Nagaraj Shetti of HDFC Securities said any false upside breakout attempt is expected to trigger next round of weakness.
The bulls turned up on D-Street as benchmark indices logged in gains, largely in line with global markets, which rallied after US Federal Reserve Chair Jerome Powell raised hopes of a rate cut.
"The short-term trend of Nifty is positive. The market sustaining above 11,625-11,650 levels could be an important task for the bulls to make a comeback. If it decisively moves above this hurdle, then the next upside of 11,800 could come into picture," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
He said any false upside breakout attempt is expected to trigger a next round of weakness. "On such circumstance, the Nifty could reach down to the lower gap area of 11,425 levels."
Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors also said Nifty future has managed to close above daily weighted average price (VWAP) almost after a week which can be an early sign of trend reversal, whereas confirmation will come on a close above 11,640 marks only.
The broader markets also traded in line with frontliners as the Nifty Midcap index gained 0.7 percent, but breadth was not so strong. About 930 shares advanced against 839 declining shares on the BSE.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,582.90 on July 11. According to Pivot charts, the key support level is placed at 11,535.27, followed by 11,487.63. If the index starts moving upward, the key resistance levels to watch out are 11,614.77 and 11,646.63.
Nifty Bank closed at 30,716.55, up 194.45 points on July 11. The important Pivot level, which will act as crucial support for the index, is placed at 30,591.9, followed by 30,467.2. On the upside, key resistance levels are placed at 30,814.7, followed by 30,912.8.
Call options data
Maximum Call open interest (OI) of 32.31 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.
This is followed by 11,800 strike price, which now holds 16.53 lakh contracts in open interest, and 11,900, which has accumulated 16.16 lakh contracts in open interest.
Significant Call writing was seen at 12,100 strike price, which added 0.57 lakh contracts, followed by an 11,900 strike price which added 0.27 lakh contracts.
Call unwinding was seen at 11,500 strike, which shed 2.99 lakh contracts, followed by 11,600 strike which shed 2.13 lakh contracts and 11,700 strike which shed 1.12 lakh contracts.
Put options data
Maximum Put open interest of 21.44 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for the July series.
This was followed by 11,000 strike price, which now holds 17.49 lakh contracts in open interest and 11,500 strike price, which has now accumulated 17.11 lakh contracts in open interest.
Put writing was seen at 11,200 strike price, which added 1.77 lakh contracts, followed by 11,000 strike price that added 1.28 lakh contracts and 11,300 strike, which added 0.83 lakh contracts.
Put unwinding was seen at the 11,500 strike, which shed 1.49 lakh contracts, followed by 11,600 strike that shed 1.43 lakh contracts and 11,900 strike which shed 0.68 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on it.
56 stocks saw a long buildup
68 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
31 stocks saw a short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
8 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Federal Bank: Investor/ Analyst conference call with the management of bank, to discuss quarter 1 results and business updates, will be held on July 16.
Adani Ports: Company's officials will meet analysts/investors on July 12-13 and 22.
Pacific Industries: Meeting of the board of directors of the company is scheduled on July 16 to consider various matters in connection with the rights issue.
Newgen Software Technologies: Company will announce its June quarter earnings on July 24.
Neogen Chemicals: Group meetings of analysts and investors have been organised on July 12.
Dhanuka Agritech: Company has scheduled a conference call with analysts/ investors being hosted by Emkay Global Financial Services Ltd on July 19 in connection with unaudited standalone & consolidated financial results of the company for June quarter.
Pennar Industries: Investor meeting is scheduled on July 12.
Bajaj Consumer Care: Company will participate in the earning conference call organized by ICICI Securities on July 16 with regard to the financial results for the quarter ended June 2019.
Emami: Senior Management of the company will be participating in the Spark Capital - Looking East Conference - Kolkata on July 12.
Stocks in news
Results on July 12: Infosys, IndusInd Bank, Karnataka Bank, Sangam (India), TRF, Hathway Cable & Datacom, GNA Axles, Infomedia Press, 3i Infotech, Reliance Industrial Infrastructure.
DEN Networks Q1: Net profit at Rs 11.2 crore versus loss of Rs 30.7 crore; revenue falls to Rs 313 crore versus Rs 314 crore YoY.
Salzer Electronics: Company completed acquisition of Kaycee Industries (acquired 72.32 percent shares from promoters of Kaycee Industries Ltd).
United Breweries: Company appointed Berend Odink as Chief Financial Officer, successor to Steven Bosch, erstwhile Chief Financial Officer.
Eveready Industries: Yes Bank acquired 39,10,000 equity shares of company (representing 5.38 percent of total paid-up equity) and 21,21,903 shares (representing 2.92 percent) by invoking pledged on promoters holding.
Himachal Futuristic Communications: Subsidiary HTL received a purchase order worth Rs 198.82 crore from Bharat Electronics for supply of various types of optical fibre cables.
Manpasand Beverages: Company to avail Rs 100 crore loan for working capital. Promoter Dhirendra Singh pledged entire stake.
TCS: Company launched Jile 3.0, a major release of its on-the-cloud Agile DevOps platform that helps companies of all sizes achieve enterprise agility.Indian Wood Product: Upon receipt of all required permission from regulatory authorities, the trail of the commercial production of premium katha at IWP's Jammu & Kashmir Plant has
Xelpmoc Design and Tech: Company approved the proposal of investment in share capital of Extrapolate Advisors Private Limited and Rype Fintech Private Limited.
Mac Charles: Company recommended a dividend at Rs 1O per share on the face value of Rs 10 each.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 316.86 crore, but Domestic Institutional Investors (DIIs) bought Rs 719.74 crore worth of shares in the Indian equity market on July 11, as per provisional data available on the NSE.Fund Flow Picture
Four stocks under F&O ban period on NSE
For July 12, DHFL, IDBI Bank, Reliance Capital and Reliance Infrastructure are under the F&O ban period.Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.