Yes Securities said after the 11 percent correction from the record high, Nifty has touched its two-year mean levels, these levels are intact since January 2017.
The market extended the sell-off seen last week, falling sharply across sectors (except IT) on August 5 after the Centre decided to revoke Article 370 in Jammu & Kashmir and due to aggravated trade war tensions dragged Chinese yuan to 11-year low against the US dollar.
The BSE Sensex slipped 418.38 points or 1.13 percent to 36,699.84 while the Nifty 50 fell 134.80 points or 1.23 percent to 10,862.60, forming a Hammer pattern on the daily charts.
"The near term trend of Nifty continues to be negative. A formation of Hammer type candle pattern could raise some hopes for bulls to come back. But, unless the Nifty shows strength to sustain the gains or any confirmation of upside reversal, we are unlikely to see any upside bounce in the market," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He said next support is placed around 10,780-10,750 levels and the key overhead resistance is now at 10,970 level.
Yes Securities said after the 11 percent correction from the record high, Nifty has touched its two-year mean levels; these levels are intact since January 2017. "Follow-up action near such important support levels need to be closely watched. Improvement in internal breadth & stability is required for any sustained recovery to set-in."
The broader markets underperformed frontliners with the Nifty Midcap index falling 1.4 percent and Smallcap index declining 2 percent. All sectoral indices except IT ended in the red.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,862.60 on August 5. According to the pivot charts, the key support level is placed at 10,798.2, followed by 10,733.8. If the index starts moving upward, the key resistance levels to watch for out are 10,911.4 and 10,960.2.
The Nifty Bank closed at 27,648.05, down by 556.90 points on August 5. The important pivot level, which will act as crucial support for the index, is placed at 27,402.87, followed by 27,157.63. On the upside, key resistance levels are placed at 27,879.97 and 28,111.83.
Call options data
Maximum Call open interest (OI) of 22.13 lakh contracts was seen at the 11,500 strike price. It will act as a crucial resistance level in August series.
This is followed by 11,000 strike price, which now holds 21.59 lakh contracts in open interest, and 11,300, which has accumulated 17.77 lakh contracts in open interest.
Significant Call writing was seen at the 10,900 strike price, which added 8.36 lakh contracts, followed by 11,000 strike price, which added 5.2 lakh contracts. This was followed by 11,300 strike, which added 3.98 lakh contracts.
Call unwinding was seen at 11,400 strike, which shed 0.74 lakh contracts, followed by 11,500 strike, which shed 0.08 lakh contracts.
Put options data
Maximum Put open interest of 29.96 lakh contracts was seen at 11,000 strike price. It will act as a crucial support level in August series.
This is followed by 10,800 strike price, which now holds 18.34 lakh contracts in open interest and 10,500 strike price, which has now accumulated 16.73 lakh contracts in open interest.
Put writing was seen at the 10,800 strike price, which added 1.93 lakh contracts, followed by 10,500 strike, which added 1.35 lakh contracts and 10,100 strike, which added 0.85 lakh contracts.
Put unwinding was seen at the 11,000 strike price, which shed 4.82 lakh contracts, followed by 11,100 strike that shed 1.36 lakh contracts and 10,900 strike price which shed 1.25 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.
13 stocks saw a long buildup
22 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
68 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.
60 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Sunteck Realty: Company will announce its June quarter earnings on August 12.
Sundaram Multi Pap: Company will announce its June quarter earnings on August 12.
Reliance Power: Company will announce its June quarter earnings on August 12.
Jindal Steel & Power: Company will announce its June quarter earnings on August 14.
Sadbhav Engineering: Company will announce its June quarter earnings on August 14.
Nagarjuna Fertilizers: Company will announce its June quarter earnings on August 13.
RITES: Company will announce its June quarter earnings on August 13.
Gallantt Ispat: Company will announce its June quarter earnings on August 13.
Navkar Corporation: Earnings call will be held on August 8 to discuss the financial performance for Q1 FY20.
Solara Active Pharma Sciences: Company, as part of investors engagement activities, has scheduled a conference call with the investors and analysts on August 13 to discuss its Q1 financial results.
