Traders should not hurry in creating long at the current juncture as long as Nifty trades below its 200-DEMA. A close above 10,200 could signal some short-term strength in the index.
Bears ruled the D-Street for the third consecutive day in a row and pushed the Nifty below its crucial long-term moving an average of 200-DEMA for the first time on Monday for the first time since November 2016. The Nifty has also registered its fresh low for the year 2018 as it made a strong bear candle.
The Nifty which opened with a positive bias failed to hold on to the momentum as bears took control of D-Street as it reclaimed 10,200 levels. The index slipped below its crucial 200-DEMA placed around 10,114 and now a closed below 10,000 could take Nifty towards 9700.
Traders should not hurry in creating long at the current juncture as long as Nifty trades below its 200-DEMA. A close above 10,200 could signal some short-term strength in the index.
The Nifty which opened at 10,215 rose to an intraday high of 10,224 before bears took control of D-Street. The index hit an intraday low of 10,075 before closing the day at 10,094, down 100.90 points or 0.99 percent.
“Bears continued their domination on the bourses for the third session in a row as they bruised and battered the bulls with a robust bear candle and a wide margin of 1 to 5 advance-decline ratio which was never witnessed in recent times,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol News.
“It is critical for the bulls to witness stability in banking index which may curtail more downsides for Nifty50. On the other hand, if Bank Nifty also succumbs to the selling pressure then selling in Nifty50 stocks may get accelerated further,” he said.
Mohammad further added that 10040 – 9980 appears to be a critical support point for Nifty50 from where a bounce can be expected. For any reason, if indices close below the psychologically important mark of 10,000 then traders should look for bigger targets of 9700 on the downside.
Meanwhile, a close above 10200 levels may suggest some short-term strength to the indices.
India VIX moved up by 3.9 percent at 15.81. A rise in volatility for the second consecutive sessions has given an upper hand to bears and suggesting more weakness as Put Call Ratio also falling down from higher levels.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,094.2 on Monday. According to Pivot charts, the key support level is placed at 10,038.17, followed by 9,982.13. If the index starts moving upwards, key resistance levels to watch out are 10,187.37 and 10,280.53.
Nifty Bank
The Nifty Bank index closed at 24,245.1 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,091.97, followed by 23,938.83. On the upside, key resistance levels are placed at 24,493.17, followed by 24,741.23.
Call Options data
In terms of open interest, the 10,500 call option has seen the most call writing so far at 66.28 lakh contracts. This could act as a crucial resistance level for the index in the March series.
The second-highest buildup has taken place in the 10,400 Call option, which has seen 58.45 lakh contracts getting written so far. The 10,300 Call option has accumulated 42.85 lakh contracts.
During the session, Call writing was most seen at the strike price of 10,200, which saw an addition of 13.76 lakh contracts, followed by 10,100, in which 10.16 lakh contracts were added, and 10,400, in which 9.63 lakh contracts were added.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,000, in which 66.46 lakh contracts have been added till date. This will act as a crucial base for the index in the March series.
The 10,100 put option comes next, having added 42.77 lakh contracts so far, and the 10,200 put option, which has now accumulated 32.63 lakh contracts.
During the session, put writing was seen the most at a strike price of 10,000, with 20.09 lakh contracts being added, followed by 10,100, which added 9.29 lakh contracts, and 9,900, which added 3.01 lakh contracts.
Put unwinding was seen at a strike price of 10,200, in which 7.14 lakh contracts were shed, followed by 10,300, in which 6.89 lakh contracts were shed. The 10,400 put option saw 2.40 lakh contracts getting shed.
FII & DII data:
Foreign institutional investors (FIIs) bought shares worth Rs 292.23 crore, while domestic institutional investors sold shares worth Rs 191.52 crore in the Indian equity market, as per provisional data available on the NSE.
Bulk Deals:
Compuage Infocom Ltd: Saajan Subhas Rathod sold 3,11,324 shares at Rs 40.85 per share
Kothari Petrochem Ltd: KSR Chemicals and Fortune Trading Private Limited sold 5,41,000 shares at Rs 23.85 per share
Sintercom India Limited: India Max Investment Fund Ltd. sold 8,00,000 shares at Rs 73.97 per share
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Endurance Technologies: A one-on-one meeting has been scheduled with Axis Mutual Fund by the firm has been scheduled for March 20, 2018.
Shriram City: Tata AMC, LGM Investments, CLSA India, and Nomura will be meeting the management between March 20 and March 23, 2018.
Sadbhav Engineering: The company will be attending Equirus’ Infrastructure and Industrial Day on March 20, 2018.
Stocks in news:
Future Consumer: The company has redeemed 600 redeemable NCDs to the tune of Rs 60 crore on March 16, 2018.
Capacite Infra: The firm has bagged a contract worth Rs 256.6 crore in Varanasi.
ITC: The Supreme Court has upheld sale of Park Hyatt Goa to ITC, reports Mint.
IRB Infra: The company has bagged a road project worth Rs 2,043 crore from NHAI in Gujarat, reports PTI.
Suzlon: The company has bagged 500 MW wind energy projects through SECI bids.
Reliance Communications: SC to hear case against Bombay High Court order
Canara Bank: CBI files FIR against Former MD and Executive Directors in a fraud case
Seven 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.
Securities which are banned for trading include names such as BEML, DHFL, HDIL, IDBI, JP Associates, Reliance Communications, and SAIL.
