After a sharp run in the week gone by, the market is expected to be rangebound in coming sessions and traders will closely watch RBI monetary policy event scheduled on June 6, experts said
The landslide victory of National Democratic Alliance (NDA) helped the market end at record closing high in the week ended May 24, gaining nearly 4 percent. The rally was driven mainly by banking and financials, auto, infra and energy stocks.
The BSE Sensex climbed 623.33 points to 39,434.72 while the Nifty50 rose 187.10 points to 11,844.10 on May 24 and formed bullish candle on weekly charts.
After a sharp run in the week gone by, the market is expected to be rangebound in coming sessions and traders will closely watch RBI monetary policy event scheduled on June 6, experts said.
"The Nifty during previous week witnessed faster retracement of April-May fall (11,856-11,108) by rallying over 900 points in just eight sessions. The faster retracement signifies a structural turnaround that makes us confident for upmove towards 12,200 in coming weeks as it is the 138.2 percent external retracement of April–May decline placed at 12,142," Dharmesh Shah, Head – Technical, ICICI direct told Moneycontrol.
"Nifty's 5-week SMA is rising and placed around 11,611 that implies weakness is only below crucial support of 11,611; till then one should opt for buy-on-dip strategy," Shabbir Kayyumi, Head of Technical & Derivative Research at Narnolia Financial Advisors said .
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,844.10 on May 24. According to the Pivot charts, the key support level is placed at 11,715.13, followed by 11,586.17. If the index starts moving upward, key resistance levels to watch out are 11,916.03 and 11,987.97.
The Nifty Bank index closed at 31,212.55, up 803.45 points on May 24. The important Pivot level, which will act as crucial support for the index, is placed at 30,759.53, followed by 30,306.47. On the upside, key resistance levels are placed at 31,470.53, followed by 31,728.47.
Call options data
Maximum Call open interest (OI) of 47.16 lakh contracts was seen at the 12,500 strike price. This will act as a crucial resistance level for the May series.
This was followed by 12,000 strike price, which now holds 36.91 lakh contracts in open interest, and 12,200, which has accumulated 22.84 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 12,100, which added 3.04 lakh contracts.
Call unwinding was seen at the strike price of 12,000, which shed 10.82 lakh contracts, followed by 12,500 strike price that shed 10.13 lakh contracts.
Put options data
Maximum Put open interest of 27.47 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the May series.
This was followed by 11,700 strike price, which now holds 26.43 lakh contracts in open interest and 11,600 strike price, which has now accumulated 17.62 lakh contracts in open interest.
Put writing was seen at the strike price of 11,700, which added 10.71 lakh contracts, followed by 11,600 strike price that added 7.08 lakh contracts and 11,400 strike price that added 5.94 lakh contracts.
Put unwinding was seen at the strike price of 12,000, which shed 0.69 lakh contracts, followed by 11,100 strike price that shed 0.54 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.
120 stocks saw a long buildup
55 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
16 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
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FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth net Rs 2,026.33 crore while Domestic Institutional Investors (DIIs) sold net Rs 195.35 crore worth of shares in the Indian equity market on May 24, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in news
Results on May 24: More than 280 companies will release their March quarter earnings report.
NTPC Q4: Profit up 48.7 percent at Rs 4,350.2 crore versus Rs 2,925.6 crore; revenue down 8 percent at Rs 21,222.4 crore versus Rs 23,100.3 crore (YoY).
Suven Life Sciences Q4: Profit up 8.6 percent at Rs 67.9 crore versus Rs 62.5 crore; revenue up 18.5 percent at Rs 253.3 crore versus Rs 213.7 crore (YoY).
BEML Q4: Profit up 3.5 percent at Rs 229.7 crore versus Rs 222 crore; revenue up 9.3 percent at Rs 1,368.5 crore versus Rs 1,252.6 crore (YoY).
Divi's Lab Q4: Profit up 10.6 percent at Rs 289.3 crore versus Rs 261.6 crore; revenue up 15.5 percent at Rs 1,256.4 crore versus Rs 1,087.9 crore (YoY).
India Cements Q4: Profit up 24.4 percent at Rs 43.8 crore versus Rs 35.2 crore; revenue up 11.9 percent at Rs 1,564 crore versus Rs 1,397.8 crore (YoY).
Narayana Hrudayalaya Q4: Consolidated profit at Rs 37 crore versus Rs 9.8 crore; consolidated revenue up 18.3 percent at Rs 765.2 crore versus Rs 646.7 crore (YoY).
