"Closing above 11,050 will add further strength to the ongoing (up) trend and open gates for much higher levels," said Sahaj Agrawal, DVP – Derivatives, Kotak Securities.
On December 12, a day after results of state elections were announced and the new RBI Governor was appointed, the Sensex surged over 600 points.
The 30-share BSE Sensex rallied 629.06 points or 1.79 percent to 35,779.07 while the Nifty50 climbed 188.40 points or 1.79 percent to 10,737.60, recouping around 400 points from its major support of 10,333 levels.
The index formed robust bullish candle on the daily charts for the second consecutive session.
After the sharp rally, the index is likely to cross 10,800 levels in coming session but there could be profit booking at same levels, experts said, adding in next couple of weeks, it may hit psychological 11,000 levels.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol that as Nifty50 almost rallied around 4 percent in last two sessions it can undergo some profit booking in next one or two sessions.
Sustaining above 10,752 levels, considering the strength with which it is moving, next targets can be projected around 10,819 kind of levels, he said. On correction 10,600 can be a good opportunity to create fresh longs with a stop below 10,560 kind of levels, according to him.
Sahaj Agrawal, DVP – Derivatives, Kotak Securities said going forward, he believes 11,050 should be tested in this month and 10,300 should act as a base.
Closing above 11,050 will add further strength to the ongoing (up) trend and open gates for much higher levels, he added.
The broader markets continued to outperform frontliners with the Nifty Midcap rising 2.64 percent and Smallcap 3 percent). Even the buying was seen across sectors with Bank, Auto, FMCG, IT, Metal and Realty indices gaining 1-4 percent.
India VIX fell sharply by 11.90 percent to 15.81 levels. It has seen a sharp cut of 22.65 percent in last two sessions which suggests that now bulls are getting a grip on the market with the expectation of limited downside.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,737.60 on December 12. According to Pivot charts, the key support level is placed at 10,614.87, followed by 10,492.13. If the index starts moving upward, key resistance levels to watch out are 10,806.27 and then 10,874.93.
The Nifty Bank index closed at 26,643.85, up 480.45 points on December 12. The important Pivot level, which will act as crucial support for the index, is placed at 26,348.16, followed by 26,052.53. On the upside, key resistance levels are placed at 26,806.06, followed by 26,968.33.
Call Options Data
Maximum Call open interest (OI) of 43.53 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the December series.
This was followed by the 10,800 strike price, which now holds 29.65 lakh contracts in open interest, and 10,900, which has accumulated 25.04 lakh contracts in open interest.
Meaningful Call writing was seen at 10,800, which added 2.41 lakh contracts.
Call unwinding was seen at 11,000 strike, which shed 6.35 lakh contracts, followed by 10,500 strike which shed 5.74 lakh contracts and 10,600 strike which shed 5.44 lakh contracts.
Put Options data
Maximum Put open interest of 42.95 lakh contracts was seen at the 10,200 strike price. This will act as a crucial support level for the December series.
This was followed by the 10,500 strike price, which now holds 39.18 lakh contracts in open interest, and the 10,400 strike price, which has now accumulated 28.39 lakh contracts in open interest.
Put writing was seen at the strike price of 10,600, which added 11.81 lakh contracts, followed by 10,700 strike which added 7.38 lakh contracts, and 10,500 which added 4.52 lakh contracts.
Put unwinding was seen at the strike of 10,200, which shed 6.33 lakh contracts, followed by 11,000 which shed 2.08 lakh contracts and 10,300 which shed 0.63 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 1,299.43 crore while Domestic Institutional Investors bought Rs 1,121.29 crore worth of shares in the Indian equity market on December 12, as per provisional data available on the NSE.
Fund Flow Picture
Stocks with high delivery percentage
High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.
103 stocks saw a long buildup
85 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
12 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.
3 stocks saw long unwinding
Bulk Deals on December 12
Rolta India: Central Bank of India (capital market service branch) sold 20 lakh shares of the company at Rs 10.07 per share on the NSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Eicher Motors: Company's officials will be meeting India Nivesh Institutional and Cadence Investment on December 13, and Systematix and Sundaram Mutual Fund on December 14.
Scan Steels: Board meeting is scheduled on December 18 to consider the matter in respect of listing of equity shares of the company with the National Exchange Limited.
Gulf Oil Lubricants India: Company's officials will be meeting analysts/investors on December 13.
CRISIL: Company's official will be meeting ICICI Prudential Life Insurance Company, SBI Mutual Fund, Reliance Mutual Fund, Goldman Sachs and HDFC Standard Life Insurance Company Limited on December 13.
KEI Industries: Company's officials will be meeting Nirmal Bang Equities Private Limited on December 14.
Bank of Baroda: Capital Raising Committee is scheduled to be held on December 17 to consider raising of funds through Basel III compliant Tier II bonds, for size and amount.
Ashoka Buildcon: Board meeting is scheduled on December 17 to consider the raising of funds by issue of debt security in the form of non-convertible debentures (NCDs) on private placement basis.
Asian Paints: Company through its representatives will be meeting the Investment Research team of Citi Bank on December 13.
PSP Projects: Company's officials will be meeting analysts/institutional investors on December 13 and 17.
Music Broadcast: Board meeting is scheduled on December 31 to consider the sub-division of equity shares of the company.
Virinchi: Officials of the company will be meeting investors and analysts (participants), at Ahmedabad on December 13.
Mahindra Holidays & Resorts India: Company's officials will be meeting HDFC Asset Management Company and Edelweiss Securities Limited on December 14.
Mahindra Logistics: Company's officials will be meeting Ashmore Capital on December 24.
Stocks in news
Jubilant Foodworks: Company has been allotted 51 lakh ordinary equity shares at a par value of BDT 10 (Bangladesh Taka Ten) each, in Jubilant Golden Harvest Limited (JV company). Subsequent to the allotment, company has become 51 percent shareholder in the JV company.
Pricol: Company and Nasdaq-listed Pointer Telocation signed letter of intent to form a joint venture to provide advanced telematics and IoT solutions in India and other countries in South East Asia.
MPS: Directors of the company has decided to withdraw the proposed Scheme of Amalgamation of ADI BPO Services Limited with MP5 Limited and appointment of Sunil Shah as Additional Director of the company.
Rollatainers: Sanjiv Bhasin, Director has resigned from the board and all committees of board, due to personal and unavoidable circumstances.
2 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.For December 13, 2018, Adani Enterprises and Adani Power are present in this list.