Bank Nifty registered a fresh breakout which has opened up the possibility of a bigger upswing in this index with initial targets placed in the zone of 26,200 – 26,300 levels
The Nifty, which started with a gap on the higher side, reclaimed its crucial resistance level of 10,700 on Monday to close near its intraday high making a strong bullish candle on the daily candlestick charts.
Formation of a strong bullish candle after three consecutive bearish candles suggests that we could have made an intermediate bottom, but a firm close above 10,780 could put bulls back in driver’s seat. Investors who are long in the index should keep a stop below 10600.
The Nifty finally negated formation of lower highs and lower lows formation on a daily scale which means buying was witnessed at lower levels. The index which opened at 10,653.15 rose to an intraday high of 10,725.65. It slipped to an intraday low of 10,635.65 to close at 10,715.50, up 97.25 or nearly 1 percent.
“Bulls appear to have made a strong come back as Nifty registered a solid bullish candle after testing the critical support levels of 10,600 in last Friday’s session. This up move not only negated bearish formations registered last week but also appears to have resumed fresh leg of the upswing from recent lows of 10,601,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
“The current up move is broad-based with wider participation from multiple sectors like autos, FMCG, metals and PSU Banks. The Nifty can be expected to clear its immediate hurdle of 10,785 levels and head towards its logical target of 10,928,” he said.
Interestingly, Bank Nifty registered a fresh breakout which has opened up the possibility of a bigger upswing in this index with initial targets placed in the zone of 26,200 – 26,300 levels.
Mohammad further added that fresh breakout in Bank Nifty should assist the bulls in taking Nifty towards much higher levels. “Hence, traders are advised to continue with their long positions with a stop below 10600 on a closing basis and look for much bigger targets,” he said.
India VIX moved up by 2.94 percent at 13.64. On the options front, maximum Put OI is placed at 10,500 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,800 strikes.
We have collated top 15 data points to help you spot profitable trade
Key support and resistance level for Nifty
The Nifty closed at 10,715.5 on Monday. According to Pivot charts, key support level is placed at 10,658.9, followed by 10,602.3. If the index starts moving upwards, key resistance levels to watch out are 10,748.9 and 10,782.3.
Nifty Bank
The Nifty Bank index closed at 25,852.1. The important Pivot level, which will act as crucial support for the index, is placed at 25,713.7, followed by 25,575.3. On the upside, key resistance levels are placed at 25,952.0, followed by 26,051.9.
Call Options data
In terms of open interest, the 11,000 Call option has seen the most call writing so far at 56.96 lakh contracts. This could act as a crucial resistance level for the index in the May series.
The second-highest buildup has taken place in the 10,800 Call option, which has seen 35.96 lakh contracts getting added so far. The 10,900 Call option has accumulated 33.71 lakh contracts.
There was hardly any Call writing seen.
Meanwhile, Call unwinding was seen at the strike price of 10,700, which shed 4 lakh contracts, followed by 10,800, which shed 2.08 lakh contracts, and 10,500, which shed 1 lakh contracts.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,500, in which 51.79 lakh contracts been added till date. This could be a crucial resistance level for the index in May series.
The 10,600 put option comes next, having added 40.33 lakh contracts so far, and the 10,400 put option, which has now accumulated 37.66 lakh contracts.
Put writing was seen at the strike price of 10,600, which shed 6.08 lakh contracts, followed by 10,500, which added 3.7 lakh contracts and 10,700, which added 2.31 lakh contracts.
Put unwinding was seen at the strike price of 10,400, which shed 3.36 lakh contracts, followed by 11,000, which shed 1.08 lakh contracts.
FII & DII data:
Foreign institutional investors (FIIs) sold shares worth Rs 635.24 crore, while domestic institutional investors bought shares worth Rs 1,037.23 crore in the Indian equity market, as per provisional data available on the NSE.
Bulk Deals:
BEML Limited: M/S Tata Aig Life Insurance Company Ltd bought 2,90,079 shares at Rs 1061.76 per share
PC Jeweller Ltd: QE Securities bought 30,12,604 shares at Rs 229.70 per share while Genuine Stock Brokers Pvt Ltd bought 43,05,342 shares at Rs 226.65 per share
Sunil Hitech Engineering Ltd: Moneywise Financial Services Private Ltd sold 26,45,783 shares at Rs 5.76 per share
Analyst or Board Meet/Briefings:
Apollo Tyres: The company has held an analyst meet on April 11, 2018 at 10:30 am.
Greaves Cotton: The firm will be interacting with multiple investors on May 8, 2018.
KEC International: The firm will hold analysts’ call on May 15, 2018.
Stocks in news:
ICICI Bank: Q4 net profit falls 50 percent on jump in NPAs, in line with expectation
Pfizer: Company posts Q4 net profit at Rs 104.51 crore
Firstsource: Q4 net profit rises to Rs 92.8 crore
Axis Bank: The lender has allotted 28,260 shares of Rs 2 each under the ESOP scheme.
Balrampur Chini: The Board will meet on May 19, 2018 to discuss the financial results.
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5 stocks under ban period on NSE
Security in ban period for the next day’s trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For May 8, 2018 stocks such as Balrampur Chini, IRB, Jet Airways, Just Dial and Wockhardt are present in this list.
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