After the sharp sell-off in the previous session, benchmark indices on March 31 staged a smart recovery and ended on a positive note.
Positive global cues, mainly in response to an improvement in China’s manufacturing data, lifted investors’ sentiments, which led to buying in the Indian markets despite the rise in coronavirus cases.
BSE Sensex rose 1,028 points to 29,468 while Nifty50 closed 317 points higher at 8,598.
Experts say consolidation will continue and if the index surpasses 8,660 on closing, then there could be a sharp upside in the coming days.
Positional traders are advised to retain optimistic outlook and should consider fresh long positions on a close above 8,660 for bigger targets.
"Traders should align their positions keeping in mind the prevailing scenario. On the other hand, investors should not worry much about the daily fluctuations and maintain their focus on accumulating quality names in a phased manner," said Ajit Mishra, VP - Research, Religare Broking.
We have collated 14 data points to help you spot profitable trades:
Note: The OI and volume data of stocks given in this story are the aggregates of the three-months data and not of the current month only.
Key support and resistance level for Nifty
According to the pivot charts, the key support level for Nifty is placed at 8411.07, followed by 8224.38. If the index continues moving up, key resistance levels to watch out for are 8731.37 and 8864.98.
Nifty Bank closed 1.93 percent up at 19,144. The important pivot level, which will act as crucial support for the index, is placed at 18802.17, followed by 18460.33. On the upside, key resistance levels are placed at 19476.07 and 19808.13.
Call options data
Maximum call open interest (OI) of 14.39 lakh contracts was seen at the 9,000 strike price. It will act as a crucial resistance level in the April series.
This is followed by 8,500 strike price, which holds 7.8 lakh contracts in open interest, and 8,700, which has accumulated 1.32 lakh contracts in open interest.
A minor call writing was seen at the 8,900 strike price, which added 4,200 contracts, followed by 8,600 strike price that added 3,075 contracts.
Call unwinding was witnessed at 9,100 strike price, which shed 19,950 contracts, followed by 9,000 strike price which shed 19,200 contracts.
Put options data
Maximum put open interest of 13.36 lakh contracts was seen at 9,000 strike price, which will act as crucial support in the April series.
This is followed by 8,500 strike price, which holds 12.58 lakh contracts in open interest, and 8,100 strike price, which has accumulated 8.18 lakh contracts in open interest.
Put writing was seen at the 8,300 strike price, which added 43,800 contracts, followed by 8,400 strike, which added 27,225 contracts.
Put unwinding was seen at 8,100 strike price, which shed 64,800 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
68 stocks saw long build-up
Based on open interest (OI) future percentage, here are the top 10 stocks in which long build-up was seen.
4 stocks saw long unwinding
24 stocks saw short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.
51 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on open interest (OI) future percentage, here are the top 10 stocks in which short-covering was seen.
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Hindustan Unilever: The board will meet on April 1 to consider and approve Scheme of Arrangement.
Reliance Industries: The board will meet on April 2 for general purposes.
IND-AGIV Commerce: The board will meet on April 2 for general purposes.
Dhanvarsha Finvest: The board will meet on April 3 for general purposes.
Stocks in the newsIndiabulls Housing Finance:
The company has bought back secured, redeemable, non-convertible debentures of the face value
Rs 10,00,000 each, issued by the company.
Escorts: All offices and plants shall be shut till April 14, 2020, due to COVID-19.
Zuari Agro Chemicals: The company has acquired shares of Zuari Farmhub, making it a wholly owned subsidiary of the company. It executed the Business Transfer Agreement with Zuari Farmhub on March 31.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 3,044.94 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 3,576.23 crore in the Indian equity market on March 31, provisional data available on the NSE showed.