Jayant Manglik of Religare Broking reiterated his advice to focus on trade selection and risk management.
The Nifty 50 reclaimed 11,900 levels on June 27 morning but failed to hold on. The index closed flat amid consolidation on account of expiry of derivative contracts.
The BSE Sensex shed 230 points from day's high to close 5.67 points lower to 39,586.41 while the Nifty 50 slipped six points to 11,841.50, forming a bearish candle resembling a Shooting Star kind of pattern on daily charts with long upper shadow and closing near to its intraday lowest point.
"This pattern indicates an inability of bulls to sustain above the resistance of 11,850 levels (resistance as per the concept of change in polarity). Minor volatility was seen mainly due to an F&O expiry of June series. The short term trend of Nifty is still positive with rangebound movement," Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.
He said only a decisive/sustainable move above 11,850 levels could have a further positive impact on the market ahead, otherwise minor short term correction could be in place.
Jayant Manglik, President - Retail Distribution at Religare Broking reiterated his advice to focus on trade selection and risk management. "Nifty has immediate next crucial hurdle at 12,000."
The broader markets outperformed frontliners with the Nifty Midcap index rising 0.4 percent while the sectoral trend was mixed with Auto climbing a percent and Realty 2 percent.
We have collated 14 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,841.55 on June 27. According to the Pivot charts, the key support level is placed at 11,804.6, followed by 11,767.7. If the index starts moving upward, key resistance levels to watch out are 11,894.8 and 11,948.1.
The Nifty Bank closed at 31,269.50, up 107.15 points on June 27. The important Pivot level, which will act as crucial support for the index, is placed at 31,122, followed by 30,974.5. On the upside, key resistance levels are placed at 31,453.8, followed by 31,638.1.
Call options data
Maximum Call open interest (OI) of 29.42 lakh contracts was seen at the 11,900 strike price. This will act as a crucial resistance level for the July series.
This is followed by 12,000 strike price, which now holds 26.62 lakh contracts in open interest, and 12,500, which has accumulated 14.71 lakh contracts in open interest.
Significant Call writing was seen at 11,900 strike price that added 3.69 lakh contracts, followed by 12,100 strike price that added 2.29 lakh contracts.
Call unwinding was seen at the strike price of 11,800, which shed 11.09 lakh contracts, followed by 11,700 strike that shed 8.03 lakh contracts and 12,000 strike which shed 7.94 lakh contracts.
Put options data
Maximum Put open interest of 35.64 lakh contracts was seen at 11,800 strike price. This will act as a crucial support level for the July series.
This was followed by 11,700 strike price, which now holds 33.30 lakh contracts in open interest and 11,600 strike price, which has now accumulated 23.94 lakh contracts in open interest.
Put writing was seen at the 11,800 strike price, which added 1.76 lakh contracts.
Put unwinding was seen at the strike price of 11,900, which shed 6.08 lakh contracts, followed by 11,700 strike price, which shed 5.83 lakh contracts and 12,000 strike which shed 3.33 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.
2 stocks saw a long buildup
87 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
7 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.
67 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Phillips Carbon Black: Board meeting is scheduled on July 19 to announce June quarter earnings.
ICICI Securities: Board meeting is scheduled on July 22 to announce June quarter earnings.
Hindustan Media Ventures: Board meeting is scheduled on July 22 to announce June quarter earnings.
Sagar Cements: Board meeting is scheduled on July 24 to announce June quarter earnings.
HT Media: Board meeting is scheduled on July 23 to announce June quarter earnings.
Mahindra Logistics: 12th Annual General Meeting to be held on August 1.
Symphony: Company's officials will meet Quantum Mutual Fund on June 28.
Maharashtra Seamless: Management of the company is scheduled to meet investors at Motilal Oswal India Investment Cycle Conference on July 2.
Polycab India: Company's officials will meet Edelweiss Securities on June 28.
Bosch: Company's official will have a conference call with First State Investment on July 1.
Redington (India): Annual General Meeting to be held on July 30.
Heidelbergcement India: Company's representative Anil Kumar Sharma, Chief Financial Officer and Amit Angra, Senior General Manager - Finance will be meeting the representatives of Anand Rathi Shares and Stock Brokers on June 28 at Gurugram.
Oceanic Foods: Board meeting is scheduled on July 1 to consider and approve allotment of bonus shares.
Stocks in news
Tata Steel: Henrik Adam to replace Hans Fischer as Europe arm's CEO from July 1.
Lupin: Company gets USFDA tentative approval for generic of Myrbetriq tablets.
Godrej Group confirmed CNBC-TV18 newsbreak on differences over business strategy & Vikhroli land, saying they have been working on a long term strategy plan for group for several years and sought advice from external partners to help them think through options.
Quess Corp: Company deferred its proposal of raising of funds; approved a change in role and designation of Manoj Jain from Chief Financial Officer (CFO) to the role of a Business Head, and elevation of Subramanian Ramakrishnan from the post of Deputy CFO to CFO of the company.
Can Fin Homes: Sarada Kumar Hota resigned as Managing Director & CEO (KMP) of the company.
GHCL: Company issued commercial paper amounting to Rs 25 crore.
Insilco: Company's plant will remain shut down from June 27 to July 9 due to high inventory.
MMTC: Company considers divestment of its equity in the JV - Neelachal Ispat Nigam Ltd.
Bank of Baroda: Bank approved opening balance sheet of the amalgamated bank as at April 1, 2019, i.e. post amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda.
Star Paper Mills: Madhukar Mishra as Managing Director of the company has been further renewed for a period of three years.
Hi-Tech Gears: Dinesh Chand Sharma has resigned from the position of CFO of the company.
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FII & DII dataForeign Institutional Investors (FIIs) sold shares worth net Rs 0.71 crore but Domestic Institutional Investors (DIIs) bought Rs 196.57 crore worth of shares in the Indian equity market on June 27, as per provisional data available on the NSE.The Great Diwali Discount!
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