Shabbir Kayyumi of Narnolia Financial Advisors says sustained trade above 200-DMA (10,860) will resume the upmove taking the index higher towards immediate resistance zone of 10,980-11,000.
The market rallied on the first day of March series and helped close the week ending March 1 on a positive note on de-escalation of India-Pakistan border conflict and hope of trade deal between the US and China.
The 30-share BSE Sensex climbed 196.37 points to 36,063.81 as the Nifty50 advanced 71 points to 10,863.50 and formed bullish candle on daily as well as weekly charts. For the week, the indices gained 0.5 percent and 0.7 percent, respectively.
The Nifty has been trading in a tight range of 10,930-10,600 for last three months, whereby it has to surpass crucial resistance of 10,930 for heading north on the closing basis, experts said. RSI is placed above 50, suggesting a better possibility of higher closing in the coming week, they added.
"Market is trading around its three major simple moving averages 20-DMA, 50-DMA and 200-DMA that are placed between 10,825-10,860, suggesting strong resistance zone on the higher side," Shabbir Kayyumi, Head - Technical and Derivative Research at Narnolia Financial Advisors told Moneycontrol.
He said sustained trade above 200-DMA (10,860) will resume the up move taking the index higher towards immediate resistance zone of 10,980-11,000.
Moreover, a close below the strong support (10,640) will push prices lower towards 10,550, he added.
All sectoral indices closed higher with PSU Bank (up 2.6 percent) and Metal (1.8 percent) rising the most. The Nifty Midcap (up 1.44 percent) and Smallcap indices (up 2.7 percent) outperformed benchmark indices.
The market was shut on March 4 (Monday) for Mahashivratri.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,863.50 on March 1. According to Pivot charts, the key support level is placed at 10,831.77, followed by 10,800.03. If the index starts moving upward, key resistance levels to watch out are 10,886.57 and 10,909.63.
The Nifty Bank index closed at 27,043.90, up 254 points on March 1. The important Pivot level, which will act as crucial support for the index, is placed at 26,956.33, followed by 26,868.77. On the upside, key resistance levels are placed at 27,104.03, followed by 27,164.17.
Call options data
Maximum Call open interest (OI) of 18.83 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the March series.
This was followed by the 10,900 strike price, which now holds 13.10 lakh contracts in open interest, and 11,200, which has accumulated 12.72 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,000, which added 3 lakh contracts, followed by 11,400 strike, which added 2.74 lakh contracts and 11,300 strike that added 1.61 lakh contracts.
Call unwinding was seen at the strike price of 10,800 that shed 0.84 lakh contracts, followed by 10,700 strike that shed 0.22 lakh contracts.
Put options data
Maximum Put open interest of 25.21 lakh contracts was seen at the 10,700 strike price. This will act as a crucial support level for the March series.
This was followed by the 10,600 strike price, which now holds 25.15 lakh contracts in open interest, and the 10,500 strike price, which has now accumulated 21.74 lakh contracts in open interest.
Put writing was seen at the strike price of 10,900, which added 2.75 lakh contracts, followed by 10,800 strike that added 2.42 lakh contracts and 10,400 strike that added 2.09 lakh contracts.
There was hardly any Put unwinding seen.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 198.38 crore and Domestic Institutional Investors purchased Rs 117.05 crore worth of shares in the Indian equity market on March 1, 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.
135 stocks saw a long buildup
34 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
26 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.
4 stocks saw long unwinding
Bulk Deals on March 01
BL Kashyap and Sons: Virwani Jitendra Mohandas sold 11,64,292 shares of the company at Rs 21.42 per share.
Nagarjuna Oil Refinery: Zuari Investments sold 32,69,026 shares of the company at 30 paise per share.
Proseed India: Krishnam Raju M sold 5 lakh shares of the company at 42 paise per share.
Anup Engineering: Enam Asset Management Company sold 54,787 shares of the company at Rs 472.5 per share.
