Gaurav Ratnaparkhi of Sharekhan by BNP Paribas said the bulls managed to defend the swing low of 11,550 (crucial support) thus keeping the possibility of wave extension open.
Bulls staged smart comeback on April 24 after selling pressure seen in previous three consecutive sessions. The rally in banking & financials and technology stocks lifted benchmark indices above their psychological levels (39,000 on Sensex and 11,700 on Nifty).
The BSE Sensex rallied 489.80 points or 1.27 percent to close at 39,054.68 while the Nifty50 climbed 150.20 points or 1.30 percent to 11,726.20 and formed strong bullish candle on daily charts.
The sharp rebound ahead of April F&O expiry indicated that uptrend may continue and Nifty could move towards an all-time high of 11,850 levels in the near term, experts said.
"A long bull candle was formed on Wednesday from near the key lower support at 11,550 levels. Nifty holding on the said support could open up further upside as per the positive sequence of higher tops and bottoms," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
As per this pattern one may expect Nifty to move towards an all-time high of 11,850 levels in the near term, according to him.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said the bulls managed to defend the swing low of 11,550 (crucial support) thus keeping the possibility of wave extension open. "This means that the index has a scope to surpass the recent high of 11,856 & head towards the level of 12,170 in the short term.
"With Wednesday's bounce the Nifty has filled up the recent gap on the daily chart thus discarding the bearish Island pattern formation and this adds to the weight of evidence in favour of the bulls. So we expect positive momentum to continue going ahead," he added.
The broader markets underperformed frontliners with the Nifty Midcap index rising 0.4 percent and Smallcap 0.8 percent. All sectoral indices closed in green barring Auto. Nifty Bank, Financial Service and IT indices gained around 1.3 percent each.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,726.15 on April 24. According to the Pivot charts, the key support level is placed at 11,623.07, followed by 11,519.93. If the index starts moving upward, key resistance levels to watch out are 11,785.07 and 11,843.93.
The Nifty Bank index closed at 29,860.80, up 381.10 points on April 24. The important Pivot level, which will act as crucial support for the index, is placed at 29,559, followed by 29,257.2. On the upside, key resistance levels are placed at 30,038.7, followed by 30,216.6.
Call options data
Maximum Call open interest (OI) of 27.11 lakh contracts was seen at the 11,800 strike price. This will act as a crucial resistance level for the April series.
This was followed by 12,000 strike price, which now holds 26.68 lakh contracts in open interest, and 11,700, which has accumulated 16.82 lakh contracts in open interest.
There was hardly any Call writing seen.
Call unwinding was seen at the strike price of 11,700 that shed 35.79 lakh contracts, followed by 11,600 strike price that shed 14.50 lakh contracts and 12,000 strike which shed 10.82 lakh contracts.
Put options data
Maximum Put open interest of 27.40 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 11,600 strike price, which now holds 27.27 lakh contracts in open interest and 11,700 strike price, which has now accumulated 24.06 lakh contracts in open interest.
Put writing was seen at the strike price of 11,700 that added 11.69 lakh contracts, followed by 11,600 strike price that added 6.71 lakh contracts.
Put unwinding was seen at the strike price of 11,300, which shed 2.18 lakh contracts, followed by 11,800 strike price that shed 1.97 lakh contracts and 12,000 strike price that shed 0.68 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 974.88 crore while Domestic Institutional Investors (DIIs) sold Rs 657.06 crore worth of shares in the Indian equity market on April 24, 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.
69 Stocks saw a long buildup
78 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
17 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.
33 stocks saw long unwinding
Bulk Deals on April 24
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Analyst or Board Meet/Briefings
PTC India: Company will declare its March quarter earnings on May 14.
Blue Star: Investors conference call post announcement Q4FY19 financial results and FY19 financial statements of the company is scheduled on May 3.
PBA Infrastructure: Board meeting is scheduled on April 25 to consider appointment of Chief Financial Officer (CFO) of the company.
Godrej Properties: Conference call with investors and analysts to be held on Tuesday, April 30.
Excel Crop Care: Company's officials will meet IndiaNivesh Investment Managers, ICICI Prudential Mutual Fund and SBI Mutual Fund on April 26.
Stocks in news:
Results on April 25: Maruti Suzuki India, Axis Bank, Tata Steel, Biocon, SBI Life Insurance Company, Aditya Birla Money, Cyient, GHCL, Indiabulls Ventures, MCX, Nestle India, AAR Commercial Company, Apcotex Industries, Betala Global Securities, Cochin Malabar Estates, Lloyds Metals and Energy, Oriental Hotels, PH Capital, Rallis India, Sterling Guaranty & Finance, Vesuvius India, Wendt (India)
Indiabulls Housing Finance Q4: Consolidated profit falls 6.9 percent YoY and rises 2.1 percent QoQ to Rs 1,001.4 crore; NII increases 5.8 percent to Rs 1,591 crore versus Rs 1,504 crore QoQ.
SBI: Board approves raising up to $2.5 billion through dollar notes in FY20.
Automotive Stampings Q4: Loss at Rs 3.82 crore versus loss at Rs 9.1 crore; revenue rises to Rs 139 crore versus Rs 111.9 crore YoY.
Shah Foods: Company has received a letter from Britannia Industries Limited stating that the job work contract is terminated with effect from 30/06/2019.
Persistent Systems: Company has appointed Sandeep Kalra as President - Technology Services, with effect from May 1, 2019.
FDC: Company' non-sterile manufacturing facility located at Waluj, Aurangabad, Maharashtra had recently undergone an inspection by PIC/S Malaysia and it continues to be approved. Hence, the Company continues to export oral liquid, oral powder and external powder products.
Six 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 25, Adani Power, DLF, IDBI Bank, Idea Cellular, Jet Airways and Reliance Power are present in this list.
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