Nagaraj Shetti of HDFC Securities said as long as Tuesday's upside gap remains intact at 11,705 levels, the short term trend of Nifty can be presumed to be up.
The bulls finally managed to flex their muscles on April 16 after consolidation for the last couple of weeks. Both Sensex and Nifty registered new all-time highs of 39,364.3 and 11,810.95, respectively.
The rally in private banks, auto and FMCG stocks along with positive Asian cues lifted market sentiment.
The BSE Sensex climbed 369.80 or 0.95 percent to 39,275.64 while the Nifty 50 rallied 96.80 points or 0.83 percent to 11,787.15 and formed bullish candle on daily charts.
"The daily & the hourly Bollinger Bands have started to expand, which is an indication of an impending trending move. All these observations suggest that the index is set to march towards the psychological mark of 12,000 with potential to head till 12,170 in the short term," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.
He said on the flip side, the gap area of 11,731–11,704 will act as an immediate support zone with crucial support at the swing low of 11,550.
Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities also said as long as Tuesday's upside gap remains intact at 11,705 levels, the short term trend of Nifty presumed to be up. "Next upside levels to be watched at 11,900-11,950, which could be reached in the next few sessions."
But the broader markets did not participate in stellar run as Nifty Midcap and Smallcap indices ended flat.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,787.15 on April 16. According to the Pivot charts, the key support level is placed at 11,742.13, followed by 11,697.07. If the index starts moving upward, key resistance levels to watch out are 11,821.63 and 11,856.07.
The Nifty Bank index closed at 30,531.35, up 427.10 points on April 16. The important Pivot level, which will act as crucial support for the index, is placed at 30,309.37, followed by 30,087.43. On the upside, key resistance levels are placed at 30,672.07, followed by 30,812.84.
Call options data
Maximum Call open interest (OI) of 24.82 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the April series.
This was followed by 11,800 strike price, which now holds 18.33 lakh contracts in open interest, and 11,900, which has accumulated 15.62 lakh contracts in open interest.
Significant Call writing was seen at the 11,000 strike price, which added 0.90 lakh contracts, followed by 12,100 strike which added 0.55 lakh contracts.
Call unwinding was seen at the strike price of 11,700 that shed 5.04 lakh contracts, followed by 11,800 strike that shed 2.68 lakh contracts and 12,000 strike which shed 1.46 lakh contracts.
Put options data
Maximum Put open interest of 28.75 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the April series.
This was followed by 11,700 strike price, which now holds 22.94 lakh contracts in open interest and 11,600 strike price, which has now accumulated 18.98 lakh contracts in open interest.
Put writing was seen at the strike price of 11,800 which added 12.49 lakh contracts, followed by 11,700 strike which added 5.79 lakh contracts and 11,900 strike which added 1.4 lakh contracts.
Put unwinding was seen at the strike price of 11,600 strike, which shed 2.26 lakh contracts, followed by 11,400 strike that shed 1.75 lakh contracts and 11,300 strike that shed 0.98 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 1,038.58 crore and Domestic Institutional Investors (DIIs) purchased Rs 37.22 crore worth of shares in the Indian equity market on April 16, 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.
52 Stocks saw a long buildup
60 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
54 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.
30 stocks saw long unwinding
Bulk Deals on April 16
Reliance Capital: Axis Trustee Services Limited sold 30,02,500 shares of the company at Rs 177.94 per share on the NSE.
Suumaya Lifestyle: Sanjeev Harbanslal Bhatia sold 4,32,000 shares of the company at Rs 28.63 per share on the NSE.
(For more bulk deals, Click Here)
Analyst or Board Meet/Briefings
Aurionpro Solutions: Earnings Call to be held on May 3.
Tube Investments of India: Company will announce its March quarter earnings on April 30.
Supreme Petrochem: Company will announce its March quarter earnings on April 26.
ABB India: Company will announce its March quarter earnings on May 7.
MRF: Company will announce its March quarter earnings on May 2.
Stocks in news:
Results on April 18: Reliance Industries, RBL Bank, DCB Bank, ICICI Lombard General Insurance Company, Tata Sponge Iron, Jay Bharat Maruti, Uttam Galva Steels, Majestic Auto, Amal, Andhra Pradesh Tanneries, B2B Software Technologies
Mindtree Q4: Profit grew 3.8 percent to Rs 198.4 crore, revenue rose 2.9 percent to Rs 1,839.4 crore, dollar revenue grew 4.2 percent to $262 million, constant currency revenue growth of 3.9 percent QoQ. The company crossed $1 billion in annual revenue.
Mindtree: Company recommended a final dividend of 40 percent (Rs 4 per share) for the financial year ended March 2019 and a special dividend of 200 percent (Rs 20 per share) to celebrate the twin achievements of exceeding $1 billion annual revenue milestone and the 20th anniversary of the company.
CRISIL March quarter: Consolidated profit fell to Rs 76.64 crore versus Rs 82.21 crore; revenue declined to Rs 415.79 crore versus Rs 419.95 crore YoY.
CRISIL: Company approved payment of an interim dividend of Rs 6 per share for the financial year ending December 2019.
Reliance Industries: Mitsui O.S.K. Lines will acquire a strategic stake in six group companies (each owning a very large ethane carrier) of RIL.
Eris Lifesciences: Completed consolidation of shareholding in the subsidiary, Kinedex Healthcare completed.
Sadbhav Infrastructure Project: Sadbhav Vizag Port Road, a wholly-owned subsidiary of the company submitted draft financing documents to NHAI in relation to financial close.
ICICI Lombard General Insurance Company: ICRA reaffirmed the iAAA rating to the claims-paying ability of the company.
Cadila Healthcare: Zydus received final approval from the USFDA for Acetazolamide for injection.
Hindalco Industries: Toyota selected company's subsidiary Novelis as an aluminum supplier for 2019 vehicle RAV4.
Weizmann Forex: Board considered the appointment of 3 additional directors and resignation of directors.
Intellect Design Arena: Ithala SOC, licensed financial services and registered credit provider based in South Africa chose Intellect Digital Core to power their digital transformation.
Cadila Healthcare: Zydus announces Phase 3 trial of Desidustat in non-dialysis dependent chronic kidney disease (CKD) patients with anaemia.
Five 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 April 18, IDBI Bank, Idea Cellular, Jet Airways, PC Jeweller and Reliance Power are present in this list.
Out of F&O ban: DHFL, WockhardtDisclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.