Tourism Finance Corporation: Rajasthan Global Securities sold 5,44,634 shares of the company at Rs 118.62 per share.
Viji Finance: Vijay Kothari sold 5,61,417 shares of the company at 70 paise per share.
Aavas Financiers: Matthews International Funds bought 4,04,915 shares of the company at Rs 1,070.10 per share and Amundi Funds SBI FM Equity India sold 4,47,963 shares of the company at same price.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Meghmani Organics: Company, on March 8, will consider and approve interim dividend on the equity shares of the company for the financial year 2018-19.
Tata Metaliks: Extraordinary General Meeting of the shareholders to be held on March 25.
Xpro India: Board meeting is scheduled on March 8 to consider strategies and opportunities for the company's Biax Unit - I at Barjora and to approve a course of action including, if considered appropriate, sale/transfer of the company's Biax Unit - I at Barjora and the obtaining of necessary enabling approvals.
Excel Crop Care: Extraordinary General Meeting of the shareholders to be held on March 30.
Prabhat Dairy: Extraordinary General Meeting of the shareholders will be held on March 26.
Corporation Bank: Extraordinary General Meeting of shareholders of the bank to be held on March 27.
UCO Bank: Extraordinary General Meeting of shareholders of the bank to be held on March 25.
The Investment Trust of India: Board meeting is scheduled on March 7 to consider the scheme of amalgamation of ITI Reinsurance Limited with the company.
Sheela Foam: Officials of the company will be meeting with various investors on March 5 in Mumbai.
Allahabad Bank: EGM of shareholders of the bank scheduled to be held on March 26, 2019.
Tata Steel: Company's officials will meet Trinity Alps Capital and Rare Enterprises on March 6.
Brigade Enterprises: Company's officials will meet investors on March 5 in Hong Kong.
R Systems International: Investors/analysts call of the company will be held on March 5 to discuss the financial results of the company for the quarter and year ended on December 2018.
PI Industries: Company's officials will meet Phillip Capital (India) on March 7, Motilal Oswal on March 14 and India Capital Growth Fund (ICGQ) on March 14.
Usha Martin: Extraordinary General Meeting of the company to be held on March 30.
Hindustan Fluorocarbons: Board meeting is scheduled on March 11 to consider the sale of 66 acres 13 gunthas vacant surplus land, and entering the agreement with MSTC E-auction.
Valecha Engineering: Board meeting to be held on March 11 to consider the issue of debt securities.
Shriram City Union Finance: Company's officials will meet Motilal Oswal Securities and ICICI Securities on March 7, and Motilal Oswal Securities on March 9.
Stocks in news
Jet Airways: An additional four aircraft have been grounded due to non-payment of amounts outstanding to lessors under their respective lease agreements.
Reliance Industries: Subsidiary Reliance Industrial Investments and Holdings Limited (RIIHL) acquired software company C-Square Info Solutions Private Limited and logistics services platform company Grab A Grub Services Private Limited.
Hindustan Zinc: Kiran Agarwal is appointed as Additional Director and Chairman of the company.
JSW Steel: Company and Duferco International Trading Holding SA aligned their strategic goals in a landmark $700 million 5-year advance payment and supply agreement (APSA).
Kolte-Patil Developers: Company invests Rs 70 crore in its subsidiary Kolte-Patil I-Ven Townships (Pune) Ltd.
Capacite Infraprojects: Board approved Scheme of Amalgamation amongst CIPL-PPSL-Yongnam Joint Venture Constructions Private Limited, company and their respective shareholders.
Indian Hume Pipe: Company received three letters of intent for the works aggregating to Rs 187.06 crore from Vidarbha Irrigation Development Corporation, Nagpur.
Mishra Dhatu Nigam: Company secured an order worth about Rs 475 crore. The cumulative order booking during the financial year 2018-19 is about Rs 1,800 crore.
