in open interest and 11,700 strike price, which has now accumulated 18.57 lakh contracts in open interest.
Put writing was seen at the strike price of 11,900, which added 19.84 lakh contracts, followed by 11,800 strike which added 7.59 lakh contracts.
Put unwinding was seen at the strike price of 12,000, which shed 5.24 lakh contracts, followed by 11,700 strike price that shed 3.9 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.
11 stocks saw a long buildup
116 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
2 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.
68 stocks saw long unwinding
Rollovers
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth net Rs 1,664.74 crore while Domestic Institutional Investors (DIIs) sold Rs 1,122.6 crore worth of shares in the Indian equity market on May 30, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in news
Results on May 31: Encore Software, Lakshmi Overseas Industries, MVL, Nakoda, Nitco, Orchid Pharma, United Textiles
ONGC Q4: Profit down 51 percent at Rs 4,044.6 crore versus Rs 8,262.7 crore; revenue down 3.4 percent at Rs 26,758.5 crore versus Rs 27,694 crore (QoQ).
Coal India Q4: Profit at Rs 6,024.2 crore versus Rs 1,302.6 crore, revenue up 7.5 percent at Rs 28,546.3 crore versus Rs 26,547 crore (YoY).
IDBI Bank Q4: Loss at Rs 4,918.4 crore versus loss of Rs 5,662.8 crore; NII up 75.7 percent at Rs 1,609 crore versus Rs 915.7 crore (YoY).
Jain Irrigation Q4: Profit down 39.5 percent at Rs 56.1 crore versus Rs 92.7 crore; revenue down 6 percent at Rs 2,583.1 crore versus Rs 2,747.8 crore (YoY).
KNR Constructions Q4: Profit up 15.6 percent at Rs 92.1 crore versus Rs 79.7 crore; revenue up 14.6 percent at Rs 715.7 crore versus Rs 624.4 crore (YoY).
Jet Airways: Company not in a position to consider & approve audited Q4 financial results due to ongoing bidding process.
Bulk Deals
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Analyst or Board Meet/Briefings
NIIT: Amit Roy - Chief Financial Officer and Kapil Saurabh - Associate Vice President will be attending B & K Investor Conference on May 31 in Mumbai.
Globus Spirits: Company's officials will be attending B & K Investor Conference on May 31 in Mumbai.
Future Consumer: Analyst(s) / Institutional Investor(s) Meeting(s) are scheduled to be held on May 31, 2019 in Mumbai.
DCM Shriram: Company's officials will be attending B & K Investor Conference on May 31 in Mumbai.
Galaxy Surfactants: Company's officials will be attending B & K Investor Conference on May 31 in Mumbai.
Eicher Motors: Company's officials will meet Abu Dhabi Investment Authority on May 31.
Exide Industries: Board meeting is scheduled on August 2 to consider and approve unaudited financial results of the company for the quarter ending June 30, 2019.
J Kumar Infraprojects: Call with the Analysts will be held on Monday, June 3 to discuss the performance/results of the company audited standalone financial statements for the 4th quarter and Financial Year ended 31st March 2019 and related issues.
GMR Infrastructure: Company would be having a conference call with Investors/ Analysts to discuss the FY2019 results. The conference call is scheduled for May 31, 2019.
