Sunil Shankar Matkar Moneycontrol News
After a flat market opening, bears took charge of Dalal Street in the morning trade and tightened their grip as the day progressed Monday. The Nifty50 broke psychological 11,000-mark and closed near day's low on account of profit booking after a more than 2 percent rally seen last week, forming 'Bearish Belt Hold' pattern on the daily chart.
A ‘Bearish Belt Hold’ pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and small lower shadow.
The last Bearish Belt Hold pattern was formed on June 27, the day before June futures & options contracts expired.
The major carnage was seen in broader markets as the Nifty Midcap and Smallcap indices fell 2.6 percent and 3 percent respectively.
The Nifty50 after opening flat caught into bear trap and hit an intraday low 10,926.25. The index remained sharply lower throughout the session and closed 82 points lower at 10,936.90.
"Nifty50 registered a 'Bearish Belt Hold' kind of formation as it bridged the bullish gap zone of 10,976–10,999 registered on July 12, suggesting downside pressure in the near term," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
He said in a sense Monday's move is looking like a consolidation breakdown on lower time frame charts questioning the recent breakout above 10,900 levels. "Hence, it looks imminent for bulls to defend the breakout gap between 10,860-10,876 registered on July 10.
Failure to do so may result in expansion of downswing initially towards its 50-Day Moving Average whose value is present around 10,738 levels, he feels. Hence, short term traders for time being should adopt a neutral stance and look for stability before going long, he said. "Strength in indices may resume on a close above 11,020 levels."
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan said the index found support near the May high of 10,929, which now acted as a support as per the principle of role reversal. "On the downside, 10,850-10,800 is a crucial support zone to watch out for. Extension on the upside is plausible as long as the bulls manage to hold on to the support zone."
India VIX moved up by 5.48 percent at 12.97 levels.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,936.90 on Monday. According to Pivot charts, the key support level is placed at 10,902.17, followed by 10,867.53. If the index starts moving upwards, key resistance levels to watch out are 10,995.47 and 11,054.13.
Nifty Bank
The Nifty Bank index closed at 26,679.80, down 256 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 26,569.43, followed by 26,459.07. On the upside, key resistance levels are placed at 26,864.63, followed by 27,049.46.
Call Options Data
Maximum call open interest (OI) of 39.60 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for July series.
This was followed by the 11,100 strike price, which now holds 32.64 lakh contracts in open interest, and 11,200, which has accumulated 30.81 lakh contracts in open interest.
Call writing was seen at the strike price of 11,000, which added 6.37 lakh contracts, followed by 11,100, which added 5.95 lakh contracts.
Call unwinding was seen at the strike price of 10,800, which shed 1.03 lakh contracts, followed by 10,700, which shed 0.42 lakh contracts and 10,500 which shed 0.35 lakh contracts.
Put Options data
Maximum put open interest of 47.21 lakh contracts was seen at the 10,600 strike price. This will act as a crucial support level for July series.
This was followed by the 10,700 strike price, which now holds 43.69 lakh contracts in open interest, and the 10,800 strike price, which has now accumulated 41.07 lakh contracts in open interest.
There was hardly any Put Writing seen on Monday.
Put Unwinding was seen at 11,000, which shed over 4.4 lakh contracts, followed by 10,700, which shed 3.99 lakh contracts and 10,900 which shed 3.96 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 625.68 crore and domestic institutional investors also offloaded shares worth Rs 70.3 crore in the Indian equity market on Monday, as per provisional data available on the NSE.
Fund Flow Picture:
Stocks with high delivery percentage:
High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.
8 stocks saw long buildup
13 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
80 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.
105 stocks saw long unwinding
Bulk Deals
PVR: MFS International New Discovery Fund bought 2,95,594 equity shares at Rs 1,191.75 per share on the BSE.
Ganga Forging: Aghera Nishant Jaysukhlal bought 90,000 shares at Rs 20.99 per share and Girishchandra Trivedi (HUF) 66,000 shares at Rs 21 per share on NSE.
JTEKT India: Reliance Capital Trustee A/C Reliance Small Cap Fund purchased 60 lakh equity shares, India Acorn Fund 12 lakh shares and White Oak India Equity Fund 13.5 lakh shares at Rs 91.1 per share, respectively. JTEKT Corporation sold 1,14,35,000 shares at Rs 91.16 per share on NSE.
KDDL: Maven India Fundsold 71,007 equity shares at Rs 475 per share and RC TRITEC AG 60,000 shares at Rs 470 per share whereas The Royal Bank of Scotland Plc as Trustee of Jupiter India Fund bought 2,49,403 shares at Rs 473.03 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Kama Holdings: Board meeting for announcement of June quarter earnings is scheduled to be held on July 30.
Swaraj Engines: Board meeting for announcement of June quarter earnings is scheduled to be held on July 30.
EMA India: Board meeting for announcement of June quarter earnings is scheduled to be held on July 24.
Nagarjuna Oil Refinery: Board meeting for announcement of June quarter earnings is scheduled to be held on July 26.
