Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said the bearish potential remains intact unless the hurdle zone of 12,000-12,041 is crossed
After a volatile session, indices closed marginally in red on May 31. However, during the week, it gained on hopes of big bang reforms from the newly formed Modi government.
Nifty fell 23.10 points to 11,922.80 after Modi government allocated cabinet portfolio on May 31, forming bearish candle on daily charts while for the week, the index gained 0.66 percent and formed small bullish candle on the weekly scale. For May, the index gained 1.5 percent.
Experts said that unless 12,041—the record high that Nifty hit during election result week—is crossed, sharp upside momentum won't be possible in the near term.
"Though Nifty fell on May 31, there is no indications of any significant reversal pattern as per smaller timeframe chart. The buying is still emerging near the supports," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
He said the formation of upper shadow around 12,040 in the last couple of weeks signals an emergence of selling pressure near the new highs; this pattern could possibly result in a minor weakness or a range movement for the next week.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas also said the bearish potential remains intact unless the hurdle zone of 12,000-12,041 is crossed.
Among sectors, all indices closed in the red barring IT that gained a percent. Nifty Midcap index fell 0.2 percent and Smallcap index lost 1.2 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,922.80 on May 31. According to the Pivot charts, the key support level is placed at 11,821.8, followed by 11,720.8. If the index starts moving upward, key resistance levels to watch out are 12,031.5 and 12,140.2.
The Nifty Bank index closed at 31,375.40, down 161.70 points on May 31. The important Pivot level, which will act as crucial support for the index, is placed at 30,737.8, followed by 30,100.2. On the upside, key resistance levels are placed at 31,898.3, followed by 32,421.2.
Call options data
Maximum Call open interest (OI) of 17.10 lakh contracts was seen at the 12,500 strike price. This will act as a crucial resistance level for the June series.
This is followed by 12,000 strike price, which now holds 14.30 lakh contracts in open interest, and 12,200, which has accumulated 9.26 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 12,200 which added 2.16 lakh contracts, followed by 11,900 strike price that added 2.05 lakh contracts and 12,500 strike price that added 1.67 lakh contracts.
There was hardly any Call unwinding seen.
Put options data
Maximum Put open interest of 23.37 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the June series.
This was followed by 11,700 strike price, which now holds 16 lakh contracts in open interest and 12,000 strike price, which has now accumulated 11.51 lakh contracts in open interest.
Put writing was seen at the strike price of 11,700, which added 3.48 lakh contracts, followed by 11,800 strike price that added 3.31 lakh contracts.
Put unwinding was seen at the strike price of 12,000, which shed 1.33 lakh contracts, followed by 12,500 strike price 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.
36 stocks saw a long buildup
25 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
79 stocks saw a short build-upAn increase in open interest along with a decrease in price mostly indicates a build-up of short positions.
57 stocks saw long unwinding
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth net Rs 676.15 crore and Domestic Institutional Investors (DIIs) purchased Rs 394.09 crore worth of shares in the Indian equity market on May 31, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in news
Eicher Motors: Company's JV with Volvo Group, VE Commercial Vehicle sold 870 units in May 2019, down 37.6 percent against 1,395 units sold in the same month last year.
Escorts: Agri machinery segment sold 6,827 tractors in May, down by 18 percent against 8,325 tractors sold in May 2018. Domestic tractor sales down 19.8 percent to 6,488 tractors and exports grow 42.4 percent to 339 tractors YoY.
Atul Auto: Company sold 3,464 vehicles in May 2019, lower by 13 percent against 3,983 vehicles sold in May 2018.
SML Isuzu: Company sold 1,689 vehicles in May, higher by 17 percent over 1,442 vehicles sold in same month last year.
Dilip Buildcon: Company executed an EPC agreement with the National Highways Authority of India for Saoner-Dhapewada-Kalmeshwar-Gondkhairi, NH-547E, Package -II on EPC mode in Maharashtra.
NTPC: Unit-1 of 800 MW of Gadarwara Super Thermal Power Station (2 x 800 MW) has started its commercial operation. With this, the commercial capacity of Gadarwara Super Thermal Power Station, NTPC and NTPC group has become 800 MW, 46,525 MW and 54,326 MW, respectively.
Tata Steel BSL: NCLT approved the resolution plan submitted by Tata Steel for acquiring the controlling stake in Bhushan Energy (BEL).
Vaibhav Global: Company approved proposal to buyback 7.2 lakh fully paid-up equity shares, at a price up to Rs 1,000 per share, for an aggregate amount up to Rs 72 crore.NLC India: NLC India achieved yet another major milestone activity by lighting up the boiler of the second unit of the upcoming 2 x 500 MW
lignite-fired Neyveli New Thermal Power Project (NNTPP).
Biocon: Board fixed June 13 as the record date to determine eligible shareholders entitled to receive the bonus shares.
Seamec: Virendra Kumar Gupta, President and Chief Financial Officer resigned from the services of the company due to personal reasons.
Kwality Q4: Loss at Rs 497.55 crore versus profit Rs 1.29 crore; revenue falls to Rs 113.65 crore versus Rs 1,709 crore YoY.UltraTech Cement: Company is proposing to issue unsecured redeemable non-convertible debentures (NCDs) amounting to Rs 250 crore on
private placement basis.
Ashapura Minechem: Rajnikant Pajwani resigned as Chief Executive Officer of the company.
Arshiya: Santosh Maheshwari resigned as Group President and Chief Financial Officer.
Shri Dinesh Mills: Company discontinued manufacturing of woolen & worsted fabrics at Ankleshwar and Vadodara units.
CIMMCO: Vineet Mohta resigned as Chief Financial Officer of the company due to personal reasons.
TVS Electronics: Karthi Chandramouli resigned as Chief Financial Officer (key managerial personnel) of the company.
NGL Fine-Chem: Company has received SME 1 rating from CRISIL, which indicates the highest creditworthiness and considered to have an adequate degree of safety regarding timely servicing of financial obligations.
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Analyst or Board Meet/Briefings
TCS: Annual General Meeting to be held on June 13.
Eicher Motors: Company has scheduled an Investor meet at its UK Technology Centre, Bruntingthorpe on June 4.
Havells India: Management will be participating in the investor conferences organised by Citi Research on June 3, UBS Securities India on June 7 and Morgan Stanley on June 12.
Lemon Tree Hotels: Management is scheduled to meet institutional investors at London, UK from June 2-4 and New York, US from June 5-6 at India Access Days investor meet, organised by CLSA.
M&M: Company's officials will meet several funds/investors/analysts in Mumbai on June 3.
Neogen Chemicals: Company's officials will meet analysts/institutional investors on June 3 and 4.
Garden Reach Shipbuilders & Engineers: Analyst meeting is scheduled to be held on June 6 to discuss the financial results.
Camlin Fine Sciences: Senior management team of the company will be meeting various international investor and analyst from June 3-6.
Godawari Power & Ispat: Company will be meeting a group of investors and analysts on June 3 in Mumbai.
Orchid Pharma: Board meeting is scheduled on June 3 to consider audited financial results for the financial year ended March 31, 2019.
No stock under F&O ban period on NSE
For June 3, not a single stock is 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.