Shabbir Kayyumi of Narnolia Financial Advisors said any decisive move above the psychological level of 11,000 will push the index towards 11,118.
Led by gains in auto and banking stocks, benchmark indices on March 5 ended over 1 percent higher.
The 30-share BSE Sensex surged 378.73 points to end at 36,442.54 while Nifty50 ended 124 points higher at 10,987.50.
"The Nifty index closed above 200 DMA & all short term moving averages. It has managed to sustain above 61.8 percent retracement levels of the previous swing which is placed around 10,915 levels indicating prices can extend further towards the recent high of 11,118 levels," Shabbir Kayyumi, Head - Technical and Derivative Research at Narnolia Financial Advisors, told Moneycontrol.
He expects markets to trade higher unless it breaches 10,915 decisively on the lower side. Any decisive move above the psychological level of 11,000 will push the index higher towards 11,118 levels, he said.
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.
The broader markets continued to hogged the limelight with the Midcap and Smallcap indices rallying 2.4 percent and 4 percent respectively, following strong breadth.
"The market breadth has improved on the back of the market participants sensing the possibility of the incumbent government retaining power, which naturally provides policy stability," Devang Mehta, Head – Equity Advisory at Centrum Wealth Management said.
All sectoral indices closed in the green, barring IT, which fell over a percent.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,987.45 on March 5. According to Pivot charts, the key support level is placed at 10,871.37, followed by 10,755.23. If the index starts moving upward, key resistance levels to watch out are 11,049.27 and 11,111.03.
The Nifty Bank index closed at 27,554.05, up 510.15 points on March 5. The important Pivot level, which will act as crucial support for the index, is placed at 27,147.87, followed by 26,741.63. On the upside, key resistance levels are placed at 27,770.57, followed by 27,987.04.
Call options data
Maximum Call open interest (OI) of 20.58 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 11,000 strike price, which now holds 18.12 lakh contracts in open interest, and 11,200, which has accumulated 14.56 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,500, which added 5.34 lakh contracts, followed by 11,100 strike, which added 3.46 lakh contracts and 11,300 strike that added 2.79 lakh contracts.
Call unwinding was seen at the strike price of 10,900 that shed 1.10 lakh contracts, followed by 11,000 strike that shed 0.70 lakh contracts.
Put options data
Maximum Put open interest of 22.40 lakh contracts was seen at the 10,600 strike price. This will act as a crucial support level for the March series.
This was followed by the 10,500 strike price, which now holds 22.17 lakh contracts in open interest, and the 11,000 strike price, which has now accumulated 21..83 lakh contracts in open interest.
Put writing was seen at the strike price of 10,900, which added 5.58 lakh contracts, followed by 10,800 strike that added 1.5 lakh contracts and 11,000 strike that added 1.48 lakh contracts.
Put unwinding was seen at the strike price of 10,700 that shed 4.74 lakh contracts, followed by 10,600 strike which shed 2.75 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 751.92 crore and Domestic Institutional Investors purchased Rs 580.86 crore worth of shares in the Indian equity market on March 5, 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.
124 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.
17 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.
7 stocks saw long unwinding
Bulk Deals on March 05
CESC Ventures: International New Discovery Fund sold 1,48,126 shares of the company at Rs 516.44 per share.
J Kumar Infraprojects: Capri Global Holdings Private Limited bought 4,50,000 shares of the company at Rs 148 per share.
PG Electroplast: Swing Infraspace Private Limited sold 94,705 shares of the company at Rs 78.61 per share.
SP Apparels: Edelweiss Multi Strategy Funds Management Pvt Ltd - Hexagon sold 1,68,205 shares of the company at Rs 253.22 per share.
Shalimar Paints: Meenakshi Gupta sold 4,78,900 shares of the company at Rs 65.22 per share.
Shree Pushkar Chemicals: Edelweiss Multi Strategy Funds Management Pvt Ltd - Hexagon sold 1,55,026 shares of the company at Rs 130.14 per share.
Spencer: MFS Emerging Markets Equity Fund sold 5,75,830 shares of the company at Rs 150.1 per share.
Surani Steel Tubes: Satyanarayan Jagannath Kabra sold 50,000 shares of the company at Rs 53.9 per share.
La Opala RG: Steadview Capital Mauritius Limited sold 7,53,715 shares of the company at Rs 200 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Arcotech: Extra-Ordinary general meeting to be held on March 29.
