22 stocks from Futures segment witness open=low

Update: It has been a disappointing start to the final trading session of the fiscal year 2020-21 amid mixed global cues. 

Nifty is trading down by half a per cent, dragged by HDFC twins as collectively, they have contributed 74 points in the fall of Nifty index.  

Interestingly, 22 stocks from the Futures segment have seen open is equal to low. It includes stocks such as Tata Power, Godrej Properties, SBIN, Bank of Baroda, Glenmark, etc.  

Friday’s session was just a teaser with Nifty registering gains of 1.27 per cent and what followed on Tuesday was the whole picture as Nifty recorded one of its best signal-day gains in percentage terms since February 2. Nifty jumped 2.33 per cent to end the day at 14,845.   

The bulls were in complete form, right from the beginning of the session till the end of the day. The unblocking of Suez Canal and the expected unveiling of the infrastructure plan from the US President provided a kick start to the bulls. Further, from there on, it was no looking back as it went from strength to strength to end the session near the day’s high. As a result, the index formed a sizeable bullish candle with a gap-up opening and reclaimed its 20 as well as 50-DMA.   

The slower pace of retracement of the upmove from January 29 lows to February 16 high as Nifty retraced 61.8 per cent of the 12-day upmove in about 26-27 sessions, followed up almost 100 per cent of retracement of the downmove beginning from March 23 to 25 as Nifty signifies the bulls are back in control. However, the bigger question is that whether this upmove is due to window dressing by mutual funds to prop up their NAV before the close of the financial year. Well, this could be the reason, but what matters most is that after a period of slumber, the bulls are back with a bang!  

Apart from this, there is an interesting observation on the RSI. The 14-period daily RSI on the daily chart did not hit the oversold region during the declining phase. In fact, it took a U-turn from the 38-mark and has once again moved above the 50-mark. Meanwhile, on the weekly chart, it stays above the 60-mark, which indicates that on the higher timeframe, it's in the super bullish range while on the daily chart, it's sideways as long as it trades between the 40-60 zone. Hence, moving above the 60-mark would indicate that the index is moving out of the sideways to a bullish range. So, all eyes would be on the 60-mark on RSI in the coming sessions.   

In the coming session, the zone of 14,950-15,050 is likely to act as a strong resistance and this is being confirmed by the weekly options data as well as the maximum concentration of open interest seen at the 15,000 call option. Hence, traders are advised to be cautious around the zone of 14,950-15,050 as we could see some profit booking around these zones. Meanwhile, on the downside, the zone of 14,700-14,750 is a strong support region.