Nagaraj Shetti of HDFC Securities said the near term uptrend status of Nifty remains intact, but the market may see a rangebound action or minor weakness in the next 1-2 sessions, before showing further upside.
Bulls lost their power in last hour of trade on March 27 with the Nifty50 closing tad below 11,450 levels on profit booking ahead of expiry of March futures & options contracts on Thursday.
The BSE Sensex fell 100.53 points to 38,132.88 while the Nifty50 declined 38.20 points to 11,445.05 and formed bearish candle on daily charts.
"A negative candle was formed on Wednesday, which has slightly overlapped the bull candle of Tuesday. Technically, this pattern is signalling a choppy trend or minor profit booking at the highs," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
He said the near term uptrend status of Nifty remains intact, but the market may see a rangebound action or minor weakness in the next 1-2 sessions, before showing further upside.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors said since index could not sustain above 11,530 levels, it has failed to take follow up support as required for the upmove which also indicates the market is progressing inside correction sell leg, which can extend towards 11,350 levels.
The Nifty Midcap and Smallcap indices outperformed frontliners, rising 0.5 percent and 1.24 percent respectively.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,445.05 on March 27. According to the Pivot charts, the key support level is placed at 11,389.93, followed by 11,334.87. If the index starts moving upward, key resistance levels to watch out are 11,523.13 and 11,601.27.
The Nifty Bank index closed at 30,019.80, up 137.65 points on March 27. The important Pivot level, which will act as crucial support for the index, is placed at 29,785.79, followed by 29,551.8. On the upside, key resistance levels are placed at 30,258.2, followed by 30,496.6.
Call Options Data
Maximum Call open interest (OI) of 35.64 lakh contracts was seen at the 11,600 strike price. This will act as a crucial resistance level for the March series.
This was followed by the 11,500 strike price, which now holds 33.96 lakh contracts in open interest, and 11,700, which has accumulated 25.51 lakh contracts in open interest.
Significant Call writing was seen at the 11,600 strike price, which added 11.24 lakh contracts, followed by 11,500 strike that added 3.97 lakh contracts and 11,700 strike which added 1.6 lakh contracts.
Call unwinding was seen at the strike price of 11,400 that shed 4.93 lakh contracts, followed by 11,100 strike that shed 2.96 lakh contracts and 11,000 strike, which shed 2.48 lakh contracts.
Put Options Data
Maximum Put open interest of 28 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for the March series.
This was followed by the 11,400 strike price, which now holds 26.55 lakh contracts in open interest, and the 11,300 strike price, which has now accumulated 21.77 lakh contracts in open interest.
Put writing was seen at the strike price of 11,600, which added 2.28 lakh contracts.
Put unwinding was seen at the strike price of 11,500, which shed 7.41 lakh contracts, followed by 11,200 strike that shed 6.11 lakh contracts and 11,300 strike that shed 4.71 lakh contracts.
FII & DII Data
Foreign Institutional Investors (FIIs) bought shares worth Rs 1,481.11 crore and Domestic Institutional Investors (DIIs) purchased Rs 134.92 crore worth of shares in the Indian equity market on March 27, as per provisional data available on the NSE.
Fund Flow Picture
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.
29 Stocks saw a long buildup
63 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
38 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.
68 stocks saw long unwinding
Bulk Deals on March 27
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Analyst or Board Meet/Briefings
Metroglobal: Board meeting is scheduled on March 30 to consider the proposal of buy-back of equity shares of the company.
Sonata Software: Company's officials will meet analysts on March 28.
Eris Lifesciences: Company's officials will meet Sundaram Mutual Fund on March 28.
Cipla: Company's officials will meet Government of Singapore Investment Corporation on March 28 in Mumbai; and Ontario Municipal Employees Retirement System (Pension Fund), Stewart Investors and Temasek International on March 29 in Singapore.
Hind Rectifiers: Company's officials will meet analysts on March 28.
Majesco: Company's officials will meet Briarwood Capital, USA on March 28, Arohi Asset Management Pte. Ltd., Singapore on March 29 and Capital Group, Singapore on April 3.
Mahindra & Mahindra: Company's officials will meet Nomura Securities on March 29.
Shemaroo Entertainment: Company's officials will meet Newmark Capital and Motilal Oswal Securities on March 28 in Mumbai.
Dr LalPath Labs: Company's officials will meet SAIF Partners and Banyan Tree Advisors on March 28, and Arisaig Partners on March 31.
Mahindra Logistics: A one-on-one meeting with Vallum Capital, Institutional Investor is scheduled to be held on April 1.
Stocks in News
Grasim Industries: Company allots 5,000, 7.65% fully-paid NCDs of Rs 10 lakh each aggregating to Rs 500 crore.
Texmo Pipes and Products: Board allotted 13 lakh equity shares at a price of Rs 23.20 per share, aggregating to Rs 3.01 crore to Shree Padmavati Irrigations LLP, promoter group entity on preferential basis.
Ador Welding: CARE downgraded rating on long term bank facilities to AA— from AA with outlook stable.
Mahindra & Mahindra Financial Services: Board approved the acquisition of 1,18,91,511 equity shares of Mahindra Rural Housing Finance Limited (MRHFL), a subsidiary of the company, aggregating to Rs 286.78 crore from National Housing Bank (NHB). Consequently, the shareholding of the company in MRHFL will increase from 88.75 percent to 98.43 percent as and when the shares are acquired.
Marathon Nextgen Realty: Board approved acquisition of 100 percent equity of 'Marathon Nextgen Townships Pvt Ltd' (MNTP) for a consideration of Rs 1 lakh, and investment proposal/s upto Rs 150 crore to spur up its growth activities.
Ruby Mills: The production at processing plant at Kharsundi has stopped due to labour unrest.
Lloyds Metals and Energy: The compay has been conferred the status of mega project under Package Scheme of Incentives - 2013 and received approval for incentives or facilities from Industries, Energy and Labour Department of Government of Maharashtra in respect to the proposed mineral based steel plant at Konsari, Gadchorioli.
Unichem Laboratories: Company has received final Approval for its ANDA, Tadalafil tablets, 2.5 mg, 5 mg 10 mg and 20 mg from the United States Food and Drug Administration for a generic version of Eli Lilly's Cialis.
Bharat Financial Inclusion: Company assigned a pool of receivables of an aggregate value of Rs 1,528.87 crore to one of the largest private sector banks on a Direct Assignment basis. With this transaction, the company has completed Direct Assignment transactions worth Rs 8,195.07 crore in FY19.
Sheela Foam: Company's non-retail investors' portion in offer for sale issue oversubscribed by 2.5 times, receiving bids for 1,05,90,951 shares against OFS size of 42,33,764 shares.
Tata Global Beverages: Board announced re-appointment of Ajoy Kumar Misra as the Managing Director and CEO of the company for a period of 1 year.
Mcleod Russel: Aditya Khaitan, the Vice Chairman of the board has been elected as the Chairman of the board of directors.
NBCC India: Company secured new works for various infrastructure projects of Rs 1,003 crore.
Godrej Agrovet: Company acquired an additional 1.1 percent stake in its joint venture Godrej Tyson Foods, increasing its total shareholding in same to 51 percent. It also acquired additional 2.16 percent stake in Godrej Maxximilk Private Limited, increasing its total shareholding in same to 52.06 percent. Consequently, both companies have become subsidiaries of Godrej Agrovet.
Four 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 March 28, Adani Enterprises, Adani Power, IDBI Bank and Jet Airways are present in this list.