Gaurav Ratnaparkhi of Sharekhan by BNP Paribas said unless Nifty breaks 11,200 on the downside it can head towards 11,400-11,450 over the next few sessions.
The market snapped out of its six-day losing streak with the benchmark indices closing marginally higher amid volatility on July 26, which was partly led by short covering and long buildup.
The pull-back rally seen on July 26 was after benchmark indices shed more than 3.5 percent over the previous six consecutive sessions, driven by banking and financials and auto stocks.
The BSE Sensex was up 51.81 points at 37,882.79, while the Nifty50 gained 32.10 points at 11,284.30 and formed a small bullish candle on daily charts.
The index fell 1.18 percent for the week and formed a bearish candle for the third consecutive week, which indicated that the bears still have the upper-hand on Dalal Street. Hence the pull-back rally seen on July 26 can be extended smartly only if the index closes decisively above its 11,300 levels in the coming sessions, experts feel.
"The index formed a small bodied candle on the daily scale and a Bearish candle on the weekly chart, which indicates that selling is seen at higher levels. The immediate structure of the index is in under pressure, but now it has to surpass the 11,320 zone and hold it to witness a short-term bounce towards 11,365 then 11,420 levels, while a hold below the same could drag it towards 11,200 zone," Chandan Taparia, Associate Vice President, Analyst-Derivatives at Motilal Oswal Financial Services, told Moneycontrol.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas also said that unless the Nifty breaks 11,200 on the downside, it can head towards 11,400-11,450 over the next few sessions.
The broader markets were mixed in trade once again with the Nifty Midcap index gaining 0.6 percent while the Smallcap index was down 0.05 percent. For the week, indices lost 1.6 percent and 2.5 percent respectively.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,284.30 on July 26. According to the pivot charts, the key support level is placed at 11,227, followed by 11,169.7. If the index starts moving upward, the key resistance levels to watch for out are 11,324.6 and 11,364.9.
The Nifty Bank closed at 29,325.30, up by 282.25 points on July 26. The important pivot level, which will act as crucial support for the index, is placed at 29,086.84, followed by 28,848.37. On the upside, key resistance levels are placed at 29,471.44, and 29,617.57.
Call options data
Maximum Call open interest (OI) of 13.98 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level in August series.
This is followed by 11,800 strike price, which now holds 12.55 lakh contracts in open interest, and 11,500, which has accumulated 11.99 lakh contracts in open interest.
Significant Call writing was seen at the 11,800 strike price, which added 2.73 lakh contracts. This was followed by the 11,300 strike price, which added 2.5 lakh contracts and 11,900 strike which added 1.54 lakh contracts.
There was hardly any Call unwinding seen on first day of August series.
Put options data
Maximum Put open interest of 29.08 lakh contracts was seen at 11,000 strike price. It will act as a crucial support level in August series.
This is followed by an 11,200 strike price, which now holds 21.02 lakh contracts in open interest and an 11,300 strike price, which has now accumulated 13.66 lakh contracts in open interest.
Significant Put writing was seen at the 11,300 strike price, which added 2.57 lakh contracts, followed by 10,500 strike which added 0.93 lakh contracts and 11,000 strike that added 0.85 lakh contracts.
There was hardly any Put unwinding seen on first day of August series.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.
76 stocks saw a long buildup
43 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
38 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.
7 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Asian Paints: The company, through its representatives, will be meeting the officials/ representatives of Vontobel Asset Management at Mumbai on July 29.
MAS Financial Services: The company has scheduled a conference call with analysts and investors on July 31.
Sarda Energy & Minerals: The company will announce its June quarter earnings on August 3.
Aarti Drugs: The Quarterly conference Call for Investors and Analysts has been scheduled on July 29.
Mahindra & Mahindra Financial Services: The company's officials will meet Invesco Mutual Fund and Bajaj Allianz Insurance on July 30.
Sundaram Finance: The company will announce its June quarter earnings on August 6.
KEI Industries: The company will announce its June quarter earnings on August 5.
IRB Infrastructure: The company will announce its June quarter earnings on August 2.
Corporation Bank: The company will announce its June quarter earnings on August 3.
Aster DM Healthcare: Analysts/ Institutional Investor call is scheduled to be held on August 8.
Sutlej Textiles & Industries: 14th Annual General Meeting of the shareholders will be held on August 22.
