Nagaraj Shetti of HDFC Securities said the Nifty could face resistance around 12,050 levels and any downward correction from the highs is unlikely to damage the near term uptrend status of the market.
The market managed to end at record closing high for third consecutive session amid a positive trend in Asian peers on May 28.
The BSE Sensex rose 66.44 points to close at 39,749.73 while the Nifty 50 gained four points to 11,928.75, forming a 'Hanging Man' candle on daily charts.
"A small negative candle was formed today with long lower shadow. Technically, this pattern signals a consolidation at the highs after a smart upside bounce in the last couple of sessions," Nagaraj Shetti - Technical Research Analyst, HDFC Securities told Moneycontrol.
He said the overall trend remains positive, the Nifty could face resistance around 12,050 levels and any downward correction from the highs is unlikely to damage the near term uptrend status of the market.
A Hanging Man is a bearish reversal candlestick pattern which is usually formed at the end of an uptrend or at the top (around 771-point rally from its recent low of 11,157 recorded on May 15). In a perfect 'Hanging Man' pattern either there will be a small upper shadow or no upper shadow at all, a small body and long lower shadow.
The broader markets underperformed frontliners with the Nifty Midcap and Smallcap indices ending flat with a negative bias.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,928.75 on May 28. According to the Pivot charts, the key support level is placed at 11,876.3, followed by 11,823.8. If the index starts moving upward, key resistance levels to watch out are 11,969.9 and 12,011.
The Nifty Bank index closed at 31,597.90, down 49.75 points on May 28. The important Pivot level, which will act as crucial support for the index, is placed at 31,380.2, followed by 31,162.5. On the upside, key resistance levels are placed at 31,764, followed by 31,930.1.
Call options data
Maximum Call open interest (OI) of 40.86 lakh contracts was seen at the 12,500 strike price. This will act as a crucial resistance level for the May series.
This was followed by 12,000 strike price, which now holds 40.47 lakh contracts in open interest, and 12,200, which has accumulated 23.73 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,900, which added 3.76 lakh contracts, followed by 12,000 strike which added 3.34 lakh contracts.
Call unwinding was seen at the strike price of 12,500, which shed 3.18 lakh contracts, followed by 12,300 strike price that shed 1.08 lakh contracts.
Put options data
Maximum Put open interest of 26.41 lakh contracts was seen at 11,700 strike price. This will act as a crucial support level for the May series.
This was followed by 11,500 strike price, which now holds 24.21 lakh contracts in open interest and 11,800 strike price, which has now accumulated 24.10 lakh contracts in open interest.
Put writing was seen at the strike price of 11,900, which added 4.75 lakh contracts, followed by 12,000 strike price that added 1.5 lakh contracts.
Put unwinding was seen at the strike price of 11,700, which shed 3.49 lakh contracts, followed by 11,500 strike price that shed 2.01 lakh contracts.
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.
39 stocks saw a long buildup
50 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
53 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.
57 stocks saw long unwinding
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 501.11 crore while Domestic Institutional Investors (DIIs) bought net Rs 269.22 crore worth of shares in the Indian equity market on May 28, as per provisional data available on the NSE.
Fund Flow Picture
Stocks in news
Results on May 29: More than 600 companies will declare their March quarter earnings on Wednesday, which include United Spirits, Adani Enterprises, Adani Power, Bharat Electronics, Cadila Healthcare, Havells India, Ipca Labs, NBCC, PFC, Power Grid, Reliance Power, TTK Prestige, Tata Teleservices etc.
Sun Pharma Q4: Profit down 52.6 percent at Rs 635.9 crore versus Rs 1,342.5 crore; revenue up 2.7 percent at Rs 7,163.9 crore versus Rs 6,977 crore (YoY).
Sun Pharma: Company absorbed unsold goods worth Rs 716 crore of Aditya Medisales
Aurobindo Pharma Q4: Profit up 10.8 percent at Rs 549.1 crore versus Rs 528.5 crore; revenue up 30.7 percent at Rs 5,292.2 crore versus Rs 4,049.1 crore (YoY)
Gati Q4: Consolidated profit at Rs 10.6 crore versus loss of Rs 4.7 crore; consolidated revenue up 1 percent at Rs 459.4 crore versus Rs 455.3 crore (YoY).
Minda Corp Q4: Profit up 1.1 percent at Rs 39.1 crore versus Rs 38.7 crore; revenue up 7.1 percent at Rs 771.4 crore versus Rs 720.5 crore (YoY).
NMDC Q4: Profit up 31.4 percent at Rs 1,453.8 crore versus Rs 1,106 crore; revenue down 6.2 percent at Rs 3,643.3 crore versus Rs 3,883 crore (YoY).
Jaiprakash Associates Q4: Loss of Rs 350.2 crore versus loss of Rs 78.7 crore; revenue up 7.1 percent at Rs 1,721.2 crore versus Rs 1,606.6 crore (YoY).
