Indian market closed in the green for the seventh consecutive day in a row on Monday pushing both Sensex and Nifty50 to fresh record highs. The S&P BSE Sensex hit a high of 61,963, while the Nifty50 climbed 18,500 for the first time to hit a high of 18,543.

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On the sectoral front – metal, utilities, power, and public sector led the rally, while a mild profit booking was seen in the healthcare and telecom indices.

Technical experts are of the view that the trend remains strong but mild profit taking could be seen at higher levels, and one can look at trimming long positions.

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We have witnessed three back-to-back upside gaps in last three sessions, which generally is a sign of strength till the time previous day’s gap is not filled. So, for traders, it would be important to keep a track of this development.

“Historically its observed that whenever the trend is strong, we tend to see such ‘Runaway Gaps’ and whenever they immediately gets filled, it’s a first caveat to lighten up longs,” Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel One Ltd), said.

“Till then one should keep riding this move but the pragmatic approach would be to focus on stocks/ individual themes rather than index. Since we are in an uncharted territory, we reiterate every 100 points round figure is to be considered as next junction; whereas on the lower side, today’s gap area of 18445 – 18350 would be seen as crucial support zone,” he said.

Here is a list of 12 data points that will help you in making a profitable trade:

Key support & resistance levels for Nifty50:

The Nifty50 closed 0.76 per cent higher at 18,477. Key Pivot points (Fibonacci) support for the index is placed at 18,451, 18428, 18390 while resistance is placed at 18525, 18549, and 18586.

Key support & resistance levels for Nifty Bank:

The NiftyBank closed 0.87 per cent higher at 39,684. Key Pivot points (Fibonacci) support for the index is placed at 39589, 39500, and 39356 while resistance is placed at 39878, 39967, and 40112.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Options Data:

On the options front, the maximum Put OI is placed at 17500 followed by 18000 strikes while the maximum Call OI is placed at 18500 followed by 19000 strikes.

“Minor call writing is seen 18900 then 18700 strikes while Put writing is seen at 18500 than 18400 strike. Option data suggests an immediate trading range in between 18200 to 18700 zones,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

26 Stock seeing new Long Positions:

If price increases and open interest increases, then participants are having more of long positions.

 

06 stock witnessing Long Cover:

If the price decreases and open interest decreases, then participants are long covering their contracts.

 

24 stocks witnessing short positions:

If price decreases and open interest increases, then participants are having more of short positions.

 

35 stock witnessing short covering:

If the price increases and open interest decreases, then Participants are short covering their contracts.

FII Activity:

Foreign portfolio investors (FPIs) remained net buyers for Rs 512 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 1703 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

 

India VIX:

India VIX rose by nearly 9 per cent from 15.77 to 17.18 levels. A spike in volatility suggests volatile moves could be seen in the next few sessions, but the main reason for spike in volatility was Call unwinding pressure in the market.

Stocks under F&O ban on NSE

Seven stocks – Amara Raja Batteries, BHEL, Escorts, Indiabulls Housing Finance, Idea, NALCO, and Sun TV - are under the F&O ban. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

 (Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)