Nagaraj Shetti of HDFC securities said the Nifty is now on the way down towards the next support of 11,150-11,100 levels (previous swing low of mid of May) in the next few sessions.
The market fell for the fifth consecutive session on July 24 with the Nifty closing below 11,300 level ahead of F&O expiry. Banks, auto, metals, pharma and select technology stocks dragged benchmark indices.
The BSE Sensex was down 135.09 points at 37,847.65 while the Nifty 50 declined 59.70 points to 11,271.30, forming bearish candle on daily charts.
As the index fell below the 200-day exponential moving average (11,297), there could be more selling pressure with a bit of volatility in the coming session, experts feel.
"The index is now stone's throw away from the May low of 11,108, which is the make or break level for the medium-term trend. The odds are suggesting a bounce prior to breaking the low of 11,108. Nevertheless, one more push down to 11200 looks possible for the short term," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.
He said traders are recommended to cover their short positions near 11,200 & wait for further evidence to initiate a fresh trade.
Nagaraj Shetti, Technical Research Analyst at HDFC securities also said the Nifty is now on the way down towards the next support of 11,150-11,100 levels (previous swing low of mid of May) in the next few sessions.
The selling pressure was more in broader markets as the Nifty Midcap and Smallcap indices fell 1.5 percent each. About two shares declined for every share rising 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 11,271.30 on July 24. According to the pivot charts, the key support level is placed at 11,214.13, followed by 11,156.97. If the index starts moving upward, the key resistance levels to watch for out are 11,344.13 and 11416.97.
The Nifty Bank closed at 28,952.25, down 175.85 points on July 24. The important pivot level, which will act as crucial support for the index, is placed at 28,797.99, followed by 28,643.8. On the upside, key resistance levels are placed at 29,179.39, followed by 29,406.6.
Call options data
Maximum Call open interest (OI) of 37.66 lakh contracts was seen at the 11,400 strike price. It will act as a crucial resistance level on last day of the July series.
This is followed by 11,500 strike price, which now holds 26.36 lakh contracts in open interest, and 11,300, which has accumulated 26.08 lakh contracts in open interest.
Significant Call writing was seen at the 11,300 strike price, which added 17.35 lakh contracts, followed by an 11,200 strike price, which added 3.05 lakh contracts. This was followed by 11,400 strike, which added 2.94 lakh contracts.
Call unwinding was seen at 11,500 strike, which shed 8.67 lakh contracts, followed by 11,600 strike, which shed 4.73 lakh contracts and 11,700 strike, which shed 4.5 lakh contracts.
Put options data
Maximum Put open interest of 22.51 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level on the last day of July series.
This is followed by an 11,200 strike price, which now holds 21.92 lakh contracts in open interest and a 11,000 strike price, which has now accumulated 19.05 lakh contracts in open interest.
Put writing was seen at the 11,100 strike price, which added 3.09 lakh contracts, followed by an 11,000 strike which added 0.31 lakh contracts and 10,500 strike, which added 0.25 lakh contracts.
Put unwinding was seen at the 11,300 strike price, which shed 17.09 lakh contracts, followed by an 11,400 strike that shed 8.03 lakh contracts and an 11,200 strike price which shed 3.03 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.
9 stocks saw a long buildup
16 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
43 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.
96 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Varun Beverages: Company will host a conference call with investors and analysts on August 1.
Repro India: Earnings Call will be held on July 30.
Shipping Corporation of India: Company will announce its June quarter earnings on August 9.
MCX: Company's officials will meet Securities Investment Management on July 25 and Morgan Stanley on July 26.
GIC Housing Finance: Company said agenda for consideration and approval of unaudited financial results for June quarter is deferred.
Symphony: Board to consider and approve 1st interim dividend for the financial year 2019-20 on July 31.
Zenotech Laboratories: Company will announce its June quarter earnings on August 3.
Puravankara: Conference call is scheduled to be held on July 26.
Jindal Stainless (Hisar): Company will announce its June quarter earnings on August 8.
Indo Rama Synthetics: Company will announce its June quarter earnings on August 6.
Wipro: Company's officials will attend ICICI Securities Bengaluru Day on August 20 and 26th CLSA Investors Forum on September 9.
HCL Technologies: Audited financial results for June quarter and payment of Interim dividend will be considered by the board on August 7.
Stocks in news
Results on July 25: Tata Motors, Bajaj Finance, Bank of Baroda, Ambuja Cements, Biocon, Bajaj Finserv, IFB Industries, Ador Welding, Taj GVK Hotels, Grindwell Norton, Rane Brake Lining, Shreyans Industries, RS Software (India), Banaras Beads, Bharat Bijlee, Eimco Elecon, Tata Steel BSL, Som Distilleries & Breweries, Mold-Tek Technologies, Apcotex Industries, Greenlam Industries, Thirumalai Chemicals, Tata Coffee, Genus Power Infrastructures, Gruh Finance, Mafatlal Finance, Jubilant Industries, Foseco India, Persistent Systems, Mold-Tek Packaging, PVR, MphasiS, AU Small Finance Bank, Onward Technologies, Central Depository Services (India), South Indian Bank
Quess Corp Q1: Profit falls 25.4 percent to Rs 56.3 crore versus Rs 75.5 crore, revenue rises 49.1 percent to Rs 2,394.7 crore versus Rs 1,968.3 crore YoY.
