Shabbir Kayyumi of Narnolia Financial Advisors expects markets to trade with higher volatility in a tight range of 10,760-10,888 levels.
The market snapped a four-day winning streak and closed sharply lower on February 26 amid geopolitical tensions after a surprise air strike by Indian Air Force on terror camps in Pakistan.
The 30-share BSE Sensex closed below psychological 36,000 levels, falling 239.67 points to 35,973.71. The weak global cues also dented market sentiment.
The Nifty 50 ended off day's low at 10,835.30, down 44.80 points, but formed bullish candle on the daily charts as closing value is higher than opening levels.
"Market recovered sharply from 50 percent retracement levels of the previous swing after it slipped in the morning session and closed above 20 DMA placed around 10,828 levels," Shabbir Kayyumi, Head - Technical & Derivative Research at Narnolia Financial Advisors told Moneycontrol.
He expects markets to trade with higher volatility in a tight range of 10,760-10,888 levels.
Moreover, any decisive move above Tuesday's high trading around 10,888 will push the index higher towards 11,000 levels, while a close below the strong support of 10,760 will give the upper hand to bears, Shabbir said.
Nagaraj Shetti, Technical Research Analyst at HDFC securities also expects the short term trend of Nifty to be volatile.
The broader markets also recovered from day's low to end marginally lower. The Nifty Midcap index lost 0.14 percent. The sectoral indices were mixed at the close.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 10,835.30 on February 26. According to Pivot charts, the key support level is placed at 10,746.8, followed by 10,658.3. If the index starts moving upward, key resistance levels to watch out are 10,906.3 and then 10,977.3.
The Nifty Bank index closed at 26,952.95, down 206.30 points on February 26. The important Pivot level, which will act as crucial support for the index, is placed at 26,750.6, followed by 26,548.3. On the upside, key resistance levels are placed at 27,141.2, followed by 27,329.5.
Call options data
Maximum Call open interest (OI) of 43.05 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 10,900 strike price, which now holds 26.70 lakh contracts in open interest, and 11,200, which has accumulated 22.85 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,000, which added 4.64 lakh contracts, followed by 10,900 strike which added 2.26 lakh contracts.
Call unwinding was seen at the strike price of 11,100 that shed 3.5 lakh contracts, followed by 10,700 strike that shed 1.6 lakh contracts and 10,800 strike that shed 1.48 lakh contracts.
Put options data
Maximum Put open interest of 29.20 lakh contracts was seen at the 10,400 strike price. This will act as a crucial support level for the February series.
This was followed by the 10,500 strike price, which now holds 28.35 lakh contracts in open interest, and the 10,800 strike price, which has now accumulated 26.08 lakh contracts in open interest.
Put writing was seen at the strike price of 10,300 which added 3.18 lakh contracts, followed by 10,500 strike that added 2.74 lakh contracts.
Put unwinding was seen at the strike price of 10,700 that shed 10.08 lakh contracts, followed by 10,800 strike that shed 8.16 lakh contracts and 10,900 strike which shed 4.3 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 1,674.17 crore while Domestic Institutional Investors sold Rs 720.27 crore worth of shares in the Indian equity market on February 26, 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.
27 stocks saw a long buildup
51 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
48 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.
71 stocks saw long unwinding
Bulk Deals on February 26
Gujarat Raffia-Roll: Virtue Ceramics Private Limited bought 25,000 shares of the company at Rs 14.45 per share on the NSE.
Sintercom India: Bellwether Capital Private Limited purchased 1,34,000 shares of the company at Rs 59.34 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Allcargo Logistics: Analyst/Institutional investor meeting is scheduled to be held on February 27.
Voltas: Company's officials will meet Alquity Funds on February 27.
Cummins India: Company's officials will meet analysts/investors on February 28.
Union Bank of India: Extraordinary general meeting of the shareholders to be held on March 26.
Cera Sanitaryware: Extra-ordinary general meeting is scheduled to be held on May 15.
Ambuja Cements: Company's officials will meet GIC (P) Singapore on February 27.
Andhra Bank: Extraordinary General Meeting of the bank is scheduled to be held on March 22.
Mayur Floorings: Board meeting is scheduled on March 7 to consider the approval of bank loan and disposal of fixed assets of erstwhile marble and granite processing machinery due to discontinuation of business.
Tide Water Oil (India): Board meeting is scheduled on March 14 to consider payment of 2nd interim dividend for the year 2018-19.
Stocks in news
Results on February 27: Metalyst Forgings, Nitin Fire Protection, Rain Industries, Vesuvius India, KSB, Merck.
Max India: Board approves selling 51 percent stake in Max Bupa Health Insurance for Rs 510 crore to True North. Enterprise value Rs 1,001 crore and company to complete Max Bupa stake sale in FY20.
BSE Limited: SP Kothari resigns as shareholder director to join Securities Exchange Commission, Washington.