Galaxy Surfactants Q4: Profit up 42.8 percent at Rs 57 crore versus Rs 40 crore; revenue up 6 percent at Rs 682 crore versus Rs 643.5 crore (YoY).
Centrum Capital Q4: Loss of Rs 149.1 crore versus profit of Rs 42.1 crore; revenue at Rs 3 crore versus Rs 13.7 crore (YoY).
Asian Granito Q4: Profit down 84.2 percent at Rs 1.9 crore versus Rs 12.1 crore; revenue down 8.6 percent at Rs 303.1 crore versus Rs 331.5 crore (YoY).
Himadri Specialty Q4: Profit up 1.4 percent at Rs 71.2 crore versus Rs 72.2 crore; revenue up 15.9 percent at Rs 583.4 crore versus Rs 550.7 crore (YoY).
Gujarat Alkalies Q4: Profit down 23.2 percent at Rs 169.8 crore versus Rs 221.1 crore; revenue up 17.7 percent at Rs 820.6 crore versus Rs 697.3 crore (YoY).
Lakshmi Vilas Bank Q4: Loss at Rs 264.4 crore versus loss of Rs 622.2 crore; NII up 16.3 percent at Rs 140.2 crore versus Rs 120.6 crore (YoY); gross NPA at 15.30 percent versus 13.95 percent (QoQ)
IRCON International Q4: Profit down 55.8 percent at Rs 95.6 crore versus Rs 216.3 crore; revenue up 2.4 percent at Rs 1,532.8 crore versus Rs 1,497 crore (YoY).
Pfizer Q4: Profit up 4.8 percent at Rs 109.5 crore versus Rs 104.5 crore; revenue up 3 percent at Rs 535.7 crore versus Rs 520 crore (YoY).
Aegis Logistics Q4: Consolidated profit up 28 percent at Rs 61.7 crore versus Rs 48.2 crore; consolidated revenue up 48 percent at Rs 1,852.6 crore versus Rs 1,251.9 crore (YoY).
IRB Infrastructure Q4: Consolidated net profit down 13.2 percent at Rs 208 crore versus Rs 239.7 crore; consolidated revenue up 41 percent at Rs 1,948.3 crore versus Rs 1,382.2 crore (YoY)
Opto Circuits Q4: Profit up 4.7 percent at Rs 11.1 crore versus Rs 10.6 crore; revenue down 7.2 percent at Rs 61.6 crore versus Rs 66.4 crore (YoY).
3M India Q4: Consolidated profit down 38.2 percent at Rs 60.3 crore versus Rs 97.6 crore; consolidated revenue up 3 percent at Rs 742.8 crore versus Rs 720.4 crore (YoY).
20 Microns Q4: Profit up 70.6 percent at Rs 5.8 crore versus Rs 3.4 crore; revenue up 15.3 percent at Rs 116.6 crore versus Rs 101 crore (YoY).
Teamlease Services Q4: Consolidated profit up 3.2 percent at Rs 26 crore versus Rs 25.2 crore; consolidated revenue down 0.8 percent at Rs 1,163.4 crore versus Rs 1,172.2 crore (QoQ).
Tata Steel: Company in talks with China's Hesteel Group, UK's Excalibur Steel, Liberty House for EU operations. Company may look at complete/part sale, can mull JV as well - CNBC-TV18 sources.
Karur Vysya Bank: Bank signed a term sheet for a joint venture with Centrum Wealth Management Limited.
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Analyst or Board Meet/Briefings
Cummins India: Management will interact with investor/analyst/ financial institution on May 30.
Escorts: Company's officials will participate in B&K Annual investor Conference - Trinity 2019 on May 30, Citi's 14th Annual India Investor Conference on June 4 and UBS India Mid-Cap Conference 2019 on June 7.
Mahindra Logistics: Company's officials will interact with Analysts / Institutional Investors in Mumbai on May 29 and 30.
Neogen Chemicals: Company's officials will interact with Analysts / Institutional Investors in Mumbai on May 29, May 30 and June 14.
Thomas Cook: Company's officials will participate in the B&K Annual Investor Conference on May 29.
Ashoka Buildcon: Company's officials will participate in the B&K Annual Investor Conference on May 29.
Welspun India: Company's officials will participate in the B&K Annual Investor Conference on May 29.
Mishra Dhatu Nigam: Company has scheduled a Conference call for analysts and investors on May 30.
Texmaco Rail: Company's officials will participate in the B&K Annual Investor Conference on May 30.
Blue Star: Company's officials will meet analysts of HDFC Securities on May 30.
Great Eastern Shipping: Board meeting to be held on June 1 for considering the proposal of buyback through the open market.
Two stocks under ban period on NSE
For May 29, Adani Power and PC Jeweller are under a ban period.Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.The Great Diwali Discount!
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