Shabbir Kayyumi of Narnolia Financial Advisors said Nifty50 trading above 11,800 will accelerate up move taking it higher towards 12,000 levels
The market closed a volatile session marginally higher on May 22, the day before the Lok Sabha election 2019 result on May 23.
India VIX moved up by 7.73 percent to 27.63 levels hitting a new record high of 30.18, the highest levels in 44 months since September 2015.
Traders turned cautious following fresh record highs on indices on Monday after exit polls indicated the ruling party may get a second term, experts said, adding wild swings on either direction are also expected on election results scheduled on May 23.
The BSE Sensex gained 140.41 points at 39,110.21 while the Nifty 50 rose 28.80 points to close at 11,737.90 and formed small bullish candle which resembles a Doji kind of pattern on the daily scale.
"As tomorrow is result announcement date of General Election-2019 and extreme volatile movement cannot be ruled out," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors told Moneycontrol.
Moreover, index trading above 11,800 will accelerate up move taking it higher towards 12,000 levels; at the same time a close below 20 DMA placed at 11,514 will push prices lower towards 11,400 levels, he said.
Higher VIX could continue to keep a volatile swing in the market but a sharp cut in VIX cannot be ruled out after the outcome of election result as per the Options property, Chandan Taparia of Motilal Oswal said.
Among sectors, banks, auto, metals and pharma closed higher while IT and FMCG fell sharply. The broader markets ended mixed with a flat close for Nifty Midcap 100 index. The Nifty Smallcap 100 index gained half a percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,737.90 on May 22. According to the Pivot charts, the key support level is placed at 11,685.27, followed by 11,632.63. If the index starts moving upward, key resistance levels to watch out are 11,787.67 and 11,837.43.
The Nifty Bank index closed at 30,526.80, up 218.40 points on May 22. The important Pivot level, which will act as crucial support for the index, is placed at 30,305.23, followed by 30,083.67. On the upside, key resistance levels are placed at 30,711.73, followed by 30,896.67.
Call options data
Maximum Call open interest (OI) of 37.83 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the May series.
This was followed by 12,200 strike price, which now holds 17.23 lakh contracts in open interest, and 11,800, which has accumulated 13.75 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 12,200, which added 2.37 lakh contracts, followed by 12,100 strike price that added 1.87 lakh contracts and 12,000 strike price that added 1.74 lakh contracts.
Call unwinding was seen at the strike price of 11,600, which shed 0.8 lakh contracts, followed by 11,200 strike which shed 0.4 lakh contracts.
Put options data
Maximum Put open interest of 20.39 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the May series.
This was followed by 11,700 strike price, which now holds 16.46 lakh contracts in open interest and 11,200 strike price, which has now accumulated 13.42 lakh contracts in open interest.
Put writing was seen at the strike price of 11,700, which added 3.84 lakh contracts, followed by 11,500 strike price that added 3.34 lakh contracts and 11,200 strike price that added 2.72 lakh contracts.
Put unwinding was seen at the strike price of 11,600, which shed 2.54 lakh contracts, followed by 11,400 strike which shed 2.34 lakh contracts.
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.
45 stocks saw a long buildup
78 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
37 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.
38 stocks saw long unwinding
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 965.02 crore and Domestic Institutional Investors (DIIs) sold Rs 157.75 crore worth of shares in the Indian equity market on May 22, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in news
