Sneha Seth of Angel Broking said as the outstanding contracts in futures segment is heavy now, she would advise traders to lighten up their positions in index and prefer trading in individual counters for better risk reward ratio.
Late recovery helped the market close higher for the sixth consecutive session on March 18, but the Nifty50 failed to hold on to 11,500 levels due to some profit booking.
Positive Asian cues, and buying in banking and financials and FMCG stocks pushed the BSE Sensex 70.75 points higher to 38,095.07 while the Nifty50 climbed 35.35 points to 11,462.20 and formed Long-Legged Doji pattern on daily charts.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol that though weakness in the price action is looking apparent, bulls at this juncture appear to be in no mood to give up their bets as by the end of the day, the index closed in positive terrain, adding some gains to its kitty.
He said that the sell signal on the lower time frame charts accompanied with negative advance-decline ratio for the second day in a row is pointing towards creeping weakness in broader markets.
As far as Nifty options activities are concerned, fresh writing took place in 11,500-11,700 call options. On the other side, open interest addition was seen in 11,400 and 11,500 put options. Now, the maximum open interest concentration for March series is placed at 11,500 call and 11,000 put options.
"Since the beginning of the March series, we have been witnessing huge amount of long formation and now it seems we are long heavy. At present, around 11,500 is the immediate hurdle; whereas, 11,250-11,300 shall act as a support," Sneha Seth, Derivatives Analyst at Angel Broking said.
As the outstanding contracts in futures segment is heavy now, she would advise traders to lighten up their positions in index and prefer trading in individual counters for better risk reward ratio.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,462.20 on March 18. According to the Pivot charts, the key support level is placed at 11,406.4, followed by 11,350.6. If the index starts moving upward, key resistance levels to watch out are 11,524.1 and 11,586.
The Nifty Bank index closed at 29,596.10, up 214.65 points on March 18. The important Pivot level, which will act as crucial support for the index, is placed at 29,367.86, followed by 29,139.63. On the upside, key resistance levels are placed at 29,818.16, followed by 30,040.23.
Call options data
Maximum Call open interest (OI) of 25.39 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the March series.
This was followed by the 11,600 strike price, which now holds 20.18 lakh contracts in open interest, and 11,700, which has accumulated 16.54 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,600, which added 6.53 lakh contracts, followed by 11,700 strike, which added 4.44 lakh contracts, and 11,500 strike, which added 1.93 lakh contracts.
Call unwinding was seen at the strike price of 11,400 that shed 4.37 lakh contracts, followed by 11,300 strike that shed 4.16 lakh contracts and 11,000 strike, which shed 1.08 lakh contracts.
Put options data
Maximum Put open interest of 38.26 lakh contracts was seen at the 11,000 strike price. This will act as a crucial support level for the March series.
This was followed by the 11,300 strike price, which now holds 23.64 lakh contracts in open interest, and the 11,200 strike price, which has now accumulated 21.33 lakh contracts in open interest.
Put writing was seen at the strike price of 11,500, which added 3.41 lakh contracts, followed by 11,400 strike that added 2.6 lakh contracts and 11,600 strike that added 0.57 lakh contracts.
Put unwinding was seen at the strike price of 11,200, which shed 4.79 lakh contracts, followed by 11,100 strike, that shed 3.36 lakh contracts and 11,300 strike, which shed 1.35 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 1,822.99 crore while Domestic Institutional Investors (DIIs) sold Rs 1,268.91 crore worth of shares in the Indian equity market on March 18, as per provisional data available on the NSE.
Fund flow picture
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.
72 stocks saw a long buildup
52 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
52 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.
22 stocks saw long unwinding
Bulk Deals on March 18
DHFL: PGGM World Equity BV bought 25,16,898 shares of the company at Rs 136.55 per share
Mindpool Technologies: Keyur Bipinkumar Shah purchased 24,000 shares of the company at Rs 16.5 per share
Reliance Communications: IndusInd Bank Client A/C sold 2,76,05,034 shares of the company at Rs 4.04 per share.
Reliance Infrastructure: PGGM World Equity BV bought 14,60,946 shares of the company at Rs 135.93 per share.
Suumaya Lifestyle: Newedge Vinimay Private Limited sold 3,20,000 shares of the company at Rs 29.9 per share.
Bharti Infratel: Bharti Airtel subsidiary Nettle Infrastructure Investments Limited bought 16 crore shares of the company at Rs 316.80 from Bharti Airtel.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
The New India Assurance Company: Board meeting is scheduled on March 27 to consider general matters of the company.
BEML: Board meeting is scheduled on March 21 to consider the interim dividend for the financial year 2018-19 on equity shares.
Aster DM Healthcare: Company is participating in the Kotak India Investment Forum being held at Singapore on March 19, where meetings shall be held with various investors/analysts.
PI Industries: Meeting with investor namely Canara HSBC Life Insurance is scheduled to be held on March 19.
Tata Chemicals: Company's officials will meet NVS Brokerage Pvt. Ltd. on March 19.
Allahabad Bank: Board meeting is scheduled on March 26 to consider capital raising plan.
Mahindra Logistics: Group Meeting (warehouse site visit) with various Institutional Investors is scheduled to be held on March 19.
Emmbi Industries: Company's officials will meet TrustLine Holdings on March 19 in Mumbai.
Aarti Industries: Board meeting is scheduled on March 22 to consider the issue price for equity shares to be allotted to the qualified institutional buyers in the proposed Issue, including a discount, if any.
Stocks in news
Orbit Exports: Board approved the buy-back of fully paid up equity shares for an amount upto Rs 10 crore at a price upto Rs 130 per share.
Vakrangee: RBI renews the authorization issued to company for White Label ATMs
Aegis Logistics: Board approved interim dividend of 50 paise on equity shares of face value of Re 1 each.
Reliance Communications: The agreements dated December 28, 2017 and August 11, 2018 entered into between company, RTL, RITL (RCOM Group) and Reliance Jio respectively for sale of certain specified telecom assets have been terminated today by mutual agreement.
Reliance Communications: Company made payment of Rs 458 crore to Ericsson as per Supreme Court orders - CNBC-TV18.
Aarti Industries: Board approved raising of funds by way of issue of equity shares, through, a QIP.
Amines & Plasticizers: ICRA assigned long term rating at BBB+ and outlook positive to company's bank loan facilities.
Majesco: Company acquired insurance software business in India issued by Majesco, USA, subsidiary company.
IL&FS Transportation Networks: Company defaulted in payment of principal and interest due on non-convertible debentures.
Hotel Leelaventure: Company to sell its hospitality & hotel operations business on slump sale basis to Brookfield.
RattanIndia Infrastructure: Vikas Adukia is appointed as the Chief Financial Officer of the company.
Adani Ports: Board approved the buyback of 14,000 non-convertible debentures (NCDs) aggregating to Rs 1,400 crore from the existing debenture holders in one or more tranche through negotiated deals.
FIEM Industries: Company declares interim dividend of Rs 8 per share for the financial year 2018-19.
Pidilite Industries: Chief financial officer P Ganesh resigned.
Canara Bank: Bank plans to raise long term foreign currency funds by issuing Senior Unsecured Bonds in the international markets to the extent of $500 million.
Emami: SAT quashes SEBI order against company - CNBC-TV18.
L&T, Mindtree: L&T signs deal to buy VG Siddhartha’s entire stake in Mindtree for Rs 981 per share: CNBC-TV18 sources.
Seven 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 March 19, Adani Enterprises, BEML, IDBI Bank, Jet Airways, Just Dial, Reliance Capital and Reliance Power are present in this list.Disclaimer: Reliance Industries Ltd., which owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.