Shabbir Kayyumi of Narnolia Financial Advisors said a decisive close below the strong support of Tuesday's pivot point 11,622 will attract selling & prices can trade lower towards 11,540 levels.
After consolidating early in the day, the market managed to gain momentum in the last hour of trade and ended near the day's high on April 9 with all sectoral indices closing in the green.
The BSE Sensex gained 238.69 points at 38,939.22 while the Nifty 50 rose 67.50 points to 11,672, forming a bullish candle on daily charts.
"The lower area of 11,550 level has offered support for the Nifty and led to to an upside bounce on Tuesday. We observe an alternative candle pattern like negative and positive candles formation over the last four sessions," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
He said the short term trend of Nifty is rangebound, a sustainable move above 11,700 levels could confirm more upside in the near term.
Tuesday's candlestick pattern also suggests bulls are active on the lower side. However, one more follow up closing above Tuesday's high 11,684 is required as a confirmation.
"Sustained trade above 5 days SMA placed around 11,640 will accelerate upmove to take the index higher towards life high placed around 11,761 levels," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors said.
Moreover, a decisive close below the strong support of Tuesday's pivot point 11,622 will attract selling & prices can trade lower towards 11,540 levels, he added.
Buying was seen across sectors. Nifty Bank, Auto, FMCG, IT, Metal, Pharma and Realty indices gained 0.6-1.4 percent.
The advance-decline ratio was in favour of bears pointing towards selling pressure in the broader markets as more number of scrips closed in negative terrain. About 966 shares declined against 786 advancing shares on the NSE. The Nifty Midcap and Smallcap indices closed flat with a positive bias.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,671.95 on April 9. According to the Pivot charts, the key support level is placed at 11,599.83, followed by 11,527.67. If the index starts moving upward, key resistance levels to watch out are 11,714.03 and 11,756.07.
The Nifty Bank index closed at 30,113.85, up 268.55 points on April 9. The important Pivot level, which will act as crucial support for the index, is placed at 29,823.23, followed by 29,532.67. On the upside, key resistance levels are placed at 30,284.73, followed by 30,455.67.
Call options data
Maximum Call open interest (OI) of 28.77 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 18.12 lakh contracts in open interest, and 12,200, which has accumulated 16.71 lakh contracts in open interest.
Significant Call writing was seen at the 12,100 strike price, which added 1.51 lakh contracts, followed by 12,200 strike that added 1.02 lakh contracts and 12,000 strike that added 0.95 lakh contracts.
Call unwinding was seen at the strike price of 11,800 that shed 1.06 lakh contracts, followed by 11,600 strike that shed 0.90 lakh contracts.
Put options data
Maximum Put open interest of 24.18 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the April series.
This was followed by 11,600 strike price, which now holds 17.41 lakh contracts each in open interest and 11,200 strike price, which has now accumulated 16.72 lakh contracts in open interest.
Put writing was seen at the strike price of 11,500 and 11,600, which added 1.47 lakh contracts each, followed by 11,300 strike which added 1.3 lakh contracts.
Put unwinding was seen at the strike price of 11,200 strike, which shed 0.56 lakh contracts, followed by 11,800 strike that shed 0.1 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 1,212.35 crore while Domestic Institutional Investors (DIIs) sold Rs 688.65 crore worth of shares in the Indian equity market on April 9, 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.
52 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.
37 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.
34 stocks saw long unwinding
Bulk Deals on April 9
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Analyst or Board Meet/Briefings
Mahindra Logistics: Company's officials will meet Aegon Life Insurance on April 10 and Quest Investment Advisors on April 16.
Lakshmi Vilas Bank: Board to consider raising funds via shares on April 12.
Shriram City Union Finance: Company will announce March quarter results and recommend dividend on April 24.
Stocks in news
SBI: Bank cut MCLR across tenors by five basis points. Home loan rates for up to Rs 30 lakh have been cut by 10 bps.
Info Edge: Company has invested through its wholly-owned subsidiary Rs 6 crore in Bizcrum Infotech Private Ltd.
Avenue Supermarts: Company raised Rs 50 crore via commercial papers.
Ashok Leyland: Promoter pledged 1.33 percent stake in the company.
Vodafone Idea: Rs 25,000 crore rights issue to open on April 10 & close on April 24.
Forbes & Co: CARE revised the company's long term rating to A+ From AA-.
Jet Airways: DGCA said company's lessors apply for de-registration of 7 more planes.
Karda Constructions: Company has completed RCC work of residential building A of project Hari Nakshatra Phase I amounting to Rs 9 crore against the construction work order of Rs 18.92 crore awarded by Shree Sainath Land & Development (India) Private Limited.
Usha Martin: Company completed sale of its steel business to Tata Sponge Iron.
Seven 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 10, Adani Power, DLF, IDBI Bank, Jet Airways, PC Jeweller, Reliance Power and Wockhardt are present in this list.