Nagaraj Shetti of HDFC securities said the overall weekly chart pattern is indicating a possibility of minor upside bounce, which could be a sell-on-rise opportunity in the market
After a rangebound trade on February 15, Nifty closed 0.2 percent lower, continuing downtrend for sixth consecutive sessions. It lost 2 percent during the week. Discouraging Q3 numbers along with rising oil prices, FII outflow and uncertainty over trade war talks weighed on sentiment.
The index registered a bearish candle on daily and weekly charts, which resembles a hammer and bearish belt hold pattern, respectively.
"Although Nifty is trading in the red, a majority of the momentum oscillators are in the oversold zone. The possibility of a bounceback cannot be ruled out," Shabbir Kayyumi, Head - Technical & Derivative Research at Narnolia Financial Advisors told Moneycontrol.
At the same time, the index has managed to recover intraday losses from the day's low point and formed a pin bar candle that can be called as a trend reversal pattern, he added.
If the index trades above today's high (10,782), it will accelerate towards 10,850. A close below the strong support of 100-DMA (10,694) will push the index lower towards 10,630, Kayyumi said.
Nagaraj Shetti, Technical Research Analyst at HDFC securities also said the overall weekly chart pattern is indicating a possibility of minor upside bounce, which could be a sell-on-rise opportunity in the market.
The broader market indices were hit very hard during the last week, falling 3 percent.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 10,724.40 on February 15. According to Pivot charts, the key support level is placed at 10,634.6, followed by 10,544.8. If the index starts moving upward, key resistance levels to watch out are 10,800 and then 10,875.6.
The Nifty Bank index closed at 26,794.25, down 176.35 points on February 15. The important Pivot level, which will act as crucial support for the index, is placed at 26,609.63, followed by 26,425.06. On the upside, key resistance levels are placed at 27,004.33, followed by 27,214.47.
Call options data
Maximum Call open interest (OI) of 41.55 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the February series.
This was followed by the 10,900 strike price, which now holds 25.87 lakh contracts in open interest, and 11,200, which has accumulated 25.77 lakh contracts in open interest.
Meaningful Call writing was seen at the strike of 10,700 that added 4.19 lakh contracts, followed by 10,800 strike that added 3.11 lakh contracts and 10,600 strike that added 66 thousand contracts.
Call unwinding was seen at the strike price of 10,900 that shed 1.99 lakh contracts, followed by 11,100 strike that shed 1.7 lakh contracts and 11,000 that shed 1.17 lakh contracts.
Put Options data
Maximum Put open interest of 32.12 lakh contracts was seen at the 10,700 strike price. This will act as a crucial support level for the February series.
This was followed by the 10,400 strike price, which now holds 31.36 lakh contracts in open interest, and the 10,500 strike price, which has now accumulated 27.92 lakh contracts in open interest.
Put writing was seen at the strike price of 10,400, which added 2.68 lakh contracts, followed by 10,500 which added 2.46 lakh contracts and 10,700 strike which added 1.21 lakh contracts.
Put unwinding was seen at the strike price of 10,900 which shed 3.82 lakh contracts, followed by 10,800 strike which shed 3.7 lakh contracts and 10,600 strike which shed 3.39 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 966.43 crore and Domestic Institutional Investors bought Rs 853.25 crore worth of shares in the Indian equity market on February 15, as per provisional data available on the NSE.
Fund Flow Picture
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting delivery of the stock, which means that investors are bullish on it.
13 stocks saw a long buildup
29 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
84 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.
75 stocks saw long unwinding
Bulk Deals on February 15
Jakharia Fabric: Overskud Multi Asset Management Private Limited purchased 28,000 shares of the company at Rs 188 per share on the NSE.
Rajnish Wellness: Dhwaja Shares & Securities Pvt Ltd bought 1.02 lakh shares of the company at Rs 182.26 per share on the BSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
TRF: Board meeting is scheduled on February 20 to consider certain matters in relation to the terms and conditions of the issue of NCRPS, including fixation of the issue price for the NCRPS to be offered in the issue.