Bombay Dyeing: Board meeting for announcement of June quarter earnings is scheduled to be held on August 7.
Welspun Corp: Board meeting for announcement of June quarter earnings is scheduled to be held on July 23.
Vedanta: Board meeting for announcement of June quarter earnings is scheduled to be held on July 31.
Tecil Chemicals: Board meeting for announcement of June quarter earnings is scheduled to be held on July 23.
Vaibhav Global: Board meeting for announcement of June quarter earnings is scheduled to be held on July 30.
Petronet LNG: Board meeting for announcement of June quarter earnings is scheduled to be held on July 26.
Motor & General Finance: Board meeting for announcement of June quarter earnings is scheduled to be held on August 10.
Mahanagar Gas: Board meeting for announcement of June quarter earnings is scheduled to be held on July 31.
KSB Pumps: Board meeting for announcement of June quarter earnings is scheduled to be held on July 24.
Bharat Gears: Board meeting for announcement of June quarter earnings is scheduled to be held on August 03.
TeamLease Services: Board meeting for announcement of June quarter earnings is scheduled to be held on July 24.
Saregama India: Board meeting for announcement of June quarter earnings is scheduled to be held on July 23.
Karur Vysya Bank: 99th Annual General Meeting is scheduled to be held on August 9.
SRF: 47th Annual General Meeting is scheduled to be held on August 7.
Elgi Equipments: 58th Annual General Meeting is scheduled to be held on August 10.
Nelcast: 36th Annual General Meeting is scheduled to be held on August 13.
Godrej Agrovet: 27th Annual General Meeting is scheduled to be held on August 9.
Madhav Marbles: 29th Annual General Meeting is scheduled to be held on August 11.
Elnet Technologies: 27th Annual General Meeting is scheduled to be held on August 9.
TVS Electronics: 23rd Annual General Meeting is scheduled to be held on August 9.
Prism Cement: 26th Annual General Meeting is scheduled to be held on August 8.
NRB Bearings: 53rd Annual General Meeting is scheduled to be held on August 9.
Vista Pharmaceuticals: Annual General Meeting is scheduled to be held on August 6.
Dabur India: Investors Conference Call is scheduled to be held on August 1.
Parag Milk Foods: Earnings Conference Call is scheduled to be held on August 7.
GPT Infraprojects: Management of the company is scheduled to meet various analysts/investors in Mumbai on July 17.
Coal India: Representatives from company will attend the Investor Meetings (Road Show) with the Investors identified by Merchant Bankers at UK during July 23-24.
Federal Bank: Investor/ Analyst conference call is scheduled to be held on July 17.
Stocks in news
Hindustan Unilever: Q1 profit rises 19.2 percent at Rs 1,529 crore versus Rs 1,283 crore, Revenue jumps 11.2 percent at Rs 9,487 crore versus Rs 8,529 crore (YoY); domestic volume growth at 12 percent versus 11 percent (QoQ) & zero percent (YoY).
BEML: Company signed MoU with L&T to address the indigenisation needs of Indian Defence Market.
Bharat Electronics: The Navratna Defence PSU has signed a Memorandum of Understanding (MoU) with Saab, Sweden, for jointly marketing the L-Band 3D Air Surveillance Radar, RAWL-03, co-eveloped by BEL and Saab.
Sintex Plastics Technology: Q1 profit falls 47 percent to Rs 37.53 crore versus Rs 70.56 crore (YoY) but turned profitable compared to loss at Rs 12.49 crore in March quarter. Revenue from operations drops 12.2 percent to Rs 1,325 crore versus Rs 1,509 crore (YoY), but increases 2.5 percent from Rs 1,292.56 crore (QoQ).
Jay Bharat Maruti: Q1 profit rises 33 percent to Rs 13.44 crore versus Rs 10.12 crore and revenue from operations jumps 16.4 percent to Rs 505.9 crore versus Rs 434.67 crore (YoY).
Gulshan Chemfill: Board has approved raising of funds upto Rs 26 lakh by way of offer and issue of equity shares to the existing shareholders of the company on Rights basis.
Orissa Bengal Carrier: Board has approved the loan facility of Rs 1.25 crore from HDFC Bank.
Sunflag Iron & Steel: Crisil upgraded rating for long term bank loan facilities to A/Stable from A-/Positive and short term bank loan facilities to A1 from A2+. Loan facilities are worth Rs 1,134.75 crore.
Mukand Engineers: Board approved scheme of amalgamation amongst Adore Traders & Realtors, Mukand Global Finance, Mukand Engineers in to Mukand and their respective shareholders and creditors.
Sundaram Multi Pap: Company has met with the terms and conditions of loan restructuring done with State Bank of India and IDBI Bank and therefore Lenders have agreed to release the pledge of 1.50 crore equity shares of wholly owned subsidiary viz. E-Class Education System Limited which were pledged.
HCL Infosystems board meeting on July 25 to consider June quarter results
1 stock under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For July 17, Jet Airways is present in this list.
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