According to Gaurav Ratnaparkhi of Sharekhan by BNP Paribas, the pullback is likely to subside near 11,700-11,720, which would result in a fresh move down.
The market closed a rangebound session with moderate gains on July 17, backed by banking & financials, FMCG and technology stocks. However, the correction in auto and energy stocks limited gains on benchmark indices.
The BSE Sensex was up 84.60 points at 39,215.64 while the Nifty climbed 24.90 points to 11,687.50 and formed a small bullish candle which resembles Spinning Top kind of formation on daily charts.
"Technically, this pattern indicates a choppy trend with positive bias. The key overhead resistance of 11,650 (resistance as per the concept of change in polarity) was broken on the upside, but still there is no convincing upside breakout indication as of now," Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.
A similar type of rangebound action is expected in the next 1-2 sessions, he said.
According to Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas, the pullback is likely to subside near 11,700-11,720, which would result in a fresh move down.
The broader market indices did not participate in the pullback and are likely to underperform going ahead as well, he feels.
The Nifty Midcap index was down 0.3 percent and Smallcap index fell 0.2 percent as about 928 shares declined against 874 advancing shares on the NSE.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,687.50 on July 17. According to the pivot charts, the key support level is placed at 11,656.9, followed by 11,626.3. If the index starts moving upward, the key resistance levels to watch out are 11,712.4 and 11,737.3.
The Nifty Bank closed at 30,735.50, up 164.70 points on July 17. The important pivot level, which will act as crucial support for the index, is placed at 30,602.63, followed by 30,469.77. On the upside, key resistance levels are placed at 30,834.03, followed by 30,932.56.
Call options data
Maximum Call open interest (OI) of 32.30 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.
This is followed by 11,800 strike price, which now holds 19.24 lakh contracts in open interest, and 11,700, which has accumulated 17.11 lakh contracts in open interest.
Significant Call writing was seen at the 11,800 strike price, which added 1.44 lakh contracts, followed by an 11,900 strike price, which added 0.59 lakh contracts.
Call unwinding was seen at 11,600 strike, which shed 2.32 lakh contracts, followed by 11,500 strike, which shed 0.9 lakh contracts.
Put options data
Maximum Put open interest of 25.25 lakh contracts was seen at 11,600 strike price. It will act as a crucial support level for the July series.
This is followed by an 11,300 strike price, which now holds 25.13 lakh contracts in open interest and 11,500 strike price, which has now accumulated 23.01 lakh contracts in open interest.
Put writing was seen at 11,600 strike price, which added 4.4 lakh contracts, followed by 11,400 strike which added 2.14 lakh contracts and 11,700 strike, which added 1.6 lakh contracts.
Put unwinding was seen at the 11,200 strike price, which shed 1.05 lakh contracts, followed by 11,000 strike that shed 0.59 lakh contracts and 11,800 strike price which shed 0.40 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting delivery of the stock, which means investors are bullish on it.
33 stocks saw a long buildup
40 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
56 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.
32 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Indo Mines: 26th Annual General Meeting to be held on August 10.
Schaeffler India: Analyst conference call is scheduled for July 24 to discuss the earnings and results for the second quarter and half year ended June 2019.
Deepak Fertilisers & Petrochemicals Corporation: 39th Annual General Meeting to be held on August 14.
Confidence Petroleum India: Company will announce June quarter earnings on July 26.
GE T&D India: Company will announce June quarter earnings on July 24.
Torrent Power: Company will announce June quarter earnings on August 5.
Jyothy Laboratories: Concall for June quarter earnings to be held on July 23.
Shoppers Stop: Concall for June quarter earnings to be held on July 30.
Bosch: Company's officials will meet Franklin Templeton Investments Asia on July 22.
Saksoft: Analyst/ Institutional Investor meeting with the company to be held on July 19.
Stocks in news
Results on July 18: ACC, Cyient, GKW, Sanco Industries, DB Corp, Uttam Galva Steels, Larsen & Toubro Infotech, Hatsun Agro Product, Sterlite Technologies, 8K Miles Software Services, Rallis India, Colgate Palmolive (India), Sasken Technologies, Trident, Pioneer Distilleries, InfoBeans Technologies
Wipro Q1: IT services rupee revenue down 1.6 percent to Rs 14,351.4 crore, dollar revenue degrew 1.3 percent to $2,038.8 million QoQ. The company expects Q2 IT services dollar revenue in the range of $2,039-2,080 million, a growth of 0-2 percent over Q4FY19.
Yes Bank Q1: Profit falls 91 percent to Rs 113.8 crore, net interest income grows 2.8 percent to Rs 2,281 crore YoY; net NPA increases to 2.91 percent versus 1.86 percent and gross NPA rises to 5.01 percent versus 3.22 percent QoQ.
Mindtree Q1: Profit plunges 53.3 percent to Rs 92.7 crore, rupee revenue slips 0.3 percent to Rs 1,834.2 crore, dollar revenue grows 0.8 percent to $264.2 million QoQ.
Mindtree: Company appointed Anilkumar Manibhai Naik as the Non-Executive Chairman.
Punjab & Sind Bank: Fraud of Rs 238 crore by Bhushan Power is being reported to RBI.
NMDC: Karnataka High Court allows plea for Donimalai mining operations and set aside order on Donimalai royalty pay to Karnataka.
Axis Bank: Sanjiv Misra has ceased to be the non-executive (part-time} chairman and Rakesh Makhija to assume charge as non-executive (part-time) chairman.
Suzlon Energy: Company is working on a holistic solution for an outstanding debt and continues to be in discussion with stakeholders w.r.t debt including bonds.
Firstsource Solutions: Vipul Khanna to be MD, CEO.
JSW Energy: Lien on 1.06 percent promoter stake released on July 9.
Oil India: Company emerged as the biggest winner of oil & gas blocks under Open Acreage Licensing Policy (OALP) rounds II & III by winning 12 blocks out of 32 blocks for which bids were submitted by leading Operators.
Mcleod Russel: 20,44,670 shares of the company held by Williamson Financial Services have been invoked by Vistra ITCL (India) [Trustee for the joint lenders namely - IL&FS Financial Services, IL&FS Infrastructure Debt Fund, Aditya Birla Finance] on July 8.
Newgen Software Technologies: Company secured a patent for automated quality and usability assessment of scanned documents.
S Chand and Company: CARE reaffirmed its rating on long term bank facilities at A with a stable outlook.
DFM Foods Q1: Profit jumps to Rs 7.63 crore versus Rs 5.01 crore; revenue rises to Rs 127.72 crore versus Rs 98.69 crore YoY.
(For more bulk deals, click here)
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 16.97 crore, but Domestic Institutional Investors (DIIs) bought Rs 208.88 crore worth of shares in the Indian equity market on July 17, as per provisional data available on the NSE.
Fund Flow Picture
Five stocks under F&O ban period on NSE
For July 18, DHFL, IDBI Bank, Reliance Capital, Reliance Infrastructure and Tata Elxsi are under the F&O ban period.Securities in ban period under the F&O segment include companies in which 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.