Yes Securities advised traders to remain on sidelines and wait for some stability to emerge around 10,800 i.e. confluence of support zone.
The market reversed all the gains clocked a day before and finished the session on August 7 sharply lower following a late sell-off.
The 35 basis points repo rate cut delivered by the Reserve Bank of India's Monetary Policy Committee in line with expectations and the measures listed out to boost the NBFC sector failed to lift sentiment.
The BSE Sensex fell more than 400 points from the day's high indicating that the rate cut and measures may not have been perceived to be enough to boost the slowing economy.
The index declined 286.35 points to close at 36,690.50 while the Nifty 50 dropped 92.80 points to 10,855.50, forming a bearish candle on the daily charts.
"The short term trend of Nifty is dicey. The Nifty not showing follow-through upmove post positive pattern could be an indication of uncertainty at the highs," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
The recent low of 10,782 is going to be crucial to maintain positive bias. As long as this area is protected in the next couple of sessions, a possibility of upside bounce is higher, he added.
Yes Securities advised traders to remain on sidelines and wait for some stability to emerge around 10,800 i.e. confluence of the support zone.
The broader markets also fell in line with benchmark indices as the Nifty Midcap index lost 0.75 percent. Among sectors, Nifty Bank, Auto and Metal indices shed 1-2 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,855.50 on August 7. According to the pivot charts, the key support level is placed at 10,802.37, followed by 10,749.23. If the index starts moving upward, the key resistance levels to watch for out are 10,942.17 and 11,028.83.
The Nifty Bank closed at 27,702.05, down by 320.05 points on August 7. The important pivot level, which will act as crucial support for the index, is placed at 27,504.07, followed by 27,306.04. On the upside, key resistance levels are placed at 28,037.87 and 28,373.63.
Call options data
Maximum Call open interest (OI) of 24.47 lakh contracts was seen at the 11,000 strike price. It will act as a crucial resistance level in August series.
This is followed by 11,300 strike price, which now holds 17.78 lakh contracts in open interest, and 11,200, which has accumulated 17.26 lakh contracts in open interest.
Significant Call writing was seen at the 11,500 strike price, which added 3.26 lakh contracts, followed by 11,100 strike price, which added 2.84 lakh contracts. This was followed by 11,000 strike, which added 2.26 lakh contracts.
There was hardly any Call unwinding seen.
Put options data
Maximum Put open interest of 28.99 lakh contracts was seen at 11,000 strike price. This is followed by 10,700 strike price, which now holds 22.15 lakh contracts in open interest and will act as a crucial support level in August series.
It is followed by 10,800 strike price, which has now accumulated 18.58 lakh contracts in open interest.
Put writing was seen at the 10,700 strike price, which added 5.35 lakh contracts, followed by 10,400 strike, which added 0.2 lakh contracts and 10,300 strike, which added 0.15 lakh contracts.
Put unwinding was seen at the 11,300 strike price, which shed 1.73 lakh contracts, followed by 11,000 strike that shed 1.22 lakh contracts and 10,900 strike price which shed 0.91 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.
18 stocks saw a long buildup
27 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
52 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.
65 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Duke Offshore: Annual General Meeting is scheduled to be held on August 31.
Inox Wind: Company has scheduled a conference call for analysts and investors on August 9.
Brigade Enterprises: Conference call on the company's first-quarter ended financial results to be held on August 16.
Voltas: Concall for Q1FY20 earnings is re-scheduled on August 8.
Emami Realty: Company will announce its June quarter earnings on August 14.
Kinetic Engineering: Company will announce its June quarter earnings on August 14.
Kridhan Infra: Company will announce its June quarter earnings on August 14.
Cox & Kings Financial Service: Company will announce its June quarter earnings on August 14.
Indiabulls Integrated Services: Company will announce its June quarter earnings on August 14.
Rico Auto Industries: Senior officials of the company will be attending an investor conference hosted by Emkay Global Financial Services August 8.