Syndicate Bank Q1: Loss at Rs 980.4 crore versus loss of Rs 1,281.4 crore, NII rises 19 percent to Rs 1,792 crore versus Rs 1,506.1 crore YoY; gross NPA rises to 11.76 percent versus 11.37 percent and net NPA falls to 5.96 percent versus 6.16 percent QoQ.
Bharti Infratel Q1: Consolidated profit jumps 39 percent to Rs 887 crore versus Rs 638 crore, revenue rises 1 percent to Rs 3,712 crore versus Rs 3,674 crore YoY.
PI Industries Q1: Profit rises 23.6 percent to Rs 101.6 crore versus Rs 82.2 crore, revenue falls 6.4 percent to Rs 754.1 crore versus Rs 805.6 crore YoY.
Orient Bell June Quarter: Consolidated profit falls to Rs 0.5 crore versus Rs 0.82 crore, revenue rises to Rs 120.68 crore versus Rs 120.39 crore YoY.
Cigniti Technologies June Quarter: Consolidated profit falls to Rs 28.50 crore versus Rs 29.88 crore, revenue rises to Rs 207.6 crore versus Rs 206.44 crore QoQ.
Sagar Cements Q1: Consolidated profit jumps to Rs 29.51 crore versus Rs 5.82 crore, revenue rises to Rs 344.20 crore versus Rs 274.90 crore YoY.
Security and Intelligence Services (India) Q1: Consolidated profit jumps to Rs 74.91 crore versus Rs 39.5 crore, revenue spikes to Rs 2,008.4 crore versus Rs 1,611.4 crore YoY.
Intellect Design Arena Q1: Consolidated profit falls to Rs 3.4 crore versus Rs 43.52 crore; revenue rises to Rs 342.8 crore versus Rs 298.85 crore YoY.
Shiva Cement Q1: Loss at Rs 4.13 crore versus loss Rs 4.4 crore, revenue falls to Rs 10.65 crore versus Rs 11.62 crore YoY.
Syngene International Q1: Consolidated profit rises to Rs 72 crore versus Rs 66.2 crore, revenue increases to Rs 420.9 crore versus Rs 406 crore YoY.
Newgen Software Technologies Q1: Consolidated profit falls to Rs 3.08 crore versus Rs 62.51 crore, revenue drops to Rs 131 crore versus Rs 204 crore QoQ.
Yes Bank: ICRA has downgraded Basel III Compliant Tier I and Tier II bonds with a negative outlook.
McNally Bharat Engineering Company: Company received one order from SGTORE Company Limited, a Hong Kong-based company, relating to work of 'design and engineering, supply of equipment, two years spare parts, three months consumables" en EPS basis, worth Rs 46.7 crore.
GHCL: Company has placed the commercial paper amounting to Rs 25 crore.
Future Enterprises: CARE cuts debt rating outlook to negative from stable.Sagar Cements: Company allotted 15.5 lakh equity shares at an issue price of Rs 730 per share to the entities belonging to promoter group and others, against the part conversion of a similar number
Tribhovandas Bhimji Zaveri: Acuite assigned long term rating to the company's bank loan facilities at A-/Stable.
Noida Toll Bridge Company: Ajai Mathur resigned from the office of the Managing Director.
DB Realty: Promoter created pledge over 15 lakh shares in favour of Anand Rathi Global Finance.
Sandhar Technologies: Company signed a joint venture agreement with Han Shin Corporation, Republic of Korea, for manufacturing and selling electronic parts and accessories for the automotive industries in India.
Everest Kanto Cylinder: Mohan Jayakar resigned as an Independent Director.
Vodafone Idea and Bharti Airtel: Department of Telecommunication sources said Digital Communications Commission has confirmed the levy of penalty of Rs 3,050 crore on Bharti Airtel, Idea, Vodafone; Department of Telecommunication to take a final decision on levy of penalty - CNBC-TV18.
BHEL: Company formed a joint venture with NTPC for 800 MW coal-fired power plant.
NBCC: In case of Amrapali Group case, the Supreme Court-appointed company to complete the various projects. The percentage of commission/fee of the company is fixed at 8 percent.
Sugar stocks in focus: Cabinet approved Rs 275 per 100 kg fair price for cane for 2019-20.
Wind power companies in focus: Government amends bid norms for power procurement from wind projects to incentivise early project start - CNBC-TV18.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 1,393.71 crore, but Domestic Institutional Investors (DIIs) bought Rs 2,140.26 crore worth of shares in the Indian equity market on July 24, as per provisional data available on the NSE.
Fund Flow Picture
Two stocks under F&O ban period on NSE
For July 25, Dish TV and IDBI Bank 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.