Shabbir Kayyumi of Narnolia Financial Advisors said as long as the index is trading below 5 EMA trading at 11,660 levels and weekly pivot point placed at 11,681, correction can extend towards the line of parity (11,550).
The market reversed more than half of previous day's gains in late sell-off and closed April F&O expiry session sharply lower on April 25 amid increase in crude oil prices.
The BSE Sensex fell 323.82 points to close at 38,730.86 while the Nifty50 slipped 84.40 points to 11,641.80 and formed bearish candle which resembles a Dark Cloud Cover kind of pattern on daily charts.
The reversal of gains and sharp sell-off indicated that the Nifty could break its crucial support of 11,550 levels, though near term uptrend status could be intact, experts said.
"A long negative candle was formed on Thursday with upper shadow. Technically, this pattern indicates a counter attack of bulls from a highs," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
He said Nifty showing a sharp downward reversal, after one session of upmove could signal a weak upside strength and there is a possibility of Nifty re-visiting its crucial support of 11550 levels.
Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors also said as long as the index is trading below 5 EMA trading at 11,660 levels and weekly pivot point placed at 11,681, correction can extend towards the line of parity (11,550).
Moreover, a sustained trade above 11,700 will accelerate upmove taking the index higher towards Thursday's high, he added.
Among sectors, Nifty Bank and Financial Service indices lost a percent each, followed by FMCG (down 0.85 percent) and Auto (0.67 percent).
Broader markets outperformed frontliners with the Nifty Midcap index falling 0.4 percent and Smallcap index closing flat.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,641.80 on April 25. According to the Pivot charts, the key support level is placed at 11,578.47, followed by 11,515.13. If the index starts moving upward, key resistance levels to watch out are 11,750.97 and 11,860.13.
The Nifty Bank index closed at 29,561.35, down 299.45 points on April 25. The important Pivot level, which will act as crucial support for the index, is placed at 29,362.91, followed by 29,164.5. On the upside, key resistance levels are placed at 29,908.71, followed by 30,256.1.
Call options data
Maximum Call open interest (OI) of 38.49 lakh contracts was seen at the 11,800 strike price. This will act as a crucial resistance level for the May series.
This was followed by 12,000 strike price, which now holds 23.86 lakh contracts in open interest, and 11,700, which has accumulated 15.57 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 11,800, which added 11.38 lakh contracts, followed by 11,900 strike that added 1.39 lakh contracts.
Call unwinding was seen at the strike price of 11,600 that shed 5.43 lakh contracts, followed by 11,500 strike price that shed 5.2 lakh contracts and 12,000 strike which shed 2.81 lakh contracts.
Put options data
Maximum Put open interest of 26.35 lakh contracts was seen at 11,600 strike price. This will act as a crucial support level for the May series.
This was followed by 11,500 strike price, which now holds 25.24 lakh contracts in open interest and 11,400 strike price, which has now accumulated 16.25 lakh contracts in open interest.
There was hardly any Put writing seen.
Significant Put unwinding was seen at the strike price of 11,700, which shed 22.16 lakh contracts, followed by 11,800 strike price that shed 3.06 lakh contracts and 11,500 strike price that shed 2.15 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 3,785.73 crore while Domestic Institutional Investors (DIIs) sold Rs 4,069.98 crore worth of shares in the Indian equity market on April 25, as per provisional data available on the NSE.
Fund Flow Picture
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.
No stock saw a long buildup
Not a single stock saw a long buildup on April 25, the expiry day for April futures & options contracts.
56 stocks 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.
135 stocks saw long unwinding
Bulk Deals on April 25
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Analyst or Board Meet/Briefings
United Spirits: Audited Financial Results for the quarter and Year ended March 31, 2019 conference call to be held on May 30.
Speciality Restaurants: Company's officials will meet Sanjay Agarwal Securities on April 26.
Majesco: Company to announce three-year strategic plan at May 8th Investor Day at Nasdaq.
Hindustan Zinc: Company will announce March quarter earnings on May 2.
Laurus Labs: Company will announce March quarter earnings on May 2.
Mahindra Logistics: Earnings conference call is scheduled to be held on May 8 with several Analysts/ Institutional Investors/ Funds.
Stocks in news:
Results on April 26: Hero MotoCorp, Yes Bank, HDFC Asset Management Company, HDFC Life Insurance Company, Adarsh Plant Protect, Atul, Carborundum Universal, Classic Electricals, Deltron, DIC India, Foseco India, Hindustan Appliances, Indian Energy Exchange, Lloyds Steels Industries, Piramal Enterprises, Shikhar Leasing & Trading, Sujana Universal Industries, Supreme Petrochem
Axis Bank Q4: Profit at Rs 1,505.1 crore against loss of Rs 2,188.7 crore, net interest income rises 20.6 percent to Rs 5,705.6 crore versus Rs 4,730.5 crore YoY. Gross NPA falls at 5.26 percent versus 5.75 percent and net NPA at 2.06 percent versus 2.36 percent QoQ.
MCX Q4: Profit rises 78.6 percent at Rs 61 crore versus Rs 34 crore, revenue climbs 11.9 percent to Rs 79 crore versus Rs 71 crore YoY.
Cyient Q4: Profit jumps 90.3 percent to Rs 176 crore versus Rs 92.5 crore, revenue falls 2.1 percent to Rs 1,163 crore versus Rs 1,187 crore QoQ.
Rallis India Q4: Consolidated profit falls to Rs 1.52 crore versus Rs 19.78 crore; revenue dips to Rs 339.7 crore versus Rs 371 crore YoY.
Biocon Q4: Consolidated profit jumps to Rs 213.7 crore versus Rs 130.4 crore; revenue rises to Rs 1,528.8 crore versus Rs 1,169.5 crore YoY.
Board approved recommended issue of bonus shares by capitalisation of free reserves in the ratio of 1:1.
Tata Steel Q4: Consolidated profit falls to Rs 2,431 crore versus Rs 10,153 crore YoY but increases from Rs 2,334 crore QoQ; revenue jumps to Rs 42,424 crore versus Rs 33,705 crore YoY.
Board approved composite scheme of amalgamation of Bamnipal Steel and Tata Steel BSL into and with Tata Steel.
Kotak Mahindra Bank: Subsidiary to sell 19.7 percent stake in Matrix Business.Bank Of Baroda: Board approved raising Rs 5,040 crore via share issue to government.
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