Nagaraj Shetti of HDFC Securities said yet another narrow range movement is expected tomorrow near the key overhead resistance of 12,000 levels.
The market consolidated before ending flat on July 3. Nifty 50 held on at 11,900 levels for the second straight day.
The index formed a small bearish candle, resembling a Doji kind of pattern on daily charts, indicating a rangebound move in the coming session, experts said.
The BSE Sensex rose 22.77 points to 39,839.25 and the Nifty 50 gained 6.50 points to 11,916.80.
"The short term trend of Nifty continues to be a rangebound. Yet another narrow range movement is expected tomorrow near the key overhead resistance of 12,000 levels. Immediate supports to be watched at 11,860," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas said structurally, the index seems to have formed a bearish wedge pattern & is trading near the upper end of the pattern. "Hence the upside looks limited for the benchmark index. 11,980-12,000 is likely to act as a cap for the pullback."
The Nifty Midcap and Smallcap indices outperformed frontliners, rising 0.4 percent each. The market breadth was slightly in favour of bulls; about 956 shares advanced against 812 declining 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 11,916.75 on July 3. According to Pivot charts, the key support level is placed at 11,887.47, followed by 11,858.13. If the index starts moving upward, the key resistance levels to watch out are 11,945.67 and 11,974.53.
The Nifty Bank closed at 31,382.30, up 99 points on July 3. The important Pivot level, which will act as a crucial support for the index, is placed at 31,258.13, followed by 31,133.97. On the upside, key resistance levels are placed at 31,486.83, followed by 31,591.37.
Call options data
Maximum Call open interest (OI) of 15.37 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 12,500 strike price, which now holds 13.68 lakh contracts in open interest, and 12,400, which has accumulated 11.17 lakh contracts in open interest.
Significant Call writing was seen at 12,100 strike price, which added 1.02 lakh contracts, followed by a 12,500 strike price which added 0.61 lakh contracts and 12,400 strike which added 0.49 lakh contracts.
Call unwinding was seen at 12,300 strike, which shed 0.47 lakh contracts, followed by 11,800 strike which shed 0.33 lakh contracts.
Put options data
Maximum Put open interest of 16.89 lakh contracts was seen at the 11,500 strike price. It will act as a crucial support level for the July series.
This was followed by 11,300 strike price, which now holds 12.50 lakh contracts in open interest and 11,700 strike price, which has now accumulated 10.82 lakh contracts in open interest.
Put writing was seen at the 11,700 strike price, which added 1.91 lakh contracts, followed by 11,900 strike price that added 1.38 lakh contracts and 11,300 strike which added 0.35 lakh contracts.
Put unwinding was seen at 12,000 strike, which shed 0.53 lakh contracts, followed by 11,600 strike which shed 0.51 lakh contracts and 11,800 strike which shed 0.45 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on it.
55 stocks saw a long buildup
53 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
37 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.
18 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Mahindra & Mahindra: The one on one con-call with UBS Asset Management will be held on July 4.
GTPL Hathway: Company to consider June quarter results on July 10.
Federal Bank: Company to consider June quarter results on July 16.
International Paper APPM: Company to consider June quarter results on August 1.
Torrent Power: Company's officials will meet the fund manager and analysts on July 4.
NOCIL: Annual General Meeting to be held on July 30.
Stocks in news
Listing: IndiaMART to list shares on exchanges on July 5.
Maharashtra Scooters: Madhur Bajaj resigned as Chairman and Sanjiv Bajaj took over as Chairman.
Mindtree: L&T categorised as the promoter of the company with 60.06 percent stake.
KPI Global Infrastructure: Company has successfully added new capacity of 8.827 MW under 'Independent Power Producer (IPP)' category and with this addition, the total cumulative capacity of solar power plant in operation has gone up to 26.25 MW.
Indian Hume Pipe: CARE revised long term bank facilities rating to A from A+ with stable outlook.
Jindal Steel & Power: JSPL Angul Odisha has produced its highest ever hot metal production of 10845 MT for a single day on July 2.
IVRCL: R Balarami Reddy, Chief Financial Officer has superannuated from the services of the company on June 30, 2019.
Creative Eye: Company to enter into digital space by creating a new web series 'Ishq Aaj Kal' for OTT Platform ZEE 5 which is being produced by Dheeraj Kumar Kochhar, Zuby Kochhar and Sunil Gupta.
PSP Projects: CARE reaffirmed rating on company's long term bank facilities at A+ with stable outlook.
Steel Strips Wheels: June 2019 total wheel rim sales fell to 11.28 lakh versus 12.66 lakh in June 2018, representing a de-growth of 10 percent YoY.
Axis Bank: Enforcement Directorate attached Rs 4.58 crore in bank fraud case.
Cabinet approved a minimum support price for Kharif crops.
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Fund Flow Picture
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 390.18 crore, but Domestic Institutional Investors (DIIs) bought Rs 287.57 crore worth of shares in the Indian equity market on July 3, as per provisional data available on the NSE.
Two stocks under F&O ban period on NSE
For July 4, DHFL and Reliance Capital 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.The Great Diwali Discount!
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