Maximum call open interest (OI) of 52.38 lakh contracts stands at strike price 10,600, which will be a resistance for February series.
The Nifty50 which started with a slight gap on the higher side on Friday failed to keep the momentum going as bears took control of D-Street in the second half of the trading session. The index made a bearish candle or a bearish engulfing candle type of pattern.
A bearish engulfing candle is a two-candlestick pattern which signifies that the index may be losing its current momentum. It is a pattern which consists of a small candlestick followed a big red candle which engulfs the trading range of the previous candle.
However, in Friday’s session, the intraday high of the previous trading session was slightly more than the intraday high registered on Friday. Hence, it is not an exact engulfing pattern.
The Nifty50 is now trading below its key short-term moving averages such as 5-day exponential moving average (DEMA) followed by 50-DEMA. The index consolidated throughout this week, a pattern which is likely to continue in the coming week as well unless it breaks above 10,600.
Hence, some bit of volatility in the coming week cannot be ruled out. The index has strong support near 10,270 levels. But, even a close below 10,398 could fuel more selling on D-Street.
The Nifty50 which opened at 10,596 rose to an intraday high of 10,612. It slipped more than 170 points from intraday high to hit a low of 10,434. It closed 93 points lower at 10,452 on Friday.
"As long as Nifty50 remains inside the trading range of 10,600–10,398 levels there will be a higher possibility of a sideways move within the said range. In the current consolidation phase of 7-day there are almost three such strong bearish candles which failed to attract follow-through sell-off, hence traders should not pre-empt a break down unless Nifty50 closes below 10,398 levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
Mohammad said in the unfortunate event of breakdown correction shall get extended towards its 200-day moving average whose value is placed around 10,270 levels whereas upsides shall not be expected until indices close above 10,600 levels.
We have collated the top fifteen data points to help you spot profitable trade:
Key Support & Resistance Level for Nifty:
The Nifty closed at 10,452.30 on Friday. According to Pivot charts, the key support level is placed at 10,386.57, followed by 10,320.83. If the index starts to move higher, key resistance levels to watch out are 10,565.47 and 10,678.63.
The Nifty Bank closed at 25,163.90, down 1 percent. Important Pivot level, which will act as crucial support for the index, is placed at 24,976.2, followed by 24,788.5. On the upside, key resistance levels are placed at 25,476.3, followed by 25,788.7.
Call Options Data:
Maximum call open interest (OI) of 52.38 lakh contracts stands at strike price 10,600, which will be a resistance for the February series, followed by 11,000, which now holds 48.98 lakh contracts in open interest, and 10,500, which has accumulated 47.10 lakh contracts in OI.
Call writing was seen at the strike price of 10,600, which saw the addition of 16.79 lakh contracts, followed by 10,500 which added 16.51 lakh contracts and 10,700 which added 5.9 lakh contracts.
Call unwinding was seen at the strike of 10,900, which shed 0.98 lakh contracts, along with 11,000, which shed 0.97 lakh contracts.
Put Options Data:
Maximum put OI of 55.67 lakh contracts was seen at strike price 10,500, which will act as a crucial base for February series, followed by 10,000, which now holds 46.31 lakh contracts and 10,400 which has now accumulated 40.84 lakh contracts in open interest.
Maximum Put writing was seen at the strike price of 10,300, which saw the addition of 1.74 lakh contracts, followed by 10,400, which added 0.56 lakh contracts.
Put unwinding was seen at 10,500, which shed 8.51 lakh contracts, followed by 10,600, which shed 4.86 lakh contracts and 10,000, which shed 2.17 lakh contracts.
FII & DII Data:
Foreign institutional investors (FIIs) have net sold shares worth Rs 1,065.99 crore while domestic institutional investors (DIIs) bought shares worth Rs 1,127.78 crore in the Indian equity market on Friday, as per provisional data available on the NSE.
Fund Flow Picture:
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on the stock.
7 stocks saw long build-up:
38 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
73 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates short positions being built up.
94 stocks saw long unwinding:
Long unwinding happens when there is a decrease in OI as well as in price.
Fortis Healthcare Limited: ECL Finance Ltd sold 104,34,395 shares at Rs 136.25 per share while IDBI Trusteeship Services Ltd sold 77,78,000 shares at Rs134.91 per share.
Sintercom India Limited: KIFS International LLP bought 3,88,000 shares at Rs 76.85 per share.
(For more bulk deals click here)
Analyst or Board Meets/Briefings:
Corporation Bank: An Extraordinary General Meeting of the shareholders of the Bank which will be held on Tuesday, the 13 th March 2018 at Mangaluru for the approval of issuance of equity shares on preferential basis to Government of India to the tune of Rs 2187 crore.
Advanced Enzyme Technologies: A meeting of Board of Directors of Company is scheduled to be held on February 19, 2018, at Thane to consider and approve additional investment by way of subscription and/or acquisition of Shares of the Company’s subsidiary, Advanced Enzymes (Malaysia) Sdn. Bhd.
Infibeam Incorporation: Extra Ordinary General Meeting of the members of the company will be held on March 15, 2018 at Gandhinagar
Stocks in news:
Religare: To raise funds up to Rs 1200 cr through issue of shares/convertible securities/debt
South Indian Bank: Revises MCLR, wef. February 20, 2018
KPR Mills: To consider buy back of shares on February 22
Natco Pharma: USFDA completes Inspection of Mekaguda facility with ZERO observations
Infosys: Signs agreement to divest its entire investment from OnMobile Systems for USD 2,498,756
PVR: Says ‘amicably resolved’ dispute with Elan group over development of multiplexes in Gurugram
SBI: Approved issue price at Rs 300.8/share for pref issue to the govt
ARSS Infra: Wins two work orders worth Rs 121cr
Bhushan Steel: Tata Steel has emerged as the highest bidder for the company, offering a package of Rs 35,000 crore, which is Rs 5,000 crore higher than JSW-Piramal consortium bid. Bhushan Steel has a debt of over Rs 45,000 crore.
Zee Entertainment Enterprises:The Company has fixed record date for partial redemption and payment of dividend on bonus preference shares.
KPR Mill Ltd: A meeting of Board of Directors of the Company is scheduled to be held on February 22, 2018 to consider the proposal for buy-back of the fully paid-up equity shares of the Company in accordance with the applicable provisions of the law.
Allahabad Bank: The bank has an exposure of around Rs 2,000 crore by way of Letter of Undertakings issued by Punjab National Bank to Nirav Modi.
Fortis Healthcare: SEBI has initiated investigation in the matter of the company, which has landed in a controversy over alleged regulatory lapses in transfer of funds to some promoter-linked firms and asked the company to furnish the information by February 26.
8 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.The security which are banned for trading are Balrampur Chini, Dish TV, Fortis Heaalth, GMR Infra, HDIL, JP Associates, Jain Irrigation and Oriental Bank.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .