Shabbir Kayyumi of Narnolia Financial Advisors said Nifty needs to trade decisively above 11,520 to confirm the end of the recent sharp fall.
The BSE Sensex rallied over 400 points on March 26, driven partly by short covering and positive global cues on easing recession fears. Index heavyweight Reliance Industries and banking & financials stocks rallied.
The BSE Sensex climbed 424.50 points or 1.12 percent to close at 38,233.41 after a correction in two straight previous sessions. The Nifty 50 surged 129 points or 1.14 percent to 11,483.30 and formed a bullish candle on daily charts.
"A long bull candle was formed that has filled the opening down gap of last session at 11,435 levels. Technically, this pattern is signaling a sharp comeback of bulls in the market," Nagaraj Shetti - Technical Research Analyst, HDFC Securities told Moneycontrol.
He said Monday's swing low of 11,311 levels could now be considered as a new higher bottom of the sequence. As per this pattern, one may expect Nifty to move up further and cross above the recent swing high of 11,572 levels in the next few sessions, according to him.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors said volume had been higher than Monday giving hope to bulls.
"Nifty needs to trade decisively above 11,520 to confirm the end of the recent sharp fall. Until then 11,310 is key trend decider on the lower side and 11,300-11,600 is the range for Nifty," he added.
The broader markets also gained a percent while all sectoral indices closed in the green barring Nifty IT.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,483.25 on March 26. According to the Pivot charts, the key support level is placed at 11,391.53, followed by 11,299.87. If the index starts moving upward, key resistance levels to watch out are 11,535.83 and 11,588.47.
The Nifty Bank index closed at 29,882.15, up 600.95 points on March 26. The important Pivot level, which will act as crucial support for the index, is placed at 29,457.07, followed by 29,031.93. On the upside, key resistance levels are placed at 30,128.77, followed by 30,375.33.
Call Options Data
Maximum Call open interest (OI) of 29.98 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 24.39 lakh contracts in open interest, and 11,700, which has accumulated 23.90 lakh contracts in open interest.
There was hardly any Call writing seen.
Call unwinding was seen at the strike price of 11,600 that shed 11.07 lakh contracts, followed by 11,400 strike that shed 8.23 lakh contracts and 11,500 strike, which shed 5.35 lakh contracts.
Put Options Data
Maximum Put open interest of 32.15 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 11,400 strike price, which now holds 30.06 lakh contracts in open interest, and the 11,300 strike price, which has now accumulated 26.48 lakh contracts in open interest.
Put writing was seen at the strike price of 11,400, which added 10.82 lakh contracts, followed by 11,500 strike that added 7.75 lakh contracts.
Put unwinding was seen at the strike price of 11,200, which shed 4.77 lakh contracts, followed by 11,000 strike that shed 2.86 lakh contracts and 12,000 strike that shed 1.53 lakh contracts.
FII & DII Data
Foreign Institutional Investors (FIIs) bought shares worth Rs 999.02 crore while Domestic Institutional Investors (DIIs) sold Rs 196.7 crore worth of shares in the Indian equity market on March 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 the delivery of the stock, which means that investors are bullish on it.
95 Stocks saw a long buildup
73 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
20 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.
10 stocks saw long unwinding
Bulk Deals on March 26
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Analyst or Board Meet/Briefings
Jyoti Resins & Adhesives: Board meeting is scheduled for March 29 to consider the re-appointment of Jagdish N Patel as Chairman and Managing Director of the company.
Shoppers Stop: One-on-one meeting with Resham Jain, CO-FM and Vinit Sambre, CIO of DSP Merrill Lynch has been scheduled on March 28.
NOCIL: Company's official will meet Motilal Oswal Financial Services Limited on March 27.
Gujarat Natural Resources: Board meeting is scheduled for March 29 to consider and approve the appointment of Hitesh Donga as a Chief Financial Officer of the company.
Eris Lifesciences: Company's officials will meet Fundsmith Equity Fund and Taiyo Capital Partners on March 27.
PI Industries: Company's officials will meet Emkay Global on March 27 and Batlivala & Karani Securities India on March 28.
Aster DM Healthcare: Meeting is scheduled to be held with Taiyo Pacific Partners on March 28 at Bangalore.
Tourism Finance Corporation of India: Company's officials will meet analysts/investors on March 28.
Bharat Forge: Company's officials will attend Motilal Oswal conference on March 27, meet Hermes Investment Management on March 28 and Lazard Asset Management on April 4.
LT Foods: Company's officials will meet Motilal Oswal Securities Limited on March 27.
Lincoln Pharmaceuticals: Board meeting is scheduled for March 28 to consider the appointment of CFO and secretarial auditors of the company.
Phoenix Mills: Company's officials will attend Motilal Oswal Annual India Ideation Conference organised by Motilal Oswal to be held on March 27.
Stocks in News
Sheela Foam: 2 promoters to sell up to 8.68 percent stake in company via offer for sale on March 27-28. OFS floor price set at Rs 1,100 per share.
Jet Airways: Company to reinstate 50 flights from March 31 and to resume operations from Bhuj, Mangalore, Bhopal & Aurangabad - CNBC-TV18 sources.
Wockhardt: Ireland, UK Drug Regulators cleared Aurangabad unit
Mindtree: Board has decided not to proceed with buyback of equity shares of the company and has formed directors panel to evaluate L&T open offer.
Bharat Electronics: Board declared a third interim dividend of 70 paise per share of Re 1 each fully paid-up for the financial year 2018-19 and has fixed March 28 as the record date for the payment of interim dividend.
Meghmani Organics: Fire broke out at agri manufacturing unit in Dahej.
Aris International: Board appointed Sushma Anuj Yadav as Chief Financial Officer of the company.
Sanghvi Movers: ICRA, after due consideration, has revised the long-term rating from A to A- and short term rating from A1 to A2+.
Unitech: Company successfully entered into a Share Purchase Agreement with Sterling and Wilson Private Limited for sale of entire issued and paid up share capital of Unitech Power Transmission Limited.
Allahabad Bank: Board approved raising equity capital of the bank by an amount aggregating upto Rs 4,000 crore.
Peninsula Land: ICRA revised its rating on company's non-convertible debentures of Rs 520.53 crore to BBB- on account of lower-than-expected sales and collections against the backdrop of delay in receipt of Occupancy Certificate (OC) in some of the company's large sized completed projects.
Geojit Financial Services: A P Kurian has tendered his resignation as the Chaiman and Independent Director of the company on account of new compliance requirements under the SEBI Listing Regulations.
GOCL Corporation: Board declared an interim dividend of Rs 2 per share of face value of Rs 2 each for the financial year 2018-19.
Frontline Securities: Board approved proposal for buy back of fuly paid up equity shares of Rs 5 each at a price of Rs 40 per share , aggregating to an amount up to Rs 75.60 crore.
SRI KPR Industries: Board approved the sale of 1.5MW wind mill unit situated at Karaichchuttupudur village, Tamil Nadu.
Narayana Hrudayalaya: Company proposed to set up a business process and technology consultancy business in United States Of America.
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 March 27, Adani Enterprises, Adani Power, IDBI Bank, Jet Airways and Reliance Power are present in this list.