Stocks in news
Results on July 29: Dr Reddy's Laboratories, IRB InvIT Fund, Supreme Industries, IFB Agro Industries, Bank of Maharashtra, DLF, General Insurance Corporation of India, Navin Fluorine International, Kingfa Science & Technology (India), Sanofi India, Bharat Electronics, Orient Cement, GHCL, Lloyds Steels Industries, India Grid Trust, Gokaldas Exports, Adroit Infotech, Sun Pharma Advanced Research Company, Century Enka, JMC Projects (India), Castrol India, Dalmia Bharat Sugar, Shriram City Union Finance, Chennai Petroleum Corporation, Kansai Nerolac Paints, Rane Engine Valve, Transport Corporation of India, Alembic Pharmaceuticals, Tata Sponge Iron, Cochin Shipyard, Shalby, AYM Syntex, Strides Pharma Science, V2 Retail, Valecha Engineering, Indian Card Clothing Company, EID Parry India, KPR Mill, Muthoot Capital Services
Vedanta Q1: Consolidated profit falls 11.9 percent to Rs 1,351 crore versus Rs 1,533 crore, revenue declines 3.7 percent to Rs 21,374 crore versus Rs 22,206 crore YoY.
Mahindra Lifespace Q1: Consolidated profit slips 51.3 percent to Rs 13.11 crore versus Rs 26.90 crore, revenue dips 31 percent to Rs 106.22 crore versus Rs 153.95 crore YoY.
TeamLease Services Q1: Consolidated profit plunges 13.8 percent to Rs 18.79 crore versus Rs 21.81 crore, revenue rises 21.9 percent to Rs 1,251.23 crore versus Rs 1,026.57 crore YoY.
Vodafone Idea Q1: Loss at Rs 4,873.9 crore versus loss of Rs 4,881.9 crore, revenue falls to Rs 11,270 crore versus Rs 11,775 crore QoQ.
ICICI Bank Q1: Profit at Rs 1,908 crore versus loss of Rs 119.5 crore, NII rises 26.8 percent to Rs 7,737.4 crore versus Rs 6,102 crore YoY; gross NPA falls to 6.5 percent versus 6.7 percent and net NPA declines to 1.77 percent versus 2.06 percent QoQ.
Unichem Labs Q1: Consolidated loss at Rs 6.2 crore versus loss of Rs 20.4 crore, revenue rises 23.4 percent to Rs 297.7 crore versus Rs 241.2 crore YoY.
PNB Housing Finance: CRISIL revised company's long-term bank facilities outlook to 'negative' from 'stable', downgraded commercial papers to 'A1' from 'A1+'.
Escorts Q1: Consolidated profit dips 27.6 percent to Rs 87.6 crore versus Rs 121 crore, revenue declines 5.8 percent to Rs 1,440.5 crore versus Rs 1,529 crore YoY.
Eris Lifesciences Q1: Consolidated net profit rises 17.4 percent to Rs 84 crore versus Rs 71.5 crore, revenue increases 9.4 percent to Rs 274 crore versus Rs 250.7 crore YoY.
Havells India Q1: Consolidated net profit falls 16 percent to Rs 177.1 crore versus Rs 211.2 crore, revenue rises 4.5 percent to Rs 2,717 crore versus Rs 2,600.7 crore YoY.
Auto Stocks: GST Council decided to reduce GST rate on electric vehicles from 12 percent to 5 percent and electric vehicles chargers from 18 percent to 5 percent.
Torrent Pharma: The company received approval from the US FDA for Nystatin cream, an antifungal medication is used to treat Candida infections of skin.
Tata Sponge Iron: India Ratings assigned a long-term issuer rating of AA to the existing / proposed bank facilities and outlook is stable.
Power Mech Projects: The company received a communication from State Project Director, Samagra Shiksha, Andhra Pradesh cancelling an order worth Rs 512.78 crore.
Bharti Airtel: The company announced the allotment of shares to the shareholders of Tata Teleservices (Maharashtra) and Tata Teleservices Limited.
Bajaj Holdings & Investment: The company appointed Anish Amin, President, Group Assurance, Risk and M&A, BFS as the Chief Risk Officer.
GTPL Hathway: Viren Thakkar, Chief Financial Officer tendered his resignation due to personal reasons.
Confidence Petroleum Q1: Profit rises to Rs 15.32 crore versus Rs 13.36 crore, revenue climbs to Rs 279.89 crore versus Rs 190.06 crore YoY.
KPIT Technologies: The company, through its subsidiary in the USA, has reimbursed Sparta Inc fully and the same has been accounted for during the quarter for $2.8 million (around Rs 19.46 crore) after settlement agreement between Sparta Inc and Copart Inc.
ABB India June Quarter: Standalone profit rises to Rs 130.40 crore versus Rs 102.15 crore, revenue increases to Rs 1,725.75 crore versus Rs 1,665.72 crore YoY.
