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As the index registered its eighth successive close in positive terrain, some pause or consolidation can’t be ruled out going forward
Bulls managed to recoup early losses on D-Street and helped the Nifty to close above 10500 levels for the first time since February 26 on Monday. The index formed a strong bullish candle on the daily candlestick charts.
Despite weak global cues Nifty managed to close above its crucial resistance levels of 10500 towards the close of the trade which has opened fresh target for the index towards 10600 levels. Investors are advised to maintain their long positions with a stop below 10370 levels.
The Nifty index opened gap down but witnessed sustained buying interest throughout the trading session to settle near day’s high which suggests strength in Indian markets.
The Nifty Midcap index and the Nifty bank gain more than 100 points each. The market breadth was in favour of declines despite gains. The advance-decline ratio stood at 1:1.
The Nifty which opened at 10398 slipped marginally to hit its intraday low of 10396 before bouncing back. It hit an intraday high of 10540 before closing 47 points higher at 10,528.
“In line with our expectations, bulls shrugged off the geopolitical tensions as initial dip was bought into by the market participants which resulted in a strong bullish candle formation suggesting that the trajectory of this market is changing from sell on rallies to buy on dips mode,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory,
“However, as Nifty heads towards much higher levels, real challenge for bulls lies in destroying the critical resistance placed around 10630 levels. Once this level is decisively conquered then this up move shall get extended further towards 10900 kind of levels,” he said.
But as the index registered its eighth successive close in positive terrain, some pause or consolidation can’t be ruled out going forward in next couple of trading sessions.
Mohammad further added that on the downsides positional traders are advised to place a stop below 10370 levels breach of which on closing basis shall once gain favour bears. Till then all dips should be considered as an opportunity to go long.
India VIX moved up by 0.51% at 14.21. VIX has to cool down to extend its positive momentum. On the options front, maximum Put OI was seen at 10300 followed by 10400 strikes while maximum Call OI is at 10700 followed by 10500 strikes.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,528.3 on Monday. According to Pivot charts, the key support level is placed at 10,436.33, followed by 10,344.37. If the index starts moving upwards, key resistance levels to watch out are 10,580.23 and 10,632.17.
Nifty Bank
The Nifty Bank index closed at 25,320.8. The important Pivot level, which will act as crucial support for the index, is placed at 25,142.54, followed by 24,964.27. On the upside, key resistance levels are placed at 25,423.84, followed by 25,526.87.
In terms of open interest, the 10,700 call option has seen the most call writing so far at 44.16 lakh contracts. This could act as a crucial resistance level for the index in the April series.
The second-highest buildup has taken place in the 10,500 Call option, which has seen 39.78 lakh contracts getting written so far. The 11,000 Call option has accumulated 35.98 lakh contracts.
Call writing was seen at the strike price of 10,700, which added 3.59 lakh contracts, followed by 11,000, which added 51,450 contracts.
Call unwinding was seen at the strike price of 10,400, which shed 2.77 lakh contracts, followed by 10,500, which shed 2.36 lakh contracts, and 10,300, which shed 1.43 lakh contracts.
Maximum open interest in put options was seen at a strike price of 10,300, in which 55.45 lakh contracts been added till date. This could be a crucial resistance level for the index in April series.
The 10,400 put option comes next, having added 53.51 lakh contracts so far, and the 10,000 put option, which has now accumulated 44.79 lakh contracts.
During the session, put writing was seen the most at a strike price of 10,500, with 7.72 lakh contracts being added, followed by 10,400, which added 4.86 lakh contracts and 10,300 with 3.13 lakh contracts.
Put unwinding was seen at the strike price of 10,200, which shed 6.01 lakh contracts, followed by 10,000, which shed 2.41 lakh contracts.
FII & DII data:
Foreign institutional investors (FIIs) sold shares worth Rs 308.13 crore, while domestic institutional investors sold shares worth Rs 28.97 crore in the Indian equity market, as per provisional data available on the NSE.
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