A bigger rally should not be expected unless Nifty 50 registers a fresh breakout above 10,774 levels, according to Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.
After a correction amid volatility in early trade, the Nifty 50 managed to gain strength and closed above crucial 10,600 levels on November 26. It was a strong reversal amid a sharp decline in crude oil prices and firm global cues after a 1.5 percent fall in last week.
The index formed a bullish candle, which resembles a 'Hammer' kind of pattern on the daily charts.
The 50-share NSE Nifty closed 101.80 points or 0.97 percent higher at 10,628.60 while the 30-share BSE Sensex gained 373.06 points or 1.07 percent at 35,354.08.
The market showed a smart recovery but has been rangebound and the same is expected to continue for a couple of weeks, experts said, adding the rally is only possible if the Nifty crosses 10,774 levels.
"Markets are in the consolidation phase and we do not see this ending any time soon. Indications are mixed at present and it would take another week or two for further clarity," Jayant Manglik, President, Religare Broking told Moneycontrol.
He suggests participants focus more on stock selection in the meanwhile and prefer hedged positions.
All sectoral indices closed in the green barring Metal (down 1.3 percent) and Pharma (down 1.3 percent). Bank, Auto, FMCG and IT indices gained 1-2 percent while the broader markets underperformed frontliners with the Nifty Midcap index closing flat with a positive bias.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in said Monday's move for time being appears to have tilted the tide in favour of bulls because of which market may remain positively biased in next session.
However, a bigger rally going forward should not be expected unless Nifty 50 registers a fresh breakout above 10,774 levels, he added.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,628.60 on Monday. According to Pivot charts, the key support level is placed at 10,533, followed by 10,437.4. If the index starts moving upwards, key resistance levels to watch out are 10,681 and then 10,733.4.
The Nifty Bank index closed at 26,365.60, up 366.15 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 26,128.26, followed by 25,890.93. On the upside, key resistance levels are placed at 26,499.76, followed by 26,633.93.
Call Options Data
Maximum Call open interest (OI) of 33.80 lakh contracts was seen at the 10,700 strike price. This will act as a crucial resistance level for the November series.
This was followed by the 11,000 strike price, which now holds 32.83 lakh contracts in open interest, and 10,800, which has accumulated 28.70 lakh contracts in open interest.
There was hardly any Call writing seen.
Maximum Call unwinding was seen at the strike price of 10,600, which shed 6.05 lakh contracts, followed by 11,000 which shed 4.91 lakh contracts and 10,700 which shed 4.25 lakh contracts.
Put Options data
Maximum Put open interest of 43.04 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the November series.
This was followed by the 10,600 strike price, which now holds 31.05 lakh contracts in open interest, and the 10,400 strike price, which has now accumulated 29.14 lakh contracts in open interest.
Put writing was seen at the strike price of 10,500, which added 13.25 lakh contracts, followed by 10,600 strike which added 10.34 lakh contracts and 10,400 strike which added 7.26 lakh contracts.
Put unwinding was seen at the strike price of 10,900, which shed 0.3 lakh contracts, followed by 10,800 which shed 0.11 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) bought shares worth Rs 62.74 crore and domestic institutional investors purchased Rs 351.78 crore worth of shares in the Indian equity market on Monday, 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.
86 stocks saw a long buildup
38 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
58 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.
19 stocks saw long unwinding
Agro Phos India: Bharati Arvind Shah purchased 1,80,000 shares of the company at Rs 42.12 per share on the NSE.
GSS Infotech: Dharmesh Maldevbhai Godhania bought 1 lakh shares of the company at Rs 117.95 per share on the NSE.
Sita Shree Food Products: Daffodil Laboratories Private Limited purchased 3,72,049 shares of the company at Rs 0.75 per share on the NSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Motherson Sumi Systems: Conference organised by UBS Global Emerging Markets to be held on November 27 at New York and organised by Nomura to be held on December 3-4 at Hong Kong.
TIL: Conference call with the investors/shareholders of TIL has been fixed through Emkay Global Financial Services Limited on November 29.
Acrysil: Officials of the Company will be attending the investor conference hosted by Edelweiss on November 27 in Mumbai.
Greenply Industries: Investor and Analyst Meet to discuss the operating & financial performance and future growth plans of the company on December 6.
