Rohit Singre of LKP Securities said index managed to close above strong hurdle of 11,650 zone suggesting some short covering move towards 11,710-11,755 zone.
The market gained momentum after rangebound trade in the last few sessions to close higher for the second straight day on July 16 driven by banking & financials, auto, healthcare and energy stocks.
The BSE Sensex rallied 234.33 points to 39,131.04 while the Nifty 50 climbed 74.20 points to 11,662.60, forming a bullish candle on the daily scale.
"A long bull candle was formed, that has closed just above the key overhead resistance of 11,650 levels (resistance as per the concept of change in polarity). The Nifty needs to sustain and move decisively above this resistance area in the short term to consider further strength in an upside bounce," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
According to him, if the Nifty fails to sustain above 11,650 level in the next couple of sessions, then one can expect a sharp fall from the highs.
Rohit Singre, Senior Technical Analyst at LKP Securities also said the index managed to close above a strong hurdle of 11,650-zone suggesting some short-covering move towards 11,710-11,755.
The Nifty Midcap index marginally outperformed Nifty 50, rising 0.75 percent but Smallcap index closed flat.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,662.60 on July 16. According to the pivot charts, the key support level is placed at 11,601.07, followed by 11,539.53. If the index starts moving upward, the key resistance levels to watch out are 11,697.07 and 11,731.53.
The Nifty Bank closed at 30,570.80, up 124.85 points on July 16. The important pivot level, which will act as crucial support for the index, is placed at 30,455.47, followed by 30,340.13. On the upside, key resistance levels are placed at 30,660.57, followed by 30,750.33.
Call options data
Maximum Call open interest (OI) of 32.24 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.
This is followed by 11,800 strike price, which now holds 17.79 lakh contracts in open interest, and 11,700, which has accumulated 17.06 lakh contracts in open interest.
Significant Call writing was seen at the 11,700 strike price, which added 0.75 lakh contracts, followed by an 11,800 strike price, which added 0.63 lakh contracts.
Call unwinding was seen at 11,600 strike, which shed 1.49 lakh contracts, followed by 11,500 strike, which shed 1.25 lakh contracts.
Put options data
Maximum Put open interest of 23.56 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for the July series.
This is followed by an 11,500 strike price, which now holds 22.33 lakh contracts in open interest and 11,600 strike price, which has now accumulated 20.84 lakh contracts in open interest.
Put writing was seen at 11,600 strike price, which added 6.1 lakh contracts, followed by 11,500 strike which added 1.84 lakh contracts and 11,700 strike, which added 1.05 lakh contracts.
Put unwinding was seen at the 11,400 strike price, which shed 2.61 lakh contracts, followed by 11,200 strike that shed 1.55 lakh contracts and 11,100 strike price which shed 1.32 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on it.
64 stocks saw a long buildup
67 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
23 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.
8 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Bharat Gears: Company will announce its June quarter earnings on August 6.
Bharti Airtel: Company will announce its June quarter earnings on August 1.
Orient Paper & Industries: Company will announce its June quarter earnings on August 1.
Thangamayil Jewellery: Company will announce its June quarter earnings on August 1.
Mahindra CIE Automotive: Q2CY19 results conference call to be held on July 22.
Monnet Ispat & Energy: Company will announce its June quarter earnings on July 24.
Sharda Cropchem: Company will announce its June quarter earnings on July 24.
Chambal Fertilisers: Company will announce its June quarter earnings on August 10.
Lemon Tree Hotels: Company will announce its June quarter earnings on August 7.
Ceat: Company will announce its June quarter earnings on August 1.
Deepak Nitrite: Company will announce its June quarter earnings on August 2.
GE Power India: Company will announce its June quarter earnings on July 23.
Music Broadcast: Company will announce its June quarter earnings on July 26.
TeamLease Services: Company will announce its June quarter earnings on July 26.
South Indian Bank: Company will announce its June quarter earnings on July 25.
Stocks in news
Results on July 17: Wipro, Yes Bank, Mindtree, Menon Bearings, DFM Foods, Dhanlaxmi Bank, Aditya Birla Money, Tata Elxsi, SEL Manufacturing Company.
DCB Bank Q1: Profit grows 16.6 percent to Rs 81.1 crore versus Rs 69.5 crore and NII rises 11.7 percent to Rs 304.7 crore versus Rs 272.9 crore YoY; gross NPA at 1.96 percent versus 1.84 percent and net NPA at 0.81 percent versus 0.65 percent QoQ.
MCX Q1: Consolidated net profit jumps to Rs 43.7 crore versus Rs 7.3 crore (There was an exceptional loss of Rs 23.8 crore in Q1FY19), revenue rises 9.1 percent to Rs 79.4 crore versus Rs 72.8 crore YoY.
Jay Bharat Maruti Q1: Consolidated profit falls to Rs 7.85 crore versus Rs 13.44 crore; revenue dips to Rs 443 crore versus Rs 506 crore YoY.
5paisa Capital Q1: Consolidated loss at Rs 0.52 crore versus loss Rs 6.09 crore; revenue jumps to Rs 22.86 crore versus Rs 8.97 crore YoY.
5paisa Capital: Rights issue of Rs 101.9 crore will open during July 23 and August 6.
BHEL: A contract to construct a raw material handling system at NMDC's under construction integrated steel plant, Nagarnar, Chhattisgarh is being executed by BHEL-ISG Bengaluru division. The company received a notice of termination from NMDC for this contract. BHEL proposes to take up the matter through the redressal mechanism available for disputes resolution between CPSEs.
Punjab & Sind Bank: Bank set lending rate for 1-year tenor at 8.70 percent from July 16.
IL&FS Engineering: Company received a resignation letter from auditor BSR & Associates due to non-payment of audit fees.
InterGlobe Aviation: Ministry of Corporate Affairs seeks comments from IndiGo on recent promoters' differences and claims of corporate governance lapse raised by Rakesh Gangwal.
Manaksia: Company appointed Bharat Begwani as Chief Financial Officer.
Astron Paper & Board Mill: Unit-1 in Halvad, Gujarat) will be shut during July 16-20 for scheduled preventive maintenance of boiler/power plant.
Unitech: Internal auditor SKP & Co resigned.
Suzlon Energy: Company has not paid the principal of $172 million due on bonds. It is working on a holistic solution on debt obligations and in talks with stakeholders.
KNR Constructions: Company received orders worth of Rs 847.34 crore from Navayuga Engineering Company.
Sadbhav Infrastructure: April-June period toll revenues rise 2.3 percent to Rs 280 crore YoY.
KRBL: CARE placed the company's commercial papers worth Rs 700 crore under credit watch with negative implications.
Quick Heal Technologies: Company appointed Amitabha Mukhopadhyay as Independent Director for a term of 5 years.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 444.99 crore, but Domestic Institutional Investors (DIIs) bought Rs 637.71 crore worth of shares in the Indian equity market on July 16, as per provisional data available on the NSE.
Fund Flow Picture
Three stocks under F&O ban period on NSE
For July 17, DHFL, Reliance Capital and Reliance Infrastructure are under the F&O ban period.
Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.Out of F&O Ban: IDBI Bank