The positive momentum continued for the fifth session in a row as bulls remained in a strong position at Dalal Street on October 7. Rising expectations of better Q2 earnings and hopes of stimulus could be supporting the market.
The Sensex ended up 304.38 points at 39,878.95 and the Nifty climbed 76.50 points at 11,738.90, the highest closing level since February 25, forming a bullish candle on the daily charts.
"Nifty sustained higher after the upside breakout of the initial hurdle at 11,550. It is then tried to move above the next important swing high of 11,795. This could be an indication of strength of bulls to surpass the hurdles. Hence, the upper hurdle of 11,800 could be taken out soon," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
"Nifty sustaining above the next key reversal pattern -- Bearish Engulfing -- on the daily and weekly chart at 11,795 is expected to be an important signal of negation of the bearish pattern. Such negations tend to act as an uptrend continuation pattern. In such a scenario, the market could reach up to upper 12,250 levels in a short period of time," he said.
The broader markets underperformed frontliners with the Nifty Midcap index falling half a percent and Smallcap down a third of a percent.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three- month data and not of the current month only.Key support and resistance levels on the Nifty
This is followed by 12,500, which holds 18.06 lakh contracts, and 11,800 strikes, which has accumulated 12.14 lakh contracts.
Call writing was seen at 12,300, which added 1.12 lakh contracts, followed by 12,100 and 12,200 strikes, which added 1.06 lakh contracts each.
Call unwinding was seen at 11,600, which shed 1.33 lakh contracts, followed by 11,500, which shed 97,575 contracts and 11,100 strikes, which shed 93,750 contracts.
Put option data
This is followed by 11,300, which holds 18.40 lakh contracts, and 11,500 strikes, which has accumulated 18.05 lakh contracts.
Put writing was seen at 11,700, which added 4.32 lakh contracts, followed by 11,500, which added 3.15 lakh contracts, and 11,300 strikes, which added 2.63 lakh contracts.
Put unwinding was witnessed at 11,200, which shed 1.92 lakh contracts, followed by 12,100 strikes, which shed 2,625 contracts.
Stocks with a high delivery percentage
27 stocks saw long build-up
32 stocks saw long unwinding
45 stocks saw short build-up
(For more bulk deals, click here)Results on October 8
Wipro: Board to consider buyback proposal on October 13.
RBL Bank: Deposits in Q2 FY21 grew 5 percent QoQ and 3 percent YoY. Gross advances declined 3 percent YoY and 1 percent QoQ, while retail advances grew 23 percent YoY and 7 percent QoQ. CASA ratio at 31.1 percent in Q2 FY21 against 30.1 percent QoQ and 26.5 percent YoY.
Nilkamal: CARE reaffirmed credit rating on company's long-term bank facilities at AA/Stable.
Shriram City Union Finance: CARE revised credit rating on company's NCDs to AA/Stable, from AA+/Negative.
Delta Corp closed its share buyback.
Ujaas Energy: CRISIL has downgraded its long-term rating on the bank facilities of company to 'D' from 'B-/Negative.Fund flow