Nagaraj Shetti of HDFC Securities also said the short term trend of Nifty continues to be positive.
The market continued to consolidate for another trading session on April 2 with the BSE Sensex closing above the psychological 39,000 levels, driven by auto, technology and select banks stocks.
Nifty 50 maintained a positive momentum but struggled to cross above the all-time high due to profit booking in mid & small caps.
The BSE Sensex Sensex rose 184.78 points to end at record closing high of 39,056.65 while the Nifty 50 gained 44 points to close at 11,713.20 and formed 'Doji' kind of pattern on daily charts.
"Doji candlestick pattern formed by the Nifty suggests weakness only below 11,650 levels," Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors told Moneycontrol.
He said as long as Nifty is trading above April 2 pivot point placed at 11,684 levels, it can touch life high 11,760 mark & higher levels. "Moreover, bullish unfilled gap placed around 11,625-11,645 levels will act as crucial support on the lower side."
Nagaraj Shetti, Technical Research Analyst at HDFC Securities also said he observed three back-to-back doji patterns in the last three sessions and Tuesday's doji is placed slightly lower than Monday's.
"Technically, this three formation could be considered as a rare bearish 'tri-star' pattern, which indicate a possibility of top reversal pattern soon in the market. Still we need confirmation of reversal by the way of decline from the highs. Hence, long positions needs to be careful at the swing highs," he added.
The market breadth was in favour of bears as about 899 shares declined against 826 advancing shares on the NSE. The Nifty Midcap index ended flat while the Smallcap index was down 0.2 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 11,713.20 on April 2. According to the Pivot charts, the key support level is placed at 11,669.57, followed by 11,625.93. If the index starts moving upward, key resistance levels to watch out are 11,743.07 and 11,772.93.
The Nifty Bank index closed at 30,354.25, up 27.75 points on April 2. The important Pivot level, which will act as crucial support for the index, is placed at 30,189.04, followed by 30,023.87. On the upside, key resistance levels are placed at 30,486.14, followed by 30,618.07.
Call options data
Maximum Call open interest (OI) of 23.36 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the April series.
This was followed by 11,800 strike price, which now holds 15.18 lakh contracts in open interest, and 12,200, which has accumulated 13.77 lakh contracts in open interest.
Significant Call writing was seen at the 12,000 strike price, which added 1.92 lakh contracts, followed by 12,100 strike that added 0.83 lakh contracts and 11,800 strike that added 0.82 lakh contracts.
Call unwinding was seen at the strike price of 11,900 that shed 0.46 lakh contracts, followed by 11,600 strike that shed 0.26 lakh contracts.
Put options data
Maximum Put open interest of 19.29 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for April series.
This was followed by 11,200 strike price, which now holds 14.80 lakh contracts in open interest, and 11,300 strike price, which has now accumulated 12.67 lakh contracts in open interest.
Put writing was seen at the strike price of 11,700, which added 2.68 lakh contracts, followed by 11,600 strike that added 1.65 lakh contracts and 11,500 strike that added 1.52 lakh contracts.
Put unwinding was seen at the strike price of 12,000, which shed 0.38 lakh contracts, followed by 11,900 strike which shed 0.15 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 543.36 crore while Domestic Institutional Investors (DIIs) sold Rs 437.7 crore worth of shares in the Indian equity market on April 2, 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.
36 Stocks saw a long buildup
44 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
67 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.
52 stocks saw long unwinding
Bulk deals on April 2
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
DCM Shriram: Company's officials will meet White Oak Capital on April 3.
Ramco Industries: Board meeting is scheduled on May 23 to consider audited annual accounts for FY19 and to recommend dividend, if any.
Cholamandalam Investment and Finance Company: Board meeting is scheduled on April 27 to consider the audited financial results for FY19 and recommendation of final dividend.
Gujarat Hotels: Board meeting, on April 15, to consider financial results for FY19 and recommendation of dividend.
Shriram City Union Finance: Company's officials will meet analysts/institutional investors on April 3 and 4.
Stocks in news
IPO: Metropolis Healthcare opens for subscription on April 3
InterGlobe Aviation: IndiGo appoints Ronojoy Dutta as CEO of the company.
Marico: Company sees improved operating margin in Q4 on easing costs, and sees stable demand in Q4 and healthy growth in offtake.
Infosys: Subsidiary gets order from Kuwait’s Ahli United Bank for automation services.
Surana Telecom and Power: Company divested the 100 percent of equity stake held in Globecom Infotech Private Limited, wholly owned subsidiary.
DB Realty: In respect of creation of pledge on 77.5 lakh equity shares of DB Realty which were pledged by one of the promoters with Anand Rathi Global Financial Ltd. (lender) in connection with financial facility of Rs 6.00 crore given by the said lender to LLP.
Forbes & Company: Company handed over 50 percent of the business undertaking in project Vicinia to Paikar Real Estates Private Limited towards completion of the transaction.
Mastek: Company appointed Dennis Badman as chief business officer of Mastek Group.
Jet Airways: Company makes new roster for Boeing 737 pilots from April 11-26 - CNBC-TV18 Sources.
Karnataka Bank: Bank ties up with Bharti Axa Life Insurance company for life insurance business.
Magadh Sugar & Energy: CARE revised company's rating on long term bank facilities to BBB+:Stable, from A-:Negative.
Geetanjali Credit and Capital: Paresh G Patel, Managing Director of the company resigned.
Goa Carbon: Dara P Mehta resigned as Non- Executive Independent Director of the company.
Virtual Global Education: Kamal Poddar Kishor has resigned from the post of the Chief Financial Officer of the company.
Kamdhenu: Company installed all requisite machinery for increase of capacity of its steel plant at Bhiwadi, Rajasthan from 72,000 MT to 1,56,000 MT per annum.
Three 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 April 3, Adani Power, IDBI Bank and Reliance Power are present in this list.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .