One more follow up closing above 11,330 and 5 EMA will confirm the reversal of the trend at least in the short term, says Shabbir Kayyumi of Narnolia Financial Advisors.
Benchmark indices closed near the day's high level helped by late buying on May 16. Nifty finished above 11,250 level with the support of metal, IT and energy stocks.
At close, the Sensex was 278.60 points at 37,393.48, while Nifty was up 100.10 points at 11,257.10. About 1,155 shares advanced, 1,296 shares declined, and 149 shares were unchanged.
Zee Entertainment, BPCL, UltraTech Cement, IOC and Bajaj Finance were among major gainers on the Nifty, while losers were Yes Bank, Bharti Airtel, IndusInd Bank, Coal India and Cipla.
Except for pharma, all other sectoral indices ended higher led by IT, metal, energy, bank, auto, FMCG and infra.
On account of options expiry, Nifty rose higher towards 5 EMA placed around 11,280 levels. The index has formed a long body bullish candlestick pattern whereas a close is near to high and low is greater than the previous day’s low suggesting strong support on the lower side, said Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors.
One more follow-up closing above 11,330 and 5 EMA will confirm the reversal of the trend at least in the short term. Also, on Friday market would close in a manner so that it is ready for the outcome of the exit poll on Sunday. Technically the range of the market is 11,330 on higher side and 11,100 on the lower side, he added.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,257.10 on May 16. According to the Pivot charts, the key support level is placed at 11,173.1, followed by 11,089.1. If the index starts moving upward, key resistance levels to watch out are 11,311.3 and 11,365.5.
The Nifty Bank index closed at 28,855.3, up 238.85 points on May 16. The important Pivot level, which will act as crucial support for the index, is placed at 28,604.6, followed by 28,353.9. On the upside, key resistance levels are placed at 29,026.8, followed by 29,198.3.
Call options data
Maximum Call open interest (OI) of 14.59 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the May series.
This was followed by 11,700 strike price, which now holds 14.49 lakh contracts in open interest, and 11,800, which has accumulated 14.46 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,200, which added 2.71 lakh contracts, followed by 11,500 strike price that added 2.63 lakh contracts and 11,800 strike price that added 2.13 lakh contracts.
There was no Call unwinding seen.
Put options data
Maximum Put open interest of 29.73 lakh contracts was seen at 11,000 strike price. This will act as a crucial support level for the May series.
This was followed by 11,500 strike price, which now holds 16.61 lakh contracts in open interest and 11,700 strike price, which has now accumulated 11.13 lakh contracts in open interest.
Put writing was seen at the strike price of 11,500 which added 1.79 lakh contracts, followed by 11,200 strike price that added 1.41 lakh contracts and 11,000 strike price that added 1.01 lakh contracts.
Put unwinding was seen at the strike price of 11,800 that shed 1.54 lakh contracts, followed by 10,700 strike that shed 0.43 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.
111 stocks saw a long buildup
28 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
51 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.
6 stocks saw long unwinding
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 953.23 crore while Domestic Institutional Investors (DIIs) bought Rs 948 crore worth of shares in the Indian equity market on May 8, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in the news:
Results Today: Bajaj Auto, Dr. Reddy's Laboratories, IOC, Ajmera Realty, Allsec Technologies, Arvind, Bajaj Holdings, Balkrishna Industries, CESC, Corporation Bank, Engineers India, Jubilant Life Sciences, Sical Logistics, Sobha, UPL, Zee Learn
ICRA has re-affirmed the long-term rating as A- and short-term credit ratings as A2+ for bank facilities of Kothari Petrochemicals
Manappuram Finance approve to acquire 100% equity shares of Manappuram Asset Finance for Rs 34.21 crore
L&T to raise up to Rs 2000 crore via NCDs on private placement basis
PNB terminates sale of housing arm to Varde Holdings Pte and General Atlantic Group
Analyst or Board Meet/Briefings
Rolta India: Board meeting on May 24 to consider and approve the financial results for the period ended March 31, 2019
JBM Auto: Board meeting on May 28 to consider and approve the financial results for the period ended March 31, 2019 and dividend
Quess Corp: Board meeting on May 22 to consider and approve, inter-alia, the audited (standalone and consolidated) financial results of the Company for the quarter and financial year ended March 31, 2019
Ashoka Buildcon: Board meeting on May 22 to consider and approve the financial results for the period ended March 31, 2019 and fund raising.
One stock under ban period on NSEFor May 17, Jet Airways is a security under ban. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.