Stocks in news
Results on August 6: Indiabulls Housing Finance, Titan Company, JSW Energy, Arvind, Pidilite Industries, Nilkamal, Metropolis Healthcare, Max Financial Services, NLC India, Sheela Foam, Aditya Birla Fashion, Borosil Glass Works, Lux Industries, KIOCL, Khadim India, JITF Infralogistics, BLS International, Xelpmoc Design, The Investment Trust Of India, Linc Pen & Plastics, Shemaroo Entertainment, Thomas Cook, Sutlej Textiles, Ruby Mills, Walchandnagar Industries, Bhartiya International, Asian Granito, Alkyl Amines Chemicals, Mayur Uniquoters, Sundaram Finance, REC, Zodiac JRD-MKJ, Landmark Property, Manali Petrochemicals, Indo Rama Synthetics, Zensar Technologies, Central Bank of India, BASF India, Global Offshore Services, Indowind Energy, Shriram EPC, JHS Svendgaard Laboratories, Minda Industries, Bharat Gears, Gangotri Textiles, Excel Crop Care, HSIL, Shree Renuka Sugars, Kothari Petrochemicals, JK Lakshmi Cement, Asahi India Glass, Kolte-Patil Developers, Gujarat State Fertilizers & Chemicals, Fortis Healthcare, Precot Meridian, Lakshmi Vilas Bank, KM Sugar Mills, Deccan Cements, Tantia Constructions
Berger Paints Q1: Profit jumps 32 percent to Rs 176.8 crore versus Rs 133.9 crore, revenue rises 15.7 percent to Rs 1,716.5 crore versus Rs 1,483 crore YoY.
SRF Q1: Profit surges 41.4 percent to Rs 189.2 crore versus Rs 133.8 crore, revenue rises 9.1 percent to Rs 1,824.4 crore versus Rs 1,676.2 crore YoY.
Indian Hotels Q1: Profit at Rs 22.4 crore versus loss of Rs 16.7 crore, revenue increases 1.3 percent to Rs 571.9 crore versus Rs 564.6 crore YoY.
Torrent Power Q1: Profit jumps 21.7 percent to Rs 277 crore versus Rs 227.3 crore, revenue rises 5.9 percent to Rs 3,736.1 crore versus Rs 3,528.1 crore YoY.
Hindustan Oil Exploration Company Q1: Consolidated profit jumps to Rs 32.66 crore versus Rs 25.49 crore, revenue rises to Rs 56.66 crore versus Rs 42.34 crore YoY.
Mangalam Cement Q1: Profit at Rs 33.2 crore versus loss of Rs 15.3 crore; revenue rises to Rs 333.2 crore versus Rs 254.63 crore YoY.
Bombay Dyeing & Manufacturing Company Q1: Consolidated profit at Rs 27.7 crore versus loss of Rs 93.70 crore, revenue jumps to Rs 648.6 crore versus Rs 397.5 crore YoY.
Bank Of Baroda: Lender cut MCLR by 15 bps across tenors.
Tata Motors: ICRA cut the company's long-term debt rating to AA- from AA.
Muthoot Finance: Board to mull raising funds on August 12.
Tata Power: Subsidiary commissioned 70kW solar rooftop installation at India International Centre, New Delhi.
DQ Entertainment (International): Company's latest kids animated TV Series 'The Psammy Show' made its way into the Chinese market.
HCL Technologies: Company and Oracle Health Sciences collaborate to accelerate mHealth in clinical trials.
HSIL: National Company Law Tribunal approved the scheme of arrangement between the company, Somany Home Innovation and Brilloca.
IL&FS Transportation Networks: Company defaulted in payment of interest due on non-convertible debentures.
Talbros Engineering: Company appointed Sanjay Sharma as an executive director. CARE assigned a rating of A- rating: Negative for long term bank facilities and A-: Negative/ A2+ for short term bank facilities.
IOL Chemicals & Pharmaceuticals: Company made the pre-payment of a term loan of Rs 14 crore due to banks in addition to the regular repayment schedule.
SRF: Company approved the project for setting up of an integrated facility for the development of PTFE at an estimated cost of Rs 424 crore.
Music Broadcast: Company becomes the first Indian radio network to acquire commercial rights to sell ad space at the Lucknow metro stations and play curated content for three years.
Wipro: Company's strategic design subsidiary Designit expanded operations with New Studio in Sydney, Australia.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 2,016.73 crore, but Domestic Institutional Investors (DIIs) bought Rs 1,871.27 crore worth of shares in the Indian equity market on August 5, as per provisional data available on the NSE.
Fund Flow Picture
No stock under F&O ban period on NSE
For August 6, not a single stock is under the F&O ban period.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.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.