Cipla: Company's officials will meet Matthews India Fund, San Francisco on March 6 in Mumbai.
Sun TV Network: Board meeting is scheduled on March 8 to consider interim dividend if any, for the financial year 2018-19.
Mahindra & Mahindra: Company's officials will meet Aditya Birla Money on March 7, Quest Investment Advisors on March 13 and Janus Henderson on March 14 in Mumbai.
Jubilant Life Sciences: Management of the company will be meeting investor/ analysts in Mumbai on March 6.
Indostar Capital Finance: Company's officials will attend Prabhudas Liladhar Investor Conference on March 7, in Mumbai.
Tata Metaliks: Company's officials will meet Investors/ Analysts on March 6.
Lakshmi Vilas Bank: Board meeting is scheduled on March 8 to consider the raising of funds by way of issue of equity shares of the bank on preferential basis.
HUDCO: Board meeting is proposed to be held on March 12 to consider payment of interim dividend for the financial year 2018-19.
SREI Infrastructure Finance: Board will consider declaration of interim dividend on March 8. The record date is fixed as March 16.
KSB: Company's officials will attend investor conference on March 6.
ACC: Company's officials will meet Nomura Asset Management(Singapore) on March 6.
Titan Company: Company's officials will meet JPMorgan Asset Management (UK) Ltd & Blackrock International on March 6, and Nomura Asset Management on March 8.
NLC India: Board meeting is scheduled to be held on March 18 to consider declaration of interim dividend, if any, for the financial year 2018-19.
Pidilite Industries: Company's officials will meet JP Morgan Asset Management on March 8 and Axis Asset Management on March 11.
Stocks in news
Bharti Airtel: Airtel collaborates with Zoom to launch India's first high quality unified communications solution for businesses' issued by the company.
Karur Vysya Bank: Capital Raising Committee approved the information memorandum in relation to issue of BASEL III compliant Unsecured Non-convertible Tier II Bonds in the nature of debenture of Rs 1,00,000 each for a total approved borrowing programme of Rs 1,200 crore in one of more Tranches with present 'Tranche A' of Rs 300 crore with green shoe option of upto Rs 300 crore aggregating upto Rs 600 crore.
Newgen Software: Company receives patents from Indian Patent Office for its inventions.
Edelweiss Financial Services: CDPQ Private Equity Asia Pte Ltd, the subsidiary of North America-based pension fund manager, to invest over Rs 1,800 crore in ECL Finance Limited, the non-banking financial company (NBFC) arm of Edelweiss Group.
Bosch: Company announced an extinguishment of equity shares with respect to the buyback of 10,27,100 fully paid-up equity shares of face value of Rs 10 each.
Quick Heal Technologies: Board approved a proposal to buyback up to 63,63,636 equity shares of the company, being 9.02 percent of the total paid up equity, for an aggregate amount not exceeding Rs 175 crore, at a price of Rs 275 per share.
Jubilant Life Sciences: Subsidiary Jubilant Pharma (incorporated under the laws of Singapore) successfully completed the issuance of rated unsecured bonds (to institutional investors outside India. The Notes were issued at par in a principal amount of $200 million and will mature in March, 2024.
Endurance Technologies: Promoter Anurag Jain to sell up to 63,63,637 equity shares (representing 4.52 percent of the paid up equity) on March 6 and March 7 with an option to additionally sell up to 41,89,051 equity shares (representing 2.98 percent of the paid up equity) through Offer for Sale route.
Blue Star: Board appointed Shailesh Haribhakti, Independent Director as the Chairman, elevated Vir S Advani as Vice Chairman and his re-designation as Vice Chairman & Managing Director, and elevated B Thiagarajan to Managing Director of the company.The Investment Trust of India: Subsidiary ITI Alternate Funds Management Limited received a registration certificate from SEBI to act as Portfolio
Avenue Supermarts: Company issued commercial paper of Rs 50 crore.
Wipro: Stock will trade ex-bonus (1:3) from March 6. Revised market lot for Futures & Options contracts would be 3,200.
Sterlite Technologies: Company unveils TruRibbonTM - Ribbon Reinvented, a fully backward compatible cable built for high-capacity networks.
Two 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 6, Reliance Power and Wockhardt are present in this list.