Shrikant Chouhan of Kotak Securities says for next few days, 10,850 will be the support level and 11,150 will act as resistance for Nifty.
Benchmark indices extended rally on September 9 but failed to recoup in complete the losses seen the week before. Banking and financials, auto and FMCG stocks pushed indices higher. The broader markets participated in the move, with the Nifty Midcap index rising more than a percent.
The Sensex climbed 163.68 points to 37,145.45, while the Nifty rose 56.80 points to 11,003 and formed a bullish candle on daily charts.
Experts expect the momentum to continue and feel the closing above 11,150 could spark a sharp upside.
"The short-term trend of the Nifty continues to be positive. The present upside momentum is likely to pull the market towards the crucial resistance zone of around 11,120-11,150 levels in the next few sessions," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
He said a decisive/sustainable move only above 11,150 would bring a sharp upside movement in the market and could open up a potential pattern target on the upside. Failure to sustain the highs could result in a minor downward correction, Shetti added.
Shrikant Chouhan, Senior Vice-President (Equity Technical Research) at Kotak Securities, said for next few days, 10,850 would be the support level and 11,150 would act as resistance. Above 11,150, the Nifty would enter into a medium-term uptrend, he added.
All sectoral indices, barring IT, saw buying interest with the Nifty Bank, auto, FMCG and financial services gaining 0.7-0.9 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed in the green at 11,003.05 on September 9. According to the pivot charts, key support level is at 10,918.93, followed by 10,834.87. If the index remains on the upward trajectory, key resistance levels to watch out for are 11,057.93 and 11,112.87.
The Nifty Bank closed at 27,504.65, up 0.94 percent on September 9. The important pivot level, which will act as crucial support, is placed at 27,143.87, followed by 26,783.04. On the upside, key resistance levels are at 27,715.57 and 27,926.43.
Call options data
Maximum call open interest (OI) of 20.67 lakh contracts was seen at the 11,500 strike price. It will act as a crucial resistance level in the September series.
This is followed by 11,000 strike price, which now holds 19.92 lakh contracts in open interest, and 11,200, which has accumulated 19.35 lakh contracts in open interest.
Significant call writing was seen at the 11,100 strike price, which added 0.8 lakh contracts, followed by 11,400 strike price that added 0.67 lakh contracts and 11,300 strike which added 0.24 lakh contracts.
Call unwinding was seen at 11,000 strike price, which shed 1.42 lakh contracts, followed by 11,500 strike, which shed 1.04 lakh contracts.
Put options data
Maximum put open interest of 33.47 lakh contracts was seen at 10,800 strike price, which will act as crucial support in the September series.
This is followed by 10,600 strike price, which holds 24.61 lakh contracts in open interest, and 11,000 strike price that has accumulated 22.73 lakh contracts in open interest.
Put writing was seen at the 10,900 strike price, which added 3.01 lakh contracts, followed by 11,000 strike, which added 1.97 lakh contracts and 10,600 strike that added 1.46 lakh contracts.
Put unwinding was seen at the 10,500 strike price, which shed 2.6 lakh contracts, followed by 10,300 strike which shed 1 lakh contracts.
Stocks with a high delivery percentageA high delivery percentage suggests that investors are showing interest in these stocks.
63 stocks saw long buildup
62 stocks saw short-coveringA decrease in open interest, along with an increase in price, mostly indicates a short covering.
23 stocks saw short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
13 stocks saw long unwinding
Upcoming analyst or board meetings/briefings
Indian Bank: The board meets on September 18 to consider and approve merger of Allahabad Bank into Indian Bank and capital infusion by the government by way of preferential issue of shares.
Ceat: Company will be participated in analyst/institutional investors meet organised by BOB Capital on September 13.
BCL Industries: A board meeting is planned for September 19 to consider and approve various matters, including invitation to deposits.
MCX: Company's officials meet White Oak and Prusik Investment Management on September 11, Moerus Capital Management LLC on September 12 and o3 Capital the next day.
Punjab & Sind Bank: In a board meeting on September 19, capital infusion of up to Rs 800 crore by the government through preferential issue of equity shares will be taken up for approval .
Talbros Automotive Components: Company officials will meet investors and analysts on September 11 and 12.
Bharat Forge: Company's officials will meet Walter Scott on September 11 and East Bridge Capital two days later.
eClerx Services: A meeting with ICICI Prudential Mutual Fund (via Equirus Capital) is planned for September 13.
Stocks in news
Sun Pharma: Company increased stake in PJSC Biosintez Of Russia to 100 percent from 96.96 percent through purchase of shares.
JK Tyre: Company redesignated Anshuman Singhania deputy managing director with immediate effect.
OBC: Lender cuts 1-year MCLR to 8.40 percent from 8.55 percent.
IL&FS Engineering & Construction: Company appoints Bhaskara Rao & Co as the sole statutory auditor.
Meghmani Organics: Subsidiary MFL to set up a Rs 275- crore epichlorohydrin project.
Varun Beverages: Approves to acquire 20 percent of issued & paid-up equity share capital of Lunarmech Technologies.
Tata Motors: Jaguar Land Rover retail sales in August drop to 34,176 vehicles, down 6.7 percent YoY.
Glenmark Pharmaceuticals: Company gets ANDA approval for Clobetasol Propionate Foam.
Indiabulls Housing Finance: CRISIL revised long-term rating to AA+ and reaffirmed short-term rating at A1+
Reliance Capital: Brickwork Ratings downgraded rating to BB and revised rating outlook to negative from credit watch, with negative implications for long-term debt programme, market linked debentures and subordinated debt of the company.
HCL Technologies: Company to acquire Sankalp Semiconductor.
DFM Foods: AI Global Investments (Cyprus) PCC made an open offer to acquire 26 percent stake at Rs 249.50 per share.
Gravita India: CARE assigned BBB+ rating to company's long-term bank facilities and A2 to the short-term bank facilities.
Ballarpur Industries: Solutions Finquest Financial sold 78,98,761 shares of the company at 56 paise per share on the NSE via bulk deal on September 9.
(For more bulk deals, click here)
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 188.08 crore, while domestic institutional investors (DIIs) bought Rs 686.47 crore worth of shares in the Indian equity market on September 9, as per provisional data available on the NSE.Fund Flow Picture
No stock under ban period on NSE
For September 11, not a single stock is under F&O ban.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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.