Indraprastha Gas Q4: Profit up 14 percent at Rs 225.5 crore versus Rs 198 crore; revenue up 2.2 percent at Rs 1,543.5 crore versus Rs 1,510.3 crore (QoQ).
Jindal Stainless (Hisar) Q4: Profit down 31.7 percent at Rs 65.6 crore versus Rs 96 crore; revenue up 4.7 percent at Rs 2,360.6 crore versus Rs 2,253.7 crore (YoY)
Dixon Technologies Q4: Consolidated profit up 17.9 percent at Rs 16.5 crore versus Rs 14 crore; revenue up 43.6 percent at Rs 858.2 crore versus Rs 597.8 crore (YoY).
IDFC Q4: Loss at Rs 25.9 crore versus profit of Rs 31.3 crore; revenue at Rs 1.5 crore versus Rs 41.8 crore (YoY).
Dish TV Q4: Loss at Rs 1,361.3 crore versus profit of Rs 118 crore (One-time loss at Rs 1,562.5 crore on account of impairment charges); revenue down 8.7 percent at Rs 1,398.8 crore versus Rs 1,532.4 crore (YoY).
Birlasoft Q4: Consolidated profit up 1.5 percent at Rs 66 crore versus Rs 65 crore (one-time gain at Rs 17.5 crore); consolidated revenue up 40 percent at Rs 788.2 crore versus Rs 563.6 crore (QoQ).
Coffee Day Enterprises Q4: Profit down 17 percent at Rs 28.8 crore versus Rs 34.7 crore; revenue up 17 percent at Rs 1,322.2 crore versus Rs 1,130.3 crore (YoY).
NCC Q4: Profit up 69.8 percent at Rs 174.4 crore versus Rs 103 crore; revenue up 41.5 percent at Rs 3,388.9 crore versus Rs 2,394.8 crore (YoY).
Bata India Q4: Profit up 69.3 percent at Rs 88.2 crore versus Rs 52.1 crore; revenue up 7.4 percent at Rs 679.3 crore versus Rs 632.3 crore (YoY).
Page Industries Q4: Profit down 20.4 percent at Rs 75 crore versus Rs 94.2 crore; revenue down 0.1 percent at Rs 607.8 crore versus Rs 608.4 crore (YoY).
Grasim Industries Q4: Standalone profit up 20.9 percent at Rs 451.2 crore versus Rs 373.1 crore; standalone revenue up 16.1 percent at Rs 5,352.3 crore versus Rs 4,611.7 crore (YoY).
PNC Infratech Q4: Profit up 25.5 percent at Rs 139.9 crore versus Rs 111.5 crore; revenue up 41.8 percent at Rs 1,075.7 crore versus Rs 758.8 crore (YoY).
Future Retail Q4: Profit at Rs 203 crore versus loss of Rs 463.6 crore; revenue up 18 percent at Rs 5,396.6 crore versus Rs 4,574.6 crore (YoY).
NIIT Q4: Consolidated profit up 17.3 percent at Rs 23 crore versus Rs 19.6 crore; consolidated revenue up 7.6 percent at Rs 239.7 crore versus Rs 222.8 crore (YoY)
NIIT Tech: Promoter Hulst BV created pledge on 32.38 percent stake on May 17.
Manpasand Beverages: Top management arrested in an alleged invoice GST fraud.
Analyst or Board Meet/Briefings
Coromandel International: Company's officials will meet Axis Capital on May 27 and Batlivala & Karani Securities India on May 29.
Omax Autos: Board meeting to be held to consider March quarter earnings on May 30.
Reliance Home Finance: Board meeting to be held to consider March quarter earnings on June 28.
Reliance Capital: Board meeting to be held to consider March quarter earnings on June 28.
IDFC: Company will hold investor/analysts call on May 31, to comment on the annual audited financial results.
L&T Finance Holdings: Board meeting is scheduled to be held on May 29 to approve raising of funds through proposed issue.
Royal Orchid Hotels: Board meeting is scheduled to be held on May 29 to consider recommendation of final dividend on equity shares for the financial year ended March 2019.
Syngene International: Company's officials will participate in PhillipCapital India - Annual Investor Conference on May 27.
Orchid Pharma: Board meeting to be held on May 31 to consider March quarter earnings.
Mindtree: Company's officials will participate in Phillip Capital (India) Annual Ground View Conference on May 28 and B&K Securities Investor Conference on May 29.
Two stocks under ban period on NSE
For May 27, Adani Power and IDBI Bank are under a ban period.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.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.