Traders are advised to be prepared for wild swings in either of the directions over the course of the next session and advised focus on larger trends rather than getting worried by the volatility of the day.
The Nifty started on a mildly positive note but failed to gain momentum and closed flat on Monday forming an indecisive pattern known as ‘Doji’ on the daily candlestick charts.
A 'Doji' is formed when the index opens and closes approximately around the same level staying volatile through the day. This is indicated by its long shadow on either side. It appears like a cross or a plus sign.
The index breached 10,800 levels on an intraday basis but managed to climb back to close above 10,800 for the second consecutive day in a row.
“The Nifty registered a Doji kind of indecisive formation ahead of the major event suggesting that market participants lacked directional clue and has taken a cautious stance. Although the technical picture is looking somewhat positive, but the market is bound to get influenced by the event,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
“Traders are advised to be prepared for wild swings in either of the directions over the course of the next session and advised focus on larger trends rather than getting worried by the volatility of the day,” he said.
Mohammad further added that in case if Nifty registers a short-term top at Monday’s high of 10,834 then the correction may get eventually extended up to the zone of 10,534 – 10,456 over the next couple of sessions.
“In between, 10,601 can act as a minor support but corrective swing shall get culminated only after dipping below 10,601. On the other hand, a positive outcome may drive the indices initially towards its logical targets of 10,928 levels,” he said.
India VIX moved up by 1.93 percent at 14.25 levels. On the options front, maximum Put OI is placed at 10,500 followed by 10,700 strikes while maximum Call OI is placed at 11,000 followed by 10,800 strikes.
We have collated top 15 data points to help you spot profitable trade
Key support and resistance level for Nifty
The Nifty closed at 10,806.6 on Monday. According to Pivot charts, key support level is placed at 10,776.0, followed by 10,745.4. If the index starts moving upwards, key resistance levels to watch out are 10,836.0 and 10,865.4.
The Nifty Bank index closed at 26,475.2. The important Pivot level, which will act as crucial support for the index, is placed at 26,353.74, followed by 26,232.27. On the upside, key resistance levels are placed at 26,581.04, followed by 26,686.87.
Call Options data
In terms of open interest, the 11,000 Call option has seen the most call writing so far at 61.46 lakh contracts. This could act as a crucial resistance level for the index in the May series.
The second-highest buildup has taken place in the 10,800 Call option, which has seen 36.44 lakh contracts getting added so far. The 10,900 Call option has accumulated 35.51 lakh contracts.
Call writing was seen at the strike price of 10,900, which shed 3.44 lakh contracts, followed by 11,100, which added 3.20 lakh contracts as well as 11,000, which added 1.55 lakh contracts.
Call unwinding was seen at the strike price of 10,700, which shed 1.53 lakh contracts, followed by 10,500, which shed 84,525 contracts, and 10,600, which shed 39,225 contracts.
Put Options data
Maximum open interest in put options was seen at a strike price of 10,500, in which 66.77 lakh contracts been added till date. This could be a crucial resistance level for the index in May series.
The 10,700 put option comes next, having added 50.15 lakh contracts so far, and the 10,600 put option, which has now accumulated 47.46 lakh contracts.
Put writing was seen at the strike price of 10,700, which shed 6.33 lakh contracts, followed by 10,800, which added 5.86 lakh contracts, and 10,500, which added 3.59 lakh contracts.
Put unwinding was seen at the strike price of 10,300, which shed 2.39 lakh contracts, followed by 11,200, which shed 42,525.
FII & DII data:
Foreign institutional investors (FIIs) bought shares worth Rs 717.99 crore, while domestic institutional investors bought shares worth Rs 687.23 crore in the Indian equity market, as per provisional data available on the NSE.
Fund flow picture:
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.
19 stocks saw long buildup
45 stocks saw short covering:
A decrease in open interest along with an increase in price mostly indicates short covering.
78 stocks saw short build-up:
An increase in open interest along with a decrease in price mostly indicates build-up of short positions.
67 stocks saw long unwinding
Balrampur Chini: Divya Portfolio traded over 11.6 lakh shares at Rs 64.8 apiece.
Just Dial: Shaastra Securities traded 4.19 lakh shares at Rs 418.9 apiece.
MPhasis: Marble II sold 1.54 crore shares at Rs 960.09.
Oppenheimer International Small Company Fund bought 28 lakh shares at Rs 960.
PC Jeweller: Shaastra Securities traded 39.2 lakh shares at Rs 180 per piece.
(For more bulk deals click here)
Analyst or Board Meet/Briefings:
Mahindra Logistics: The company will be interacting with analysts between May 14 and 16, 2018.
Aster DM Healthcare: The company will hold an analysts call on May 22, 2018.
Welspun India: Its investor call is scheduled for May 17, 2018.
Newgen Software: Its analyst call is scheduled for May 17, 2018.
Stocks in focus
Vedanta: The firm has Received CCI Nod For Acquisition Of Electrosteel Steels
Blue Star: Its Q4 has risen 38 percent at Rs 51.2 crore.
HUL: Net profit grows 14 percent to Rs 1,351 crore.
Reliance Infra: The Board has approved issue of shares through rights issue or QIP for up to Rs 3,000 crore.
NALCO: Inks MoU With Govt, Sets Target Of Rs 9,350 crore From Operations From FY19
6 stocks under ban period on NSE
Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For May 15, 2018 stocks such as DHFL, IRB, Jet Airways, JP Associates, Just Dial, and Wockhardt are present in this list.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd and publishes Moneycontrol.com)