Stocks in news
Results on August 8: UltraTech Cement, Tata Chemicals, Engineers India, Adani Enterprises, Spacenet Enterprises, Mishra Dhatu Nigam, Proseed India, Jindal Stainless (Hisar), Mahanagar Gas, Adani Transmission, Rail Vikas Nigam, Procter & Gamble, Inspirisys Solutions, Advanced Enzyme Technologies, Max Ventures, Aspinwall, Healthcare Global Enterprises, Ircon International, Endurance Technologies, Hitech Corporation, Fairchem Speciality, Capacit'e Infraprojects, Gokul Agro Resources, Stampede Capital, Max India, Stampede Capital, Ganges Securities, Avadh Sugar, TCNS Clothing, Infibeam Avenues, Quick Heal, IndoStar Capital Finance, Wonderla Holidays, Navneet Education, Take Solutions, Sanghvi Movers, NRB Industrial Bearings, Rane Holdings, Tata Investment Corporation, Indo Count Industries, Texmaco Infrastructure, Gujarat Pipavav Port, Akzo Nobel India, Aurionpro Solutions, Rupa & Company
Results on August 8: Thermax, Godrej Properties, Texmaco Rail, Kirloskar Industries, LT Foods, Maral Overseas, Revathi Equipment, India Motor Parts, Igarashi Motors India, Radico Khaitan, Kesoram Industries, Kokuyo Camlin, Greaves Cotton, Dredging Corporation, Gujarat Narmada Valley Fertilizers, Aries Agro, NBCC (India), City Union Bank, Clariant Chemicals, Hotel Rugby, Shivam Autotech, Dynamatic Technologies, Huhtamaki PPL, Nava Bharat Ventures, Gujarat Industries Power Company, Career Point, Aksh Optifibre, ISMT, Kopran, Mukand, Religare Enterprises, Apar Industries,
Results on August 8: Emami, Page Industries, Oil Country Tubular, Ratnamani Metals & Tubes, Mukand Engineers, Pritish Nandy Communications, Rashtriya Chemicals and Fertilizers, Bal Pharma, Hind Rectifiers, Hexaware Technologies, HOV Services, Gujarat Alkalies and Chemicals, Southern Petrochemicals Industries Corporation, UCO Bank, Tamilnadu Telecommunication
Tata Steel Q1: Consolidated profit falls 64.3 percent to Rs 693 crore versus Rs 1,940.8 crore, revenue rises 1.27 percent to Rs 35,947.1 crore YoY.
HCL Technologies Q1: Profit falls 13 percent to Rs 2,220 crore versus Rs 2,568 crore, revenue rises 2.7 percent to Rs 16,425 crore versus Rs 15,990 crore QoQ. Dollar revenue growth at 3.8 percent and constant currency growth at 4.2 percent QoQ. The company maintains FY20 constant currency revenue growth guidance at 14-16 percent.
HPCL Q1: Profit falls to Rs 810.9 crore versus Rs 2,969.9 crore, revenue rises 4.5 percent to Rs 70,988.9 crore against Rs 67,938.1 crore QoQ. HPCL says April-June refinery throughput was down on planned unit shutdown.
Aurobindo Pharma Q1: Profit jumps 39.5 percent to Rs 635.7 crore versus Rs 455.6 crore, revenue rises 28.1 percent to Rs 5,444.6 crore versus Rs 4,250.3 crore YoY.
Petronet LNG Q1: Profit jumps 21.3 percent to Rs 561.9 crore versus Rs 463.3 crore, revenue rises 2.7 percent to Rs 8,613.4 crore versus Rs 8,383.2 crore QoQ.
Lemon Tree Hotels Q1: Net loss at Rs 2.1 crore against profit of Rs 2.2 crore, revenue increases 11 percent to Rs 140.9 crore versus Rs 126.9 crore YoY.
KEC International Q1: Profit increases 2.1 percent to Rs 88.6 crore versus Rs 86.8 crore, revenue rises 14.6 percent to Rs 2,412 crore versus Rs 2,104.3 crore YoY.
Siemens Q3: Profit jumps 21.4 percent to Rs 248.1 crore versus Rs 204.4 crore, revenue rises 4.1 percent to Rs 3,198.4 crore versus Rs 3,073 crore YoY.
Punjab & Sind Bank Q1: Loss at Rs 30.28 crore against loss at Rs 398 crore; net interest income rises to Rs 567.6 crore versus Rs 710.73 crore YoY.
Adani Green Energy Q1: Loss at Rs 96 crore versus loss at Rs 74.26 crore, revenue rises to Rs 660.8 crore versus Rs 472.2 crore YoY.
Suzlon clarified to the exchange: Company is not aware of any action being contemplated by the bondholders and can’t comment upon the intentions of the bondholders. Company is in discussions with various stakeholders in relation to its outstanding debt including bonds.
Adani Ports: FY20 volume growth to be at the lower end of 10-12 percent growth guidance, promoter pledge to come down in FY20.
Sambhaav Media: Subsidiary VED Technoserve India received a work order.
Maruti Suzuki: July 2019 production falls to 133,265 units against 178,533 units in July 2018.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 383.66 crore, but Domestic Institutional Investors (DIIs) purchased Rs 531.56 crore worth of shares in the Indian equity market on August 7, as per provisional data available on the NSE.
Fund Flow Picture
No stock under F&O ban period on NSE
No stocks are under an F&O ban on August 8.
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.