Shabbir Kayyumi of Narnolia Financial Advisors said Nifty future's close above daily weighted average price (VWAP) indicates buyers remain active on the lower side.
Benchmark indices saw a good start with the Sensex gaining more than 160 points amid consolidation on July 15, but it was a bad day for broader markets as the Nifty Midcap index fell 0.8 percent.
The sectoral trend was mixed with Nifty IT index gaining nearly 3 percent and Pharma 1 percent but Bank and FMCG lost half a percent each.
The BSE Sensex gained 160.48 points to close at 38,896.71 while the Nifty 50 rallied 35.90 points to 11,588.40 forming a bearish candle (as the closing price is lower than opening) that resembles a Hammer kind of pattern on the daily scale.
"Nifty has a strong resistance near 11,650-zone. As long as the index trades below said levels we may see profit booking on every rise. Any close above 11,650-zone can lead to good short covering which in turn may push the index towards 11,700-11,750 zones," said Rohit Singre, Senior Technical Analyst at LKP Securities.
"The support for Nifty is near 11,530-11,480 zone. The Nifty Bank has given negative closing at 30,446 with loss of 156 points. Nifty Bank support is near 30,330-30,200 zone and resistance is near 30,600-30850 zone," he said.
According to Nagaraj Shetti, Technical Research Analyst, HDFC Securities, "This pattern indicates a rangebound movement in the market with positive bias. The Nifty currently shows a gradual up move amidst a choppy trend in the last five sessions. This strength of an upside bounce compared to previous sharp weakness (long range bear candle) of 5th and 8th July possibly signals a 'dead cat bounce' in the market."
Shetti said the upper area of 11,625-11,650 levels is going to be strong overhead resistance for the market ahead. Failure to sustain above 11,650 could result in a sharp reversal on the downside.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors said Nifty future's close above daily weighted average price (VWAP) indicated that buyers remained active on the lower side. "As long as Nifty is trading above 11,550 levels, short term move can extend towards the aborted top of 11,640 levels.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,588.35 on July 15. According to the pivot charts, the key support level is placed at 11,540.93, followed by 11,493.57. If the index starts moving upward, the key resistance levels to watch out are 11,627.03 and 11,665.77.
The Nifty bank closed at 30,445.95, down 155.50 points on July 15. The important pivot level, which will act as crucial support for the index, is placed at 30,288.16, followed by 30,130.43. On the upside, key resistance levels are placed at 30,649.66, followed by 30,853.43.
Call options data
Maximum Call open interest (OI) of 32.01 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 17.40 lakh contracts in open interest, and 11,600, which has accumulated 16.77 lakh contracts in open interest.
Significant Call writing was seen at the 11,600 strike price, which added 1.1 lakh contracts, followed by an 11,500 strike price, which added 0.54 lakh contracts.
Call unwinding was seen at 12,100 strike, which shed 0.93 lakh contracts, followed by 12,300 strike, which shed 0.34 lakh contracts and 12,200 strike, which shed 0.24 lakh contracts.
Put options data
Maximum Put open interest of 24.52 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for the July series.
This was followed by an 11,500 strike price, which now holds 20.43 lakh contracts in open interest and 11,400 strike price, which has now accumulated 18.69 lakh contracts in open interest.
Put writing was seen at 11,300 strike price, which added 4.63 lakh contracts, followed by 11,400 strike which added 4.14 lakh contracts and 11,500 strike, which added 2.75 lakh contracts.
Put unwinding was seen at the 10,900 strike price, which shed 0.33 lakh contracts, followed by 11,900 strike that shed 0.12 lakh contracts each.
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.
29 stocks saw a long buildup
36 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
55 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.
40 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Apcotex Industries: Company will announce its June quarter earnings on July 25.
Bank of Baroda: Company will announce its June quarter earnings on July 25.
Just Dial: Company will announce its June quarter earnings on July 22.
Security and Intelligence Services: Company will announce its June quarter earnings on July 24.
Quess Corp: Company will announce its June quarter earnings on July 24.
Tata Power: Company will announce its June quarter earnings on August 1.
Cipla: Company will announce its June quarter earnings on August 7.
Punjab Chemicals: Company will announce its June quarter earnings on August 12.
Vaibhav Global: Company will announce its June quarter earnings on July 30.
Wim Plast: 31st Annual General Meeting to be held on August 10.
Adani Transmission: Company's officials will meet analysts/investors in a non-deal roadshow on July 17.
Hindustan Zinc: Earning call to be held on July 19.
Stocks in news
Results on July 16: HDFC Asset Management Company, TV18 Broadcast, Network18 Media & Investments, Next Mediaworks, Federal Bank, Agro Tech Foods, DCB Bank, 5Paisa Capital, Jay Bharat Maruti, Vikas Multicorp
Automotive Stampings and Assemblies Q1: Loss at Rs 9.5 crore versus loss Rs 5.93 crore; revenue rises to Rs 120.34 crore versus Rs 111.5 crore YoY.
Tata Metaliks Q1: Profit declines to Rs 19.62 crore versus Rs 30.39 crore; revenue rises to Rs 499 crore versus Rs 467.54 crore YoY.
Brigade Enterprises: Company recommended issue of bonus shares in the ratio of 1:2 and to issue 42.75 lakh warrants convertible into 42.75 lakh shares at Rs 269 per share to the promoter group.
Jindal Cotex: Company appointed Kanik Sharma as chairman.
Ashok Leyland: Pantnagar plant to be shut from July 16 to July 24 due to weak demand.
Aditya Birla Fashion: Company acquired 51 percent stake in Finesse International Design.
Capacite Infraprojects: Board meeting of the company is scheduled for July 19 to consider fundraising by way of an issue of further capital.
HDFC Bank: Board will mull a special dividend on July 20.
Jaiprakash Associates: Chandra Prakash Jain resigned as Independent Director.
Greaves Cotton: Company acquired 10.69 lakh shares of subsidiary Ampere Vehicles Private Limited and increased stake from 72.11 percent to 81.23 percent.
PTC India Financial Services: CRISIL assigned provisional rating for company's NCDs at AA+(SO) with a stable outlook.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 216.44 crore, but Domestic Institutional Investors (DIIs) bought Rs 591.72 crore worth of shares in the Indian equity market on July 15, as per provisional data available on the NSE.
Fund Flow Picture
Four stocks under F&O ban period on NSE
For July 16, DHFL, IDBI Bank, Reliance Capital and Reliance Infrastructure 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.