Mishtann Foods: Board meeting is scheduled for December 4 to consider to apply and authorise any director of the company, for making application for listing at Metropolitan Stock Exchange (MSE).
Welspun Corp: Company will be attending a conference Organised by Edelweiss Broking on November 27 in Mumbai.
Tata Steel: Company's officials will be meeting Legal & General Investment Management, Insight Investments, Amundi Pioneer and Stone Harbor Investment Partners on November 27 in London.
Inox Leisure: Board meeting will be held on November 29 to approve the issue price for the preferential allotment.
Godawari Power & Ispat: Dinesh Gandhi, Director of the company will be participating in a conference organised by Edelweiss Broking Limited on November 27.
Muthoot Finance: Board meeting is scheduled for December 6 to consider the unaudited standalone financial results of the company for the quarter and half year ended September 2018.
Eicher Motors: Company's officials will be meeting JP Morgan Global on November 27.
Galaxy Surfactants: Officials of the company will be meeting investors and analyst at the plant and R&D centre on November 27 in Navi Mumbai.
Emmbi Industries: Company will be attending a conference Organised by Edelweiss Broking on November 27 in Mumbai.
Indostar Capital Finance: Company will be attending a conference Organised by Edelweiss Broking on November 27 in Mumbai.
Magma Fincorp: Company will be attending a conference Organised by Edelweiss Broking on November 27 in Mumbai.
Future Supply Chain Solutions: Officials of the company will be participating in the "Edelweiss GWAM Emerging Ideas Conference" scheduled to be held on November 27 at Mumbai and would meet various categories of investors.
Tamil Nadu Newsprint & Papers: Company's officials will be meeting HDFC Fund on November 27.
Multi Commodity Exchange of India: Company will be participating in a non-deal roadshow of UBS Securities India Private Ltd and IIFL Holdings Limited on November 26-27 in Hong Kong, November 29-30 on Singapore and December 3-5 in the UK.
Stocks in news
Sun Pharmaceutical Industries: Company and its wholly-owned subsidiary entered into settlements with certain plaintiffs in the In re Modafinil Antitrust Litigation matter pending in the United States District Court for the Eastern District of Pennsylvania. The settlements extend to all claims brought by the direct are confidential.
Sun Pharmaceutical Industries: Company to acquire Pola Pharma in Japan by way of cash consideration of 100 million Japanese Yen (approximately $1 million).
IL&FS Transportation Networks: Interest due and payable on November 26 on the NCDs was not paid to the debenture holders due to insufficient funds.
NMDC: Total iron ore production up to October 2018 at 15.47 million tonne and sales production at 16.55 million tonnes.
IFCI: On account of resolution of Binani Cement through NCLT, IFCI, which is holding 42,16,850 security receipts of the face value of Rs 1,000 each has received an amount of Rs 491.84 crore, net of TDS of Rs 30.55 crore, pursuant to the said resolution.
Yes Bank: Promoter companies prepaid Rs 200 crore to Reliance MF and Rs 200 crore to Franklin Templeton - CNBC-TV18 Sources. Outstanding loans of bank promoters reduced to Rs 1,400 crore.
Matrimony.com: Board approved resignation of K Balasubramanian as CFO and approved appointment of Sushanth Pai as CFO.
Oriental Bank of Commerce: Shareholders to consider issuing up to 5 crore shares under ESPS.
Richfield Financial Services: Board approved resignation of Abhijit Puglia as MD and appointed Rishabh Kankaria as the new MD.
Unichem Labs: Mumbai office receives Establishment Inspection Report (EIR) from USFDA for post marketing adverse drug experience inspection.
Suzlon Energy: Company has completed the sale of Tornado to CLP and accordingly, Tornado has ceased to be a subsidiary of the company.
Sunil Agro Foods: Company has commenced commercial production on the expanded capacity.
TGV Sraac: To recommend appropriate Special Resolution for members approval at the Annual General Meeting for issue and allotment of 1,52,73,682 convertible warrants to the promoters (Brilliant Industries Pvt. Ltd., and Sri T G Venkatesh) at an issue price of Rs 37.01 per warrant to be converted into Equity Shares in the ratio of 1:1 within a period of 18 months of allotment.
4 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 November 27, 2018, Adani Enterprises, Adani Power, DHFL and Jet Airways are present in this list.