Rohit Singre of LKP Securities said that a good recovery from strong support zone of 11,820 suggests that the index could resume its overall uptrend soon.
The market gained for the second straight session and closed at a three-week high on July 2 on optimism ahead of the 2019 Union Budget and hopes of a resolution in the ongoing trade war between the US and China.
The BSE Sensex rose 129.98 points to 39,816.48, while the Nifty50 climbed 44.70 points to 11,910.30 and formed a small bullish candle resembling a Hanging Man kind of pattern on the daily charts.
"A small body positive candle was formed today with long lower shadow. Technically, this pattern indicates continuation of sideways range movement in the market. A sustainable move above 11,920 levels could have further positive impact on the market," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
According to Shetti, the short term Nifty trend remains positive and it could reach upside levels of 12,000 in the next few sessions.
Rohit Singre, Senior Technical Analyst - LKP Securities reiterated that a good recovery from strong support zone of 11,820 suggests that the index may resume its overall uptrend soon.
Broader markets were mixed in trade with the Nifty Midcap index rising 0.4 percent, while the Smallcap index ended flat with a negative bias.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,910.30 on July 2. According to Pivot charts, the key support level is placed at 11,844.17, followed by 11,778.03. If the index starts moving upward, the key resistance levels to watch out are 11,946.97 and 11,983.63.
Nifty Bank
The Nifty Bank closed at 31,283.30, down 88.90 points on July 2. The important Pivot level, which will act as a crucial support for the index, is placed at 31,115.17, followed by 30,947.03. On the upside, key resistance levels are placed at 31,441.37, followed by 31,599.44.
Call options data
Maximum Call open interest (OI) of 15.29 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.
This is followed by 12,500 strike price, which now holds 13.07 lakh contracts in open interest, and 12,300, which has accumulated 11.16 lakh contracts in open interest.
Significant Call writing was seen at 12,300 strike price, which added 1.37 lakh contracts, followed by a 12,400 strike price which added 0.92 lakh contracts and 11,900 strike which added 0.90 lakh contracts.
There was hardly any Call unwinding seen.
Put options data
Maximum Put open interest of 16.68 lakh contracts was seen at the 11,500 strike price. It will act as a crucial support level for the July series.
This was followed by 11,300 strike price, which now holds 12.14 lakh contracts in open interest and 11,800 strike price, which has now accumulated 10.86 lakh contracts in open interest.
Put writing was seen at the 11,900 strike price, which added 1.27 lakh contracts, followed by 11,700 strike price that added 1 lakh contracts and 11,800 strike which added 0.74 lakh contracts.
There was hardly any Put unwinding seen.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on it.
46 stocks saw a long buildup
53 stocks that 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.
24 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Karnataka Bank: Board meeting is scheduled on July 12 to consider June quarter earnings.
Trident: Board meeting is scheduled on July 18 to consider June quarter earnings.
Orient Bell: Company's officials will meet analysts/investors on July 3 at Delhi.
IRCON International: Investor/ Analyst meet is scheduled to be held with Karma Capital on July 4.
Himachal Futuristic Communications: Board meeting is scheduled on July 10 to consider June quarter earnings.
Oriental Hotels: Board meeting is scheduled on July 23 to consider June quarter earnings.
Stocks in news
Shoppers Stop: Aditya Birla Sun Life MF buys 2 percent stake in company on June 28.
BHEL: D Bandyopadhyay, Director, has been given additional charge of CMD till Nalin Shinghal joins as CMD.
Kalpataru Power Transmission: Company to buy balance 19.94 percent stake in Shubham Logistics for Rs 64.66 crore. Its stake in SSL increased to around 100 percent.
Aditya Birla Fashion and Retail: Company approved completion of acquisition of the business undertakings of Jaypore and TG Apparel.
Graphite India: Company decided to permanently close operations in the Bengaluru plant in Whitefield.
Persistent Systems: Sanjay Kumar Bhattacharyya resigned as Independent Director.
Tata Sponge Iron: Promoter Tata Steel will participate in the rights issue to the extent of 90 percent of the rights issue size, i.e., up to Rs 1,485 crore.
Mindtree: L&T increased its stake in company to 60.06 percent after buying shares between June 17-28.
KPI Global: Company has signed new power purchase agreements (PPAs) totaling 1.475 MW for executing solar power project under 'Independent Power Producer (IPP)' category.
UCO Bank: Reserve Bank of India has imposed penalty of Rs 50 lakh on bank.
Allahabad Bank: Reserve Bank of India has imposed penalty of Rs 50 lakh on bank.
Bulk deals
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Fund Flow Picture
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 512 crore, but Domestic Institutional Investors (DIIs) bought Rs 141.09 crore worth of shares in the Indian equity market on July 2, as per provisional data available on the NSE.
One stock under F&O ban period on NSE
For July 3, DHFL is under the F&O ban period.
Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
