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The market posted healthy gains and successfully reclaimed the 50-day EMA (exponential moving average) on March 21 after the formation of a Doji candlestick pattern in the previous session, indicating a strong bullish reversal. Therefore, the Nifty 50 is likely to advance towards the 22,100-22,300 zone initially with support at 21,700 and once it manages to hold above 22,300, a rally towards all-time highs cannot be ruled out, experts said.
On March 21, the BSE Sensex jumped 540 points to 72,641, while the Nifty 50 rose 173 points to 22,012 after a positive open and formed a small-bodied bullish candlestick pattern with upper and lower shadow on the daily charts.
“Going forward, the Nifty could potentially extend its gains towards the 22,250-25,300 range. Also, a break above 22,300 can initiate a rally towards 22,500 and beyond,” said Rupak De, Senior Technical Analyst at LKP Securities. .
The dip buying strategy is expected to remain viable as long as the Nifty maintains levels above 21,840, he advised.
Shrikant Chouhan, head of equity research at Kotak Securities, expects 21,950 to act as a decisive trend level above which the bull run is likely to continue. “On the upper side, short-term resistance lies between 22,150 and 22,200. However, below 21,950 traders may prefer to exit long positions,” Chouhan said.
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Decreased volatility also supported the market, giving bulls confidence. The India VIX fear index fell 7.12 per cent to 12.51 level, while the BSE Midcap and Smallcap indices gained over 2.4 per cent each.
We’ve compiled 15 data points to help you spot profitable trades:
Key Support and Resistance Levels on Nifty
The pivot point calculator indicates that the Nifty 50 may face resistance at 22,025 followed by 22,098 and 22,151 levels. On the lower side, the index may find immediate support at 21,958, followed by 21,925 and 21,872.
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Ingenious bench
On March 21, the Bank Nifty recovered from the weakness of the previous nine consecutive sessions and rose 374 points to 46,685. The index had a positive opening and formed a sort of Doji candlestick pattern on the daily charts as the close was close to the opening levels.
“The index is likely to rise to 47,000-47,270 in the coming trading sessions. The crucial support zone lies between 46,500-46,400,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
According to the pivot point calculator, the Bank Nifty index may encounter resistance at 46,723, followed by 47,008 and 47,169. On the lower side, it is expected to get support at 46,588 followed by 46,489 and 46,328.
Purchase option data
As per weekly options data, Call’s maximum open interest was seen at 22,000 strike with 1.67 crore contracts, which may act as a key level for Nifty direction in the near term. It was followed by the strike of 22,100, which had contracts of Rs 1.14 million, while the strike of 22,300 had contracts of Rs 1.06 million.
Significant call drafting was seen in the 22,000 strike, which added 53.69 lakh contracts, followed by 22,100 strikes and 22,500 strikes, which added 38.27 lakh and 33.57 lakh contracts, respectively.
The maximum settlement of the call came in the strike of 21,900, which eliminated 19.38 lakh contracts, followed by 21,800 and 22,700 strikes, which eliminated 15.91 lakh contracts and 10.62 lakh contracts, respectively.
put options data
On the selling side, the 22,000 strike held the maximum open interest, which may act as a key level for Nifty direction with 2.68 crore contracts. It was followed by the strike of 21,900 comprising 99.32 lakh contracts and then the strike of 21,500 comprising 77.99 lakh contracts.
Put’s significant writing was in the 22,000 strike, which added contracts of 2.51 crore, followed by the 21,900 strike and the 21,600 strike which added contracts of 77.47 lakh and 22.19 lakh, respectively.
The liquidation was seen in 21,000 strikes, which eliminated 19.69 lakh contracts, followed by 21,200 and 21,100 strikes, which eliminated 12.32 lakh and 8.6 lakh contracts, respectively.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. Coromandel International, Marico, SBI Cards and Payment Services, JK Cement and Bharat Forge recorded the highest deliveries among F&O stocks.
89 Stocks See Long Accumulation
Long accumulation was seen in 89 stocks, which were SAIL, SRF, Siemens India, Muthoot Finance and National Aluminum Company. An increase in open interest (OI) and price indicates an accumulation of long positions.
4 stocks see a long decline
Based on OI percentage, four stocks saw long sell-off: Tata Chemicals, Bharti Airtel, Indus Towers and ICICI Bank. A decline in OI and price indicates a prolonged sell-off.
6 Stocks See Brief Accumulation
Brief accumulation was seen in 6 stocks including Shriram Finance, Infosys, HDFC Life Insurance Company, Petronet LNG and Maruti Suzuki India. A rise in OI coupled with a fall in price points to an accumulation of short positions.
87 stocks see short covering
Based on OI percentage, a total of 87 stocks were on the short covering list. These included Hindustan Aeronautics, BPCL, Balrampur Chini Mills, Coforge and IRCTC. A decrease in OI along with an increase in price is an indication of short covering.
Meeting of Analysts and Investors
Ujjivan Small Finance Bank, Crompton Greaves Consumer Electricals and Barbeque-Nation Hospitality will meet analysts and investors on March 22.
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Actions in the news
Tech stocks in the spotlight: IT services provider Accenture lowered its fiscal 2024 revenue forecast to 1-3 percent from 2-5 percent previously, as economic uncertainty led clients to reduce spending on IT services. consultancy.
wipro: Wipro IT Services LLC, the company’s step-down subsidiary, has entered into an agreement with General Motors and Magna International to incorporate a new entity i.e. SDVerse LLC. This transaction was completed on March 20.
Prestige property projects: Bengaluru-based real estate development company Prestige Group has acquired 62.5 acres of land in Indirapuram Extension, NCR. The acquisition cost is Rs 468 crore, along with a revenue share.
Bharat Dynamics: The state-run defense corporation has declared an interim dividend of Rs 8.85 per share for the financial year 2023-24, and also announced a subdivision of one existing share (of face value of Rs 10 each) into two shares of capital (of face value of Rs 5 each).
Sarda Energy and Minerals: Natural Resources Energy, the subsidiary joint venture company, has received the letter of intent for a composite license from the Department of Industry, Energy, Labor and Mining, Government of Maharashtra, for the Surjagad 1 iron ore block in Maharashtra.
Tata Communications: The company received approval from the board of directors to enter into a business transfer agreement for the demerger of its newly identified digital services business to its wholly owned subsidiary, Novamesh, as a going concern in a dip sale for Rs 458 .crore.
Fund Flow (Million Rupees)
FII and DII data
Foreign institutional investors (FIIs) sold net shares worth Rs 1,826.97 crore, while domestic institutional investors (DIIs) bought shares worth Rs 3,208.87 crore on March 21, provisional data from the NSE.
Stocks under F&O ban on NSE
The NSE has added SAIL to the F&O ban list for March 22, keeping Balrampur Chini Mills, Biocon, Indus Towers, Piramal Enterprises, Tata Chemicals and Zee Entertainment Enterprises on the list. Hindustan Copper and RBL Bank were removed from the said list.
Prohibited securities in the F&O segment include companies where derivative contracts exceed 95 percent of the market-wide position limit.
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