Jayant Manglik of Religare Broking advises keeping limited exposure and continuing a stock-specific trading approach.
The market traded strong and ended around the day's high. US President Donald Trump's statement that he would postpone tariff hike on Chinese imports, and the approval of the GST Council to lower the tax rate on real estate projects aided sentiment.
The 30-share BSE Sensex rallied 341.90 points to 36,213.38 while the Nifty 50 gained 88.40 points at 10,880.10 and formed bullish candle on the daily charts as bulls took the control on the Dalal Street.
"The Nifty has managed to close above its stiff resistance of 200-day SMA placed around 10,862 & 50 DMA trading around 10,824 levels. Any decisive move above 10,930 will push the index higher towards crucial resistance zone of 10,980-11,000 levels," Shabbir Kayyumi, Head - Technical & Derivative Research at Narnolia Financial Advisors told Moneycontrol.
On the contrary, a close below 5-day EMA (10,795) will change the current bullish sentiment, he said.
All sectoral indices closed in the green barring PSU Bank and Realty. Nifty Bank, Auto, IT and Private Bank indices were prominent gainers, rising 1-2 percent.
The broader markets also participated in the run with the Nifty Midcap index rising 0.36 percent and Smallcap index 0.76 percent. The market breadth was positive throughout the day.
"The recovery in broader indices is indeed a positive sign but it's early to call a trend reversal. We advise keeping limited exposure and continuing the stock-specific trading approach. Nifty has next hurdle at 10,950," Jayant Manglik, President - Retail Distribution, Religare Broking told Moneycontrol.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 10,880.10 on February 25. According to Pivot charts, the key support level is placed at 10,816.37, followed by 10,752.63. If the index starts moving upward, key resistance levels to watch out are 10,915.47 and then 10,950.83.
The Nifty Bank index closed at 27,159.25, up 291.70 points on February 25. The important Pivot level, which will act as crucial support for the index, is placed at 26,995.57, followed by 26,831.93. On the upside, key resistance levels are placed at 27,259.97, followed by 27,360.73.
Call options data
Maximum Call open interest (OI) of 38.40 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the February series.
This was followed by the 11,100 strike price, which now holds 26.14 lakh contracts in open interest, and 10,900, which has accumulated 24.43 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,100, which added 3.33 lakh contracts.
Call unwinding was seen at the strike price of 10,800 that shed 6.66 lakh contracts, followed by 10,900 strike that shed 4.73 lakh contracts and 11,200 strike that shed 3.34 lakh contracts.
Put options data
Maximum Put open interest of 35.43 lakh contracts was seen at the 10,700 strike price. This will act as a crucial support level for the February series.
This was followed by the 10,800 strike price, which now holds 34.25 lakh contracts in open interest, and the 10,400 strike price, which has now accumulated 28.93 lakh contracts in open interest.
Put writing was seen at the strike price of 10,800 which added 11.45 lakh contracts, followed by 10,900 strike that added 5.11 lakh contracts.
Put unwinding was seen at the strike price of 10,600 that shed 3.99 lakh contracts, followed by 10,500 strike that shed 2.2 lakh contracts and 10,400 strike which shed 1.75 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 2,134.35 crore while Domestic Institutional Investors sold Rs 1,746.4 crore worth of shares in the Indian equity market on February 25, as per provisional data available on the NSE.
Fund flow picture
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting delivery of the stock, which means that investors are bullish on it.
61 stocks saw a long buildup
66 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
43 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.
29 stocks saw long unwinding
Bulk Deals on February 25
Avadh Sugar & Energy: Life Insurance Corporation (Scheme 5) sold 58,259 shares of the company at Rs 475.83 per share on the NSE.
NALCO: ICICI Prudential Mutual Fund - BHARAT 22 ETF sold 1,24,12,768 shares of the company at Rs 48.03 per share.
Viji Finance: Vijay Kothari sold 7,51,650 shares of the company at 70 paise per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Bharti Airtel: Board meeting is scheduled on February 28 to consider (i) the recommendations of 'Special Committee of Directors for Fund Raising' and; (ii) the proposal for raising of funds by issue of equity shares, bonds/debentures or other securities including through qualified institutions placement, rights issue, preferential issue or through any other permissible mode or a combination thereof.
Mahindra & Mahindra Financial Services: Company's officials will meet Aditya Birla Sun Life AMC on February 27.
Tube Investments of India: Company's officials will meet analysts/investors on February 26 and 27.
Corporation Bank: Extraordinary General Meeting of the shareholders of the bank to be held on March 27, 2019.
Generic Pharmasec: Board meeting will be held on February 28 to consider sub-division of equity shares (face value of Rs 10 per share) of the company.
Stocks in news
Results on February 26: Richa Industries, Sanofi India, Elantas Beck, Shailja Commercial
Emco: Sanjay Bhatnagar tenders his resignation as Independent Director and resigned from all memberships of committees of company.
Lupin: Company receives USFDA approval for Methylprednisolone tablets.
Mastek: IDFC AMC Limited (investment manager of IDFC Mutual Fund) through its various schemes additionally acquired equity shares in company to the extent of 0.0225 percent which has resulted in holding upto 5.0223 percent of the paid up capital of the company.
HIL: India Ratings & Research assigned long term credit rating as AA- with stable outlook for loan facilities worth Rs 276 crore:
Lakshmi Vilas Bank: Brickwork Ratings India revised the rating from BBB+ to BBB- (Credit watch with Developing Implications) for unsecured redeemable non-convertible subordinated lower Tier II Bonds - Series VII (Option B) of Rs 50.50 crore.
Hi-Tech Gears: Vijay Mathur has tendered his resignation from the post of Chief Financial officer. However, he will continue to act as Senior General Manager (Finance). Dinesh Chand Sharma has been elevated to the post of Chief Financial Officer.
Corporation Bank: Board approved the proposal of capital raising plan to the extent of Rs 12,500 crore by way of either issue and allotment of equity shares on preferential basis or by way of additional tier 1 Bonds or Tier II Bonds or follow on public issue or rights issue or qualified institutions placement or issue and allotment of equity shares on preferential basis to Government of India or debt issue or in combination of these thereof.
Thermax: Company has entered into definitive agreement with Mutares Holding-24 AG, Germany and Balcke-Duerr GmbH, Germany, JV partners of Thermax SPX Energy Technologies Limited (TSPX) to acquire their shareholding in the TSPX a JV and subsidiary company in India. Post transfer of shares TSPX will become the wholly owned subsidiary of the company.
Sharda Motor Industries: Company has entered into the joint venture (JV) agreement with Eberspaecher Exhaust Technology International GmbH (EET) for business development of BS VI norms in commercial vehicle segment in India also. Board in principally agreed to the proposed demerger of the automobile seating business.
Bharti Airtel: Airtel and Ciena to build one of the world's largest photonic control plane networks in India for delivering ultra-fast data over 4G, 5G and FTTH. Network to span 130,000 kms and connect 4000+ towns across India.
Tejas Networks: Company launches world's first ultra-converged broadband product at Mobile World Congress, Barcelona.
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 February 26, Adani Enterprises, Adani Power, Allahabad Bank, IDBI Bank, Jet Airways and Reliance Power stocks are present in this list.Out of F&O ban: PC JewellerSubscribe 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.