Infosys: UB Pravin Rao - Chief Operating Officer and Whole-time Director, Jayesh Sanghrajka - Interim CFO and Sandeep Mahindroo - VP, Financial Controller and Head-Investor Relations will participate in the Chasing Growth 2019 Investors’ Conference hosted by Kotak Institutional Equities on February 18 in Mumbai.
IDFC First Bank: Company's official will be meeting Capital Research Global Investors on February 18.
Welspun Enterprises: The meeting of the equity shareholders of the company to be held on March 19, in the matter of the Scheme of Amalgamation of Anjar Road Private Limited with the company and their respective shareholders and creditors.
Shriram City Union Finance: Company's officials will be meeting ICICI Securities on February 18.
IOL Chemicals & Pharmaceuticals: Extra-Ordinary General Meeting (EOGM) to be held on March 13, 2019.
MEP Infrastructure Developers: Earnings Call with analyst(s) is scheduled to be held on February 18 to analyse financial results and company's performance for the third quarter and nine months ended December 31, 2018.
Sterling Biotech: Meeting of the 12th Committee of Creditors of the company is scheduled to be held on February 20.
Birla Precision Technologies: Board meeting is scheduled on February 22 to consider the issue of shares on preferential basis, issue of shares to eligible employees under Employee Stock Option Scheme 2019 and any other business items.
Avanti Feeds: Audio Conference Call for investors will be held on February 19 to discuss the un-audited financial results for the quarter ended December 2018.
Metalyst Forgings: Board meeting was scheduled to be held on February 15. It has been postponed and rescheduled to be held on February 20 to consider the un-audited financial results for the quarter and nine months ended December 2018.
Tata Communications: Company's officials will be attending Kotak Conference on February 18.
Schaeffler India: Management of the company - Dharmesh Arora, Managing Director & CEO and Satish Patel, Director-Finance & CFO will be meeting institutional investors on February 18 to discuss the earnings and results for the quarter and year ended December 2018.
Voltas: Company's officials will be meeting FidelityManagement & Research (FMR), HK and Morgan Stanley on February 18, and will be attending Kotak Securities Conference on February 19.
ITI Limited: Company's officials will be meeting with certain financial/institutional investors on February 18.
Mahindra Logistics: Company's officials will be meeting analysts/investors on February 18, 19 and 20.
Mahindra and Mahindra: Company's officials will be meeting analysts/investors on February 18, 19 and 20.
Eicher Motors: Company's officials will be meeting analysts/investors on February 18 and 19.
Pidilite Industries: Company's officials will be meeting analysts/investors on February 19.
KEC International: Company's officials will be attending Kotak Securities conference on February 19.
Standard Chartered PLC: Meeting of a committee of the board of directors of the company will be held on February 26 for the purpose of approving the release of the company's results for the financial year ended December 2018 and considering the payment of any final dividend for the financial year.
Tata Motors: Company's officials will be meeting analysts/investors between February 18 and 22.
Stocks in news
PNC Infratech: Company received an order from PWD for a project worth Rs 186.48 crore.
Religare Enterprises: Board approves raising up to Rs 500 crore via NCDs.
Dr Reddy's Labs: Duvvada plant gets a VAI (Voluntary Action Indicated) status from USFDA, receives EIR for Duvvada facility from the regulator.
Tech Mahindra: Board to consider buyback of shares on February 21.
The company has also withdrawn scheme application filed with National Company Law Tribunal for the proposed scheme of Merger by Absorption between subsidiary Tech Mahindra Growth Factories Limited with the company.
Yes Bank: RBI letter pulls up bank for February 12 press release claiming nil divergence. RBI said it takes issuance of press release seriously as bank's risk assessment report was confidential and should not have been divulged.
Zee Entertainment to SEBI: No pending information, announcements that may have a bearing on company's operational performance, stock price/volume behaviour. SEBI had asked if the company had made/planned to make any announcement that could have an impact on stock price.