Kilburn Engineering: CARE revised credit rating to B (negative) from BB+ (stable) for company's credit facilities of Rs 195 crore.
Uflex: Company sold 82 percent shares of wholly owned subsidiary company - Utech Developers Limited.
Future Lifestyle Fashions: The company received Rs 300 crore by issuing more than 64.79 lakh shares at Rs 463 per share on a preferential basis to Apollo India Private Equity IV (Mauritius) Limited.
Polycab India Q1: Consolidated profit jumps to Rs 135.3 crore versus Rs 77 crore, revenue rises to Rs 1,932.98 crore versus Rs 1,682.65 crore YoY.
Aditya Birla Fashion and Retail: The company completed the acquisition of a 51 percent stake in Finesse and consequently. Finesse will become a subsidiary.
NHPC: NCLT approves company's Rs 907 crore bid for 500 MW Lanco Teesta Hydro Power project.
Music Broadcast Q1: Profit falls to Rs 8.43 crore versus Rs 13.50 crore, revenue dips to Rs 69.78 crore versus Rs 75.68 crore YoY.
KPIT Technologies Q1: Consolidated profit rises to Rs 30.69 crore versus Rs 30.45 crore, revenue increases to Rs 505.75 crore versus Rs 501.3 QoQ.
Plastiblends India Q1: Profit rises to Rs 11.5 crore versus Rs 10.06 crore, revenue increases to Rs 174.22 crore versus Rs 160.87 crore YoY.
Granules India: The company's Bonthapally facility, Telangana completed the USFDA inspection with one 483 observation which is procedural in nature.
Indraprastha Medical Corporation Q1: Profit rises to Rs 8.52 crore versus Rs 6.5 crore, revenue increases to Rs 203.7 crore versus Rs 189.4 crore YoY.
Aarti Drugs: CRISIL upgraded the long-term rating from A/Positive to A+/Stable.
Usha Martin Q1: Consolidated profit jumps to Rs 382.66 crore versus Rs 11.78 crore (due to income from discontinued operations), revenue fall to Rs 559.73 crore versus Rs 601.06 crore YoY.
VST Industries Q1: Profit jumps to Rs 75.68 crore versus Rs 61.24 crore, revenue rises to Rs 329.24 crore versus Rs 263.05 crore YoY.
Sheela Foam: The company acquired Interplasp SL (Spain) which is engaged in the manufacture and marketing of slabstock polyurethane foam for bedding, furniture and other applications in Spain and Portugal.
IDFC: The company will continue to explore other options / opportunities to suitably divest its securities business after talks between IDFC Financial Holding Company and The Chatterjee Group failed.
Mahindra Lifespace Developers: Vimal Agarwal is appointed as Chief Financial Officer.
Dalmia Bharat: NCLT approved the company's resolution plan for the revival of Murli Industries.
Elecon Engineering Q1: Profit falls to Rs 0.45 crore versus Rs 7.5 crore; revenue dips to Rs 271.4 crore versus Rs 303.5 crore YoY.
Seshasayee Paper and Boards: The company fixed a record date for the purpose of the sub-division of existing equity share of face value of Rs 10 each fully paid up into five equity shares of face value of Rs 2 each fully paid up, as August 20.
Yes Bank: AT1 bond rating revised by CARE from A to A-; outlook remains negative.
Karda Constructions: ICRA assigned BB- credit rating for proposed issue of Unsecured Non Convertible redeemable debentures amounting to Rs 50 crore on private placement by the company.
Power Mech Projects Q1: Consolidated profit rises to Rs 28.4 crore versus Rs 24.4 crore, revenue increases to Rs 491.2 crore versus Rs 461.93 crore YoY.
Moil Q1: Profit dips to Rs 90.67 crore versus Rs 113.44 crore, revenue falls to Rs 280.07 crore versus Rs 313.52 crore YoY.
Minda Industries: Commercial paper of Rs 30 crore has been redeemed.
Cadila Healthcare: USFDA clears Ankleshwar unit with no observations.
Usha Martin: India Ratings raises company's long term rating to BBB+ from BB+.
Manpasand Beverages: Arrested officials released on bail by Gujarat High Court.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 1,503.26 crore, but Domestic Institutional Investors (DIIs) bought Rs 1,917.52 crore worth of shares in the Indian equity market on July 26, as per provisional data available on the NSE.
Fund Flow Picture
No stock under F&O ban period on NSE
For July 29, not a single stock is under the F&O ban period.Securities under the ban period under the F&O segment include companies in whose security has crossed 95 percent of the market-wide position limit.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.