Nifty is currently placed at the minor trend line resistance around 11,250 and this hurdle is expected to be broken on the upside by the next session, Nagaraj Shetti of HDFC Securities has said.
The market rallied more than 1.5 percent on September 28, in addition to nearly 3 percent gains seen in the previous session. The hope of a stimulus package and measures by the government to boost the economy lifted sentiment.
The buying continued across sectors with Bank, Auto and Metal indices rising 3 percent each.
The BSE Sensex climbed 592.97 points or 1.59 percent to close at 37,981.63, while the Nifty50 rose 177.20 points or 1.60 percent to 11,227.50 and formed a bullish candle on the daily charts for the second consecutive session.
"A long bull candle was formed with opening upside gap and the said up gap remains unfilled. This is a positive indication and if this gap remains unfilled for the next 2-3 sessions, then that could mean more upside for the near term," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
"Nifty is currently placed at the minor trend line resistance around 11,250 and this hurdle is expected to be broken on the upside by next session. After this hurdle, one may expect 11,350-11,400 as crucial overhead resistance for the near term," he said.
"The bearish negative pattern of lower tops and bottoms is intact and present upmove could be a part of a new lower top formation. We need reversal at the lower highs to call this as a lower top reversal pattern," he added.
The broader markets also joined the party, as the Nifty Midcap and Smallcap indices gained 3 percent and 3.6 percent respectively.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty is placed at 11,138.43, followed by 11,049.37. If the index moves up, the key resistance levels to watch out for are 11,277.93 and 11,328.37.
The Bank Nifty continued to outperform Nifty50, climbing 683.15 points or 3.26 percent to 21,665.50 on September 28 and formed a bullish candle on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 21,244.13, followed by 20,822.77. On the upside, key resistance levels are placed at 21,897.83 and 22,130.17.
Call option data
Maximum Call open interest of 17.62 lakh contracts was seen at 11,500 strike, which will act as crucial resistance in the October series.
This is followed by 12,000 strike, which holds 15.34 lakh contracts, and 11,000 strike, which has accumulated 10.9 lakh contracts.
Call writing was seen at 11,500 strike, which added 1.83 lakh contracts, followed by 12,100, which added 84,675 contracts, and 11,700 strike, which added 67,500 contracts.
Call unwinding was seen at 11,000 strike, which shed 1.21 lakh contracts, followed by 11,200 strike, which shed 73,275 contracts and 10,900 strike which shed 49,125 contracts.
Put option data
Maximum Put open interest of 33.63 lakh contracts was seen at 10,500 strike, which will act as crucial support in the October series.
This is followed by 11,000 strike, which holds 19.41 lakh contracts, and 10,800 strike, which has accumulated 16.45 lakh contracts.
Put writing was seen at 11,200 strike, which added 3.08 lakh contracts, followed by 11,000 strike, which added 1.77 lakh contracts and 11,100 strike which added 1.39 lakh contracts.
Put unwinding was witnessed at 10,600 strike, which shed 51,075 contracts, followed by 10,700 strike which shed 17,550 contracts and 10,200 strike which shed 34,125 contracts.
Stocks with a high delivery percentageA high delivery percentage suggests that investors are showing interest in these stocks.
76 stocks saw long build-up
Based on the open interest future percentage, here are the top 10 stocks in which long build-up was seen.
No stocks saw long unwinding
Not a single stock witnessed long unwinding on September 28.
Three stocks saw short build-upAn increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, here are those 3 stocks in which short build-up was seen.
59 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, here are top 10 stocks in which short-covering was seen.
(For more bulk deals, click here)
Meghmani Organics: The senior management team of the company is participating in Virtual Motilal Oswal, 2nd Annual India Ideation Conference on September 29.
Trident: The company's officials to attend a Virtual Investor Conference organised by Motilal Oswal Financial Services on September 29.
Everest Industries: The company, on November 3, to consider unaudited financial results for the quarter and half year ending September 30, 2020.
Puravankara: The company's officials will interact with Aviva Life Insurance Company India, SBI Funds Management, JM Financial Services and Angel Broking via conference on September 29.
Satin Creditcare Network: A committee meeting to be held on October 1 for the issuance of NCDs up to Rs 25 crore through private placement.
Sterlite Technologies: The company will be participating in 'Motilal Oswal Ideation Conference' on September 29.
Indian Energy Exchange: The company's officials will meet Ocean Dial and Fidelity Management Research via video conference on September 29.
MEP Infrastructure Developers: 18th Annual General Meeting of the company will be held on October 22, 2020.
Endurance Technologies: The company to consider September quarter earnings on November 10.
Stocks in the news
India Grid Trust: The company completed the acquisition of 74 percent in Jhajjar KT Transco (JKTPL) from Kalpataru Power Transmission and Techno Electric & Engineering Company.
Anuh Pharma: The company received approval from WHO - Geneva Prequalification for Pyrimethamine API which is used as anti-malarial drugs.
Hexaware Technologies: HDFC Asset Management Company offloaded the entire 5.02 percent stake in the company.
Shalby: Board approved to reduce promoters' shareholding in the company to 75 percent from 79.45 percent.
Infosys: Subsidiary EdgeVerve Systems signed a partnership with Minit, a leader in process mining, to help its clients accelerate process excellence.
UTI AMC: IPO to open on September 29 and close on October 1 with a price band of Rs 552-554 per share.
Mazagon Dock Shipbuilders: IPO to open on September 29 and close on October 1 with a price band of Rs 135-145 per share.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 26.98 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 542.34 crore in the Indian equity market on September 28, as per provisional data available on the NSE.
Stock under F&O ban on NSENot a single stock is under the F&O ban for September 29. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.