Results on May 23: Sun TV Network, Eclerx Services, Eros International, Indraprastha Gas, General Insurance Corporation of India, HealthCare Global Enterprises, MEP Infrastructure Developers, Novartis India, 3P Land Holdings, A2Z Infra Engineering, Aarvee Denims & Exports, Abans Enterprises, Abhinav Capital Services, Adinath Exim Resources, Allsec Technologies, Amradeep Industries, Amraworld Agrico, Amrutanjan Healthcare, Arex Industries, Asahi Industries, Add-Shop Promotions, Auro Laboratories, Banas Finance, Bhagyanagar Properties, Bhagyanagar India, BLS Infotech, Cantabil Retail India, Computer Point, Coromandel Agro Products & Oils, Creative Castings, Daikaffil Chemicals, Disa India, Dolphin Medical Services, Dwarikesh Sugar Industries, Euro Asia Exports, Florence Investech, Frontline Business Solutions, Frontier Capital, Garware Marine Industries, GK Consultants, Gokak Textiles, Goldiam International, Golden Legand Leasing, Goldstone Technologies, Gopal Iron & Steels, Hazoor Multi Projects, Industrial Investment Trust, Integrated Technologies, Integrated Proteins, I-POWER Solutions India, Jackson Investments, Jaybharat Textiles & Real Estate, J Taparia Projects, Kilpest India, K-Lifestyle & Industries, KSL and Industries, Ladderup Finance, Lakshmi Automatic Loom Works, Mandhana Industries, Mercantile Ventures, MFS Intercorp, Modipon, Mukat Pipes, National Standard (India), Naysaa Securities, NCL Research & Financial, Oil Country Tubular, Praxis Home Retail, Proseed India, Ramco Industries, Ratnabhumi Developers, Religare Enterprises, Retro Green Revolution, Rishabh Digha Steel, Rane (Madras), Rudra Global Infra Products, Sanghvi Movers, Sarla Performance Fibers, Sellwin Traders, SEL Manufacturing Company, Seven Hill Industries, Shaba Chemicals, Shivalik Bimetal Controls, Shree Securities, Siel Financial Services, SP Apparels, Sprayking Agro Equipment, Sterling Tools, South India Paper Mills, Sundaram Multi Pap, Sun and Shine Worldwide, Sun Techno Overseas, Surana Solar, Surana Telecom, Switching Technologies, Technvision Ventures, Thirdwave Financial Intermediaries, Transoceanic Properties, TVS Srichakra, Universal Autofoundry, Xchanging Solutions
Bank Of Baroda Q4: Net loss at Rs 991.4 crore versus loss of Rs 3,102.3 crore, NII up 26.6 percent at Rs 5,067 crore versus Rs 4,002.3 crore YoY. Gross NPA at 9.61 percent versus 11.01 percent and net NPA at 3.33 percent versus 4.26 percent QoQ.
Thermax Q4: Net profit up 67.6 percent at Rs 126.9 crore versus Rs 75.7 crore; revenue up 43.7 percent at Rs 2,073.7 crore versus Rs 1,443 crore YoY.
Cummins Q4: Net profit down 12.6 percent at Rs 140.9 crore versus Rs 161 crore; revenue up 8.9 percent at Rs 1,340 crore versus Rs 1,230.2 crore YoY.
Future Consumer Q4: Consolidated net profit at Rs 7.5 crore versus loss of Rs 4.5 crore; revenue up 27.9 percent at Rs 1,037 crore versus Rs 811 crore YoY.
GSFC Q4: Net profit down 36.3 percent at Rs 99.7 crore versus Rs 156.4 crore; revenue up 4.2 percent at Rs 2,138.4 crore versus Rs 2,052.2 crore YoY.
Redington Q4: Consolidated net profit up 20.2 percent at Rs 172.5 crore versus Rs 143.5 crore; revenue up 15.6 percent at Rs 12,582.6 crore versus Rs 10,880 crore YoY.
Skipper Q4: Net profit down 64.1 percent at Rs 18 crore versus Rs 49 crore; revenue down 26.9 percent at Rs 433.4 crore versus Rs 592.8 crore YoY.
Veto Switchgears Q4: Net profit down 84.5 percent at Rs 1.1 crore versus Rs 7.1 crore; revenue down 33.4 percent at Rs 46.9 crore versus Rs 70.4 crore YoY.
SH Kelkar Q4: Net profit up 1.5 percent at Rs 20 crore versus Rs 19.7 crore, revenue down 5.3 percent at Rs 268.8 crore versus Rs 283.8 crore YoY.
Ashoka Buildcon Q4: Net profit down 47.2 percent at Rs 98 crore versus Rs 186 crore; revenue up 86.2 percent at Rs 1,307.4 crore versus Rs 702.3 crore YoY.
TD Power Q4: Net profit at Rs 15.4 crore versus Rs 3.7 crore; revenue up 25.7 percent at Rs 200.8 crore versus Rs 159.8 crore YoY.
Biocon: Health Canada approves company & Mylan’s Trastuzumab biosimilar
Nitin Fire Protection: Bharat Shah resigned as Chief Financial Officer of the company.
Analyst or Board Meet/Briefings
S H Kelkar and Company: Board meeting is scheduled on June 10 to consider buyback of equity shares and acquisition of remaining 49 percent stake in Creative Flavours and Fragrances S.p.A.
Man Industries (India): Board meeting is scheduled to be held on May 28 to consider March quarter results.
Prime Focus: Board meeting to be held on May 30 to consider March quarter results.
Oriental Bank of Commerce: Board meeting is scheduled on June 1 to consider raising of capital from the market through QIP or such other mode.
Emami Realty: Board meeting is scheduled on May 30 to consider March quarter results.
Three stocks under ban period on NSE
For May 23, Adani Power, IDBI Bank and Reliance Capital are under a ban period.Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.