Union Bank of India: Stakeholders Relationship Committee (SRC) of the bank approved issue price of Rs 58.49 per share for new equity shares to be issued to the eligible employees of the bank under Union Bank of India Employee Share Purchase Scheme (Union Bank - ESPS). The offer will open for subscription by eligible employees on March 7 and will close on March 16.
Equitas Holdings: CRISIL revised the outlook on long-term facilities rating of subsidiary, Equitas Small Finance Bank Limited from A/Stable to A/Positive.
IRB Infrastructure Developers: Company successfully completed Hyderabad Outer Ring Road project and accordingly handed over the project to Hyderabad Growth Corridor Limited.
Aurobindo Pharma: Company completed the acquisition of seven marketed oncology injectable products, intellectual property and commercial infrastructure from US-based Spectrum Pharmaceuticals.
Snowman Logistics: Company appointed Mamoru Yokoo as an Additional Director of the company.
Take Solutions: Company announced mergers of step-down subsidiaries in the US.
Coal India: February coal production up 6.5 percent at 58.05 million tonne, April-February FY19 coal production rises 6.6 percent to 527.70 million tonne YoY. February offtake up 3 percent at 51.45 million tonne and April-February offtake increases 4.5 percent to 548.49 million tonne YoY.
Hero Motocorp: February sales fall 2 percent to 6,17,215 units YoY.
Sunteck Realty: Company issued commercial paper of Rs 25 crore.
Tata Motors: On a media report saying Tata to explore options including JLR stake sale, the company clarified that there is no truth to the rumours that Tata Motors is looking to divest its stake in JLR and it would not like to comment further on any market speculation.
Biocon: Company appoints Dr Christiane Hamacher as CEO of Biocon Biologics India Limited.
Nucleus Software Exports: Board approved a scheme of amalgamation between wholly-owned subsidiaries, Virstra I-Technology Services Limited and Avon Mobility Solutions Private Limited and the company.
HT Media: Company has entered into share purchase agreements with the shareholders of NRL (the subsidiary of Next Mediaworks Limited), to purchase 3,68,08,001 equity shares (constituting 48.6 percent stake) in NRL.
Dr Lal PathLabs: Company received an intimation from Arun Duggal, Independent Director, tendering his resignation.
VST Tillers Tractors: February sales dip to 2,076 units versus 3,478 units YoY.
KEI Industries: CARE reaffirmed CGR 3+ rating assigned to the corporate governance practices adopted by the company.
Steel Strips Wheels: Company achieved February 2019 total wheel rim sales of 12.83 lakh versus 13.03 lakh in February 2018 representing a de-growth of 1 percent YoY.
Medico Remedies: Company purchased adjoining manufacturing unit at Palghar.
Cochin Shipyard: Company signed contracts with Utkarsh Advisory Services Private Limited, Mumbai, (part of JSW group) for construction and delivery of 4 Nos. 8000 T mini bulk carriers.
Shivam Autotech: Company has achieved approximately 29 percent increase in sales in February 2019 compared to the corresponding month in the previous financial year.
Lakshmi Machine Works: The company received a communication from LIC of India for withdrawal of nomination of V Sathyakumar, Nominee Director of LIC and filing of fresh nomination for appointing Anil Gupta as Nominee Director of LIC on the board of directors of the company.
Aster DM Healthcare: Company increased its shareholding in subsidiary Malabar Institute of Medical Sciences Limited to 73.22 percent from 70.68 percent earlier and in Prerana Hospital Limited to 84.93 percent from 80.80 percent earlier.
Tata Motors: February sales drop 3 percent to 57,221 units versus 58,993 units YoY.
TVS Motor Company: Company registered a growth of 3 percent with sales increasing from 2,90,673 units in February 2018 to 2,99,353 units in February 2019.
Eicher Motors: Royal Enfield sales in February fell 14 percent to 62,630 units versus 73,077 units YoY.
No stock 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 March 5, not a single stock is present in this list.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.