PSU Banks: RBI removes Allahabad Bank, Corporation Bank and Dhanlaxmi Bank from Prompt Corrective Action framework.
Greycells Education: American University of Ras Al-Khaimah (AURAK) has entered into a partnership with EMDI - Dubai, a wholly owned subsidiary of the company.
Future Retail: CARE reaffirmed A1+ rating for company's commercial paper.
MCX: Board of directors recommended the name of P S Reddy as the MD & CEO and a KMP of the Exchange to SEBI for seeking its approval.
Central Bank of India: Capital Raising Committee of the bank approved raising of equity capital by issuance and allotment of, upto 68,72,48,322 equity shares at the issue price of Rs 37.25 per share, aggregating to Rs 2,560 crore to government on preferential basis.
GMR Infrastructure: GMR Airports emerges as the highest bidder for greenfield airport at Bhogapuram in Andhra Pradesh.
ONGC: Its arm, Mozambique partners in LNG pact with Tokyo Gas & others.
IFCI: CARE cuts company's long term rating to BBB and downgraded NCD ratings to A- from ABBB+.
MRF: Workers call off strike at Chennai’s Tiruvottiyur plant.
Unichem Labs: Company filed plea with European Union court of justice versus general court order which upheld fine on company in Perindropil case.
Tata Steel: Board approves raising fund up to Rs 5,000 crore via NCDs.
Majesco: Company completed its previously announced rights offering pursuant to which 6,123,463 shares of Majesco's common stock will be issued, resulting in gross proceeds to Majesco of approximately $43.5 million.United Bank of India: CRISIL has downgraded its ratings from A to A- / Stable for Rs 300 crore Tier I perpetual bonds (under BASELII), from AA- to
A+ / Stable for Rs 209 crore lower Tier II bonds (under BASELII) and from AA- to A+ / Stable for Rs 1,490 crore Tier II Bonds (under BASELIII).
Bank of Maharashtra: Board approved the proposal of raising of equity capital upto Rs 205 crore by way of issue of equity shares to Government on preferential basis.
Panacea Biotec: Board approved one time settlement with the consortium of lenders of the company; raising of funds through issue of listed/unlisted, secured/unsecured redeemable non-convertible debentures, aggregating upto Rs 864 crore; demerger of real estate business; raising of funds through issue of warrants by issuing up to 71,11,111 warrants of Rs 180 each, exercisable into equal number of equity shares of face value of Re 1 each of the company on a preferential basis amounting upto Rs 128 crore; and transfer of the pharmaceutical formulations business to a wholly owned subsidiary (to be incorporated), as a going concern.
Time Technoplast: Company and Confidence Petroleum India joined hands to give new thrust for making LPG available across India in blast proof composite cylinders.
Bharat Financial Inclusion: Company assigned a pool of receivables of an aggregate value of Rs 1,217.80 crore to one of the largest private sector banks on a direct assignment basis. With this transaction, the company has completed Direct Assignment transactions worth Rs 6,666.20 crore in FY19.
Share India Securities: Board approved the migration of the company from BSE SME platform to Main Board of BSE Ltd.
Sanofi India December Quarter: Profit rises to Rs 79.3 crore versus Rs 76 crore; revenue jumps to Rs 726.4 crore versus Rs 670.4 crore YoY. Board of Directors approved recommendation for payment of final dividend of Rs 66 per share for the year ended December 2018.
Maruti Suzuki: Company and Delhi Police joined hands for launch of automated red light violation detection and speed violation detection system.
HDFC Asset Management Company: Board approved payment of interim dividend of Rs 12 per share of Rs 5 each for the financial year ending March 2019.
Elantas Beck India Q3: Profit increases to Rs 14.35 crore versus Rs 14.15 crore; revenue rises to Rs 111 crore versus Rs 98.83 crore YoY. Board recommended payment of dividend of Rs 4.50 per share of Rs 10 each for the year 2018.
Action Construction Equipment: National Company Law Tribunal approved the Scheme of Amalgamation.
Indian Overseas Bank: Board approved the issue of equity shares on preferential basis to government for the capital infusion of Rs 3,806 crore received for financial year 2018-19.
Monte Carlo Fashions: Special resolution passed by the shareholders through postal ballot approving the buy-back of equity shares.
S Chand and Company: Company along with subsidiary Eurasia Publishing House acquired the remaining stake of 26 percent in Chhaya Prakashani and Chhaya has become the wholly owned subsidiary of the company.
Union Bank of India: Board of Directors approved the issue of 52,15,62,658 new equity shares on preferential basis to the government for an amount aggregating upto Rs 4,112 crore.Wipro: NSE said on account of bonus issue in the ratio of 1:3, the adjustment factor for the corporate action shall be 1.3333 and the ex-date for the
corporate action shall be March 6.
Five 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 27, Adani Enterprises, Adani Power, IDBI Bank, Jet Airways and Reliance Power stocks are present in this list.Out of F&O ban: Allahabad Bank.Subscribe 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.