Chandan Taparia of Motilal Oswal Financial Services said immediate structure of the index is in under pressure and now till it is holds below 11,320 zone weakness could extend further towards 11,200 then 11,180 zones.
The market failed to hold on to early gains and closed lower for the sixth consecutive session on July 25, the expiry day for July futures & options contracts. It was dragged down by select banking & financials, auto, metals and energy stocks.
The BSE Sensex slipped 16.67 points at 37,830.98 while the Nifty 50 fell 19.10 points to 11,252.20, forming a bearish candle resembling an Inverted Hammer kind of pattern on the daily candlestick charts.
"The near-term trend of Nifty continues to be weak with range movement. The falling wedge type formation in the last four sessions hints at the possibility of a sharp comeback of bulls from the lows. But, we need confirmation of turnaround to call this a reversal," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He said further weakness from here could lead Nifty to reach an important support zone around 11,150-11,100 levels, as per smaller and larger timeframe chart.
Chandan Taparia, Associate Vice President, Analyst-Derivatives at Motilal Oswal Financial Services also said the immediate structure of the index is under pressure and until it holds below 11,320 zone weakness could extend further towards 11,200 and then to 11,180 zones. On the upside, the hurdle is seen at 11,365 and thereafter near the 11,400-zone.
The broader markets outperformed frontliners with the Nifty Midcap index rising 0.4 percent.
We have collated 14 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,252.15 on July 25. According to the pivot charts, the key support level is placed at 11,207.2, followed by 11,162.2. If the index starts moving upward, the key resistance levels to watch for out are 11,329.3 and 11,406.4.
The Nifty Bank closed at 29,043.05, up 90.80 points on July 25. The important pivot level, which will act as crucial support for the index, is placed at 28,902.53, followed by 28,761.96. On the upside, key resistance levels are placed at 29,212.23, followed by 29,381.37.
Call options data
Maximum Call open interest (OI) of 40.33 lakh contracts was seen at the 11,300 strike price. It will act as a crucial resistance level in August series.
This is followed by 11,400 strike price, which now holds 35.96 lakh contracts in open interest, and 11,500, which has accumulated 19.43 lakh contracts in open interest.
Significant Call writing was seen at the 11,300 strike price, which added 14.24 lakh contracts, followed by a 12,000 strike price, which added 0.23 lakh contracts.
Call unwinding was seen at 11,500 strike, which shed 6.92 lakh contracts, followed by 11,200 strike, which shed 4.58 lakh contracts and 10,500 strike, which shed 1.89 lakh contracts.
Put options data
Maximum Put open interest of 28.78 lakh contracts was seen at 11,200 strike price. It will act as a crucial support level in August series.
This is followed by an 11,000 strike price, which now holds 17.39 lakh contracts in open interest and an 11,100 strike price, which has now accumulated 14.43 lakh contracts in open interest.
Put writing was seen at the 11,200 strike price, which added 6.86 lakh contracts.
Put unwinding was seen at the 11,300 strike price, which shed 19.89 lakh contracts, followed by an 11,400 strike that shed 6.68 lakh contracts and an 11,500 strike price which shed 5.18 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.
2 stocks saw a long buildup
86 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
5 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.
69 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Genus Power Infrastructures: The 27th Annual General Meeting is scheduled to be held on September 6.
Havells India: Management of the company will be participating in a conference call to discuss the financial results for the first quarter ended June 2019 scheduled for July 29.
Stocks in news
Results on July 26: Maruti Suzuki India, Bajaj Auto, Punjab National Bank, Vedanta, JSW Steel, Tilaknagar Industries, Supreme Petrochem, Usha Martin, Polycab India, ABB India, Oriental Carbon, Elecon Engineering Company, Astec LifeSciences, Plastiblends India, Atul, Kalyani Forge, Balaji Amines, Remsons Industries, Confidence Petroleum India, VST Industries, Puravankara, Jubilant Life Sciences, Mangalam Drugs, Music Broadcast, Teamlease Services, KPIT Technologies, Aarti Drugs, Vodafone Idea, DIC India, Indraprastha Medical Corporation, Bajaj Holdings, Alicon Castalloy, Mahindra Lifespace Developers
Tata Motors Q1: Consolidated loss at Rs 3,698 crore against loss of Rs 1,902.37 crore, revenue declines 7.8 percent to Rs 61,467 crore YoY; JLR pre-tax loss at 395 million pound against 264 million pound loss YoY; net automotive debt rises to Rs 46,500 crore due to negative free cash flows.
Bank of Baroda Q1: Profit at Rs 710 crore against loss of Rs 49 crore, NII grows 2.6 percent to Rs 6,496 crore YoY; gross NPA rises to 10.28 percent against 10.02 percent and net NPA increases to 3.95 percent versus 3.65 percent QoQ.
Biocon Q1: Profit jumps 72.3 percent to Rs 206.3 crore versus Rs 119.7 crore, revenue increases 30.4 percent to Rs 1,465.9 crore versus Rs 1,123.8 crore YoY.
Bharat Bijlee Q1: Profit falls 16.4 percent to Rs 10.7 crore versus Rs 12.8 crore, revenue rises 14.2 percent to Rs 224.7 crore versus Rs 196.7 crore YoY.
South Indian Bank Q1: Profit jumps to Rs 73.3 crore versus Rs 23 crore, NII grows 8.4 percent to Rs 535.6 crore versus Rs 494.2 crore YoY; gross NPA rises to 4.96 percent versus 4.92 percent and net NPA dips to 3.41 percent versus 3.45 percent QoQ.
Jubilant Industries Q1: Consolidated net profit at Rs 9.6 crore versus loss of Rs 1 crore, revenue rises to Rs 152.6 crore versus Rs 128.2 crore YoY.
Westlife Development Q1: Loss at Rs 1.13 crore versus profit of Rs 9 crore, revenue rises 11.8 percent to Rs 381.9 crore versus Rs 341.7 crore YoY.
Avenue Supermarts: Company issued commercial paper of Rs 30 crore.
JK Agri Genetics: Company appointed Sravana Kumar Gowthavaram as Chief Financial Officer of the company with immediate effect.
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FII & DII dataForeign Institutional Investors (FIIs) sold shares worth Rs 126.65 crore, but Domestic Institutional Investors (DIIs) bought Rs 398.53 crore worth of shares in the Indian equity market on July 25, as per provisional data available on the NSE.