Jaypee Infratech: Two bids placed to acquire the company as the deadline to submit final bids ended on February 15. NBCC & Suraksha Group placed bids to acquire the company, according to CNBC-TV18 sources.
NBCC: Company submitted a resolution plan for Jaypee Infratech.
Jet Airways: Company looking to raise about Rs 4,000 crore through rights issue, according to CNBC-TV18 sources.
GMR Infra: Company appoints Saurabh Chawla as Executive Director - Finance & Strategy.
Axis Bank: SUUTI sold 3 percent stake in the bank via OFS.
Wipro: SEBI exempts the company from share buyback.
HUDCO: Company raises Rs 2,563 crore through issue of bonds.
Coffee Day Enterprises: Tax Department attaches Rs 2 crore worth of promoter shares in the company.
TRF: Board approved issuance of non-convertible redeemable preference shares to Tata Steel, on a private placement basis for an amount not exceeding to Rs 250 crore.
Paramount Communications: Company bags orders worth Rs 69.53 crore from Kerala State Electricity Board Limited, Kerala, for supply of HT & LT Aerial Bunch Cables, with a delivery schedule of 3 months.
Nahar Industrial Enterprises: ICRA revised its long-term and short-term rating for Rs 1,471 crore bank facilities of the company to A- and A2+ from A and A1 respectively. The outlook on the long-term is stable.
Aurionpro Solutions: In order to focus on the cybersecurity business of the group, Samir Shah has resigned as a Director and Global Chief Executive Officer (CEO) of the company.
Sanghi Industries: ICRA has reaffirmed its credit rating for company's non-convertible debentures of Rs 258 crore and Rs 425 crore worth of bank facilities.
Cyient: Acquisition of Cyient DLM Private Limited has been completed.
Walchandnagar Industries: CARE revised its rating on company's long-term bank facilities to BB+/Stable from BB/Stable.
Empee Distilleries September quarter: Loss at Rs 47.7 crore versus loss Rs 5.7 crore; revenue dips to Rs 24 crore versus Rs 187.3 crore YoY.
Castex Technologies Q3: Loss at Rs 137.87 crore versus loss Rs 392.8 crore; revenue drops to Rs 108 crore versus Rs 125.65 crore YoY.
Amtek Auto Q3: Loss at Rs 85.70 crore versus loss Rs 80.21 crore; revenue falls to Rs 261.55 crore versus Rs 313.90 crore YoY.
Lumax Industries: Board decided to put an in-house electronic facility for manufacturing of PCBs (a critical part to lighting systems) for its captive consumption, keeping in view the increased focus on electronic content in the automobiles, due to requests from OEMs.
Garden Silk Mills: One of its financial creditors, State Bank of India (SBI), a member of consortium of banks has initiated action before Debt Recovery Tribunal (DRT), Ahmedabad for recovery of dues wherein DRT has granted ex-parte relief to SBI and directed the Company, not to alienate and transfer the hypothecated and mortgaged properties.
Reliance Home Finance: Brickwork Ratings revised its rating to AA for company's long-term debt programme, market-linked debentures, subordinated debt and non-convertible debentures (NCDs) public issue and to AA- for upper Tier-II NCDs, inter-alia, due to revision of rating of the parent company, Reliance Capital Limited.
Sai Baba Investment And Commercial Enterprises: Company fixed April 1, 2019 as the record date for the purpose of consolidation of 10 equity shares of Re 1 each into 1 equity share of Rs 10 each.
Sadhana Nitrochem: After becoming aware of erroneous rating, the company had written back to CRISIL instructing them to remove the rating. On January 11, 2019, CRISIL has removed the rating from their site.
KPI Global Infrastructure: Company bags order of 213.75KW solar power plant under captive power producer.
Reliance Infrastructure: V R Galkar ceases to be Director of the company on completion of his tenure.
Karnataka Bank: Bank introduces 475 days special term deposit scheme.
Six stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.For February 18, Adani Enterprises, CG Power, Jet Airways, Jain Irrigation Systems, PC Jeweller and Reliance Power stocks are present in this list.