Siddhartha Khemka of MOFSL said the market is looking for further triggers for fresh upmove.
The market closed in the red after four straight sessions on August 28 due to profit booking and fears of a global recession. Banks, auto, metals and pharma stocks pulled the market down while IT outperformed, rising over a percent.
The BSE Sensex was down 189.43 points at 37,451.84 while the Nifty 50 fell 59.30 points to 11,046.10 ahead of the expiry of August futures & options contracts, forming a bearish candle on daily charts.
"Weakness in the Nifty could indicate a short term negative reversal in the market. There is a possibility of some more weakness in the next 1-2 sessions," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
But, the expected decline is unlikely to damage the recent uptrend status of the Nifty, he said, adding important supports to be watched are around 10,900-10,850 levels, where one may expect a reliable upside bounce from the lows.
Siddhartha Khemka, Head - Retail Research at MOFSL said the market is looking for further triggers for fresh up move.
"For now, the market sentiments seem to have been swaying between the global concerns and some of the positive local factors (government stimulus packages, better monsoon, lower crude oil prices, etc) which could keep the markets rangebound for some time.
The broader markets were also caught in a bear trap with the Nifty Midcap index falling 1 percent and Smallcap index losing 0.65 percent.
We have collated 14 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,046.10 on August 28. According to the pivot charts, key support level is placed at 10,979.3, followed by 10,912.5. If the index starts moving upward, key resistance levels to watch out for are 11,121.3 and 11,196.5.
Nifty Bank closed at 27,804.30, down 1.14 percent on August 28. The important pivot level, which will act as crucial support for the index, is placed at 27,594.13, followed by 27,383.96. On the upside, key resistance levels are placed at 28,055.03 and 28,305.77.
Call options data
Maximum Call Open Interest (OI) of 46.46 lakh contracts was seen at the 11,200 strike price. It will act as a crucial resistance level in the August series.
This is followed by 11,100 strike price, which now holds 36.74 lakh contracts in open interest, and 11,000, which has accumulated 28.23 lakh contracts in open interest.
Significant Call writing was seen at the 11,100 strike price, which added 14.12 lakh contracts, followed by 11,200 strike price, which added 11.60 lakh contracts and 11,000 strike which added 5.53 lakh contracts.
Call Unwinding was seen at 11,400 strike price, which shed 6.78 lakh contracts, followed by 11,300 strike, which shed 1.7 lakh contracts and 10,900 strike which shed 1.13 lakh contracts.
Put options data
Maximum Put Open Interest of 43.32 lakh contracts was seen at 11,000 strike price, which will act as crucial support in August series.
This is followed by 10,800 strike price, which now holds 30.25 lakh contracts in Open Interest, and 10,700 strike price, which has now accumulated 24.30 lakh contracts in open interest.
Put writing was seen at the 11,000 strike price, which added 8.83 lakh contracts, followed by 11,100 strike, which added 5.86 lakh contracts and 10,800 strike, which added 2.31 lakh contracts.
Put unwinding was seen at the 10,600 strike price, which shed 5.84 lakh contracts, followed by 10,500 strike that shed 4.23 lakh contracts and 10,400 strike price which shed 3.54 lakh contracts.
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.
42 stocks saw a long buildup
Not a single stock saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
On August 28, not a single stock saw short-covering.
120 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.
1 stock saw long unwinding
Analyst or Board Meetings/Briefings
Lakshmi Vilas Bank: Shareholders meeting - AGM to be held on September 27.
Indiabulls Integrated Services: 12th Annual General Meeting to be held on September 30.
Tiger Logistics (India): Annual General Meeting to be held on September 27.
Industrial Investment Trust: Annual General Meeting to be held on September 21.
TVS Motor Company: Company's officials will meet analyst of UBS Securities India on August 29.
Navkar Corporation: Officials of the company will be attending the Investor Conference organised by Kotak Securities on August 29.
Container Corporation of India: Company's officials will participate in Dolat Capital Market's DART India Conference on September 19.
Mirza International: Company has scheduled Conference Call on financial results of the company for the first quarter, with Analyst on August 30.
Mahindra Holidays: Company's officials will meet Julius Baer Group on August 29.
Shreyas Shipping & Logistics: Company's officials will participate in Kotak Securities Conference — Logistics Day on August 29.
Stocks in the news
InterGlobe Aviation: IndiGo approved alteration in Articles of Association of the company as a special resolution. Meleveetil Damodaran is appointed as Independent Director and Anil Parashar at Non-Executive Director.
Piramal Enterprises: Board decided to defer the issue of privately-placed NCDs worth up to Rs 3,000 crore, to a future date.
Indiabulls Housing Finance: Shareholders approved up to Rs 1.5 lakh crore NCDs in FY20.
L&T Finance Holdings: IIFL Wealth Group to acquire the company's wealth management business.
Nestle India: NSE to include Nestle in Nifty50 from September 27, and will remove Indiabulls Housing Finance.
Nifty IT Index Changes: Hexaware Technologies and Just Dial will replace Infibeam Avenues and Oracle Financial Services Software in Nifty IT index.
Sugar Stocks: Cabinet approved export subsidy for exporting 60 lakh metric tonne of sugar. Sugar export subsidy will go directly to farmer accounts.
FDI: 100 percent FDI through automatic route allowed in coal mining & sale, coal mining & associated infra and contract manufacturing. FDI rules regarding domestic procurement for Single-brand Retail eased. Cabinet allowed 26 percent FDI with government nod in digital media dealing with news & current affairs.
Lakshmi Vilas Bank: Parthasarathi Mukherjee resigned as Managing Director & Chief Executive Officer of the bank. Also approved raising up to Rs 500 crore via debt and equity.
Khadim India: Infomerics Valuation and Rating reaffirmed its credit rating on the company's commercial paper at A1+.
Spring Fields Infraventure: Company received purchase order worth Rs 1.93 crore from G Narayanamma Institute of Technology & Science, G Pulla Reddy Degree and PG College, and G Pulla Reddy Engineering College.
Balaji Amines: Subsidiary Balaji Speciality Chemicals completed REACH Registration process for Ethylenediamine.
Satin Creditcare Network: Committee meeting to be held on August 31, for the issuance of non-convertible debentures up to the amount of Rs 120 crore through private placement.
Kingfa Science & Technology (India): Company's newly set-up manufacturing facility in Chakan Industrial Area, Pune will be starting its commercial production w.e.f September 2.
Autolite (India): Company appointed Lokesh Kasat as additional director and independent director.
National Fertilizers: Comptroller and Auditor General of India has appointed Mehra Goel & Co., Chartered Accountants and S Mann & Co, Chartered Accountants as Joint Statutory Auditors of the company.
Cox & Kings Financial Service: Jayesh Shah resigned from the position of Independent Director of the company.
Hero MotoCorp: Company extended title sponsorship of Caribbean Premier League for three years.
Infosys: Company strengthened collaboration with Microsoft to offer new solutions for clients to accelerate digital transformation.
(For more bulk deals, click here)
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 935.27 crore, while Domestic Institutional Investors (DIIs) bought net Rs 359.32 crore worth of shares in the Indian equity market on August 28, as per provisional data available on the NSE.
Fund Flow PictureThe Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .