Mazhar Mohammad of Chartviewindia.in said In the near term, a close above 10,800 can be considered as initial sign of strength for bulls.
Benchmark indices started the week on a subdued note as benchmark indices slipped a percent ahead of January derivative contracts' expiry and Interim Budget, slated to be held later this week.
The 30-share BSE Sensex fell 368.84 points to 35,656.70 while the Nifty50 plunged 119.00 points to 10,661.50 and continued to form large bearish candle on the daily scale.
"Back to back strong negative closes are suggesting that at least short-term reversal is in place from Friday's high of 10,931 levels as Nifty50 was sold off on Monday when it opened with a mild positive tick," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
He said as balance of power is tilting in favour of bears it looks that Nifty can initially head towards 10,530 kind of levels on breach of 10,628 but ultimate downside target may remain close to 10,333–10,280 kind of levels.
In the next session if Nifty doesn't close below 10,628 levels, then traders should square off their short positions as any bounce from current levels may again lead to sideways move with targets placed around 10,800 kind of levels, according to Mazhar.
In the near term a close above 10,800 can be considered as initial sign of strength for bulls, he said, adding that till then, long positions should be avoided.
The sell-off in banking and financials, auto, FMCG and pharma stocks pulled the market sharply lower while the broader markets continued to underperform frontliners. The Nifty Midcap index was down 2.1 percent and Smallcap index declined 1.8 percent.
India VIX moved up by 6.83 percent at 18.90 levels. Sudden spike in VIX with lower Put Call Ratio indicates limited upside in the market as index has broken immediate support zones.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,661.50 on January 28. According to Pivot charts, the key support level is placed at 10593.5, followed by 10,525.5. If the index starts moving upward, key resistance levels to watch out are 10,767 and then 10,872.5.
The Nifty Bank index closed at 26,653.05, down 462.25 points on January 28. The important Pivot level, which will act as crucial support for the index, is placed at 26,449.27, followed by 26,245.44. On the upside, key resistance levels are placed at 26,995.57, followed by 27,338.03.
Call Options Data
Maximum Call open interest (OI) of 50.25 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.
This was followed by the 10,900 strike price, which now holds 48.18 lakh contracts in open interest, and 10,800, which has accumulated 35.50 lakh contracts in open interest.
Meaningful Call writing was seen at 10,700, which added 16.03 lakh contracts, followed by 10,800 strike which added 10.01 lakh contracts and 11,000 strike which added 5.92 lakh contracts.
Call unwinding was seen at 11,200 strike, which shed 5.84 lakh contracts.
Put Options data
Maximum Put open interest of 28.35 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.
This was followed by the 10,700 strike price, which now holds 26.19 lakh contracts in open interest, and the 10,600 strike price, which has now accumulated 25.35 lakh contracts in open interest.
Put writing was seen at the strike price of 10,600, which added 3.73 lakh contracts, followed by 10,400 strike which added 3.63 lakh contracts and 10,500 strike which added 1.44 lakh contracts.
Put unwinding was seen at the strike price of 10,800, which shed 10.05 lakh contracts, followed by 10,900, which shed 6.62 lakh contracts and 10,700, which shed 3.88 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth Rs 223.44 crore and Domestic Institutional Investors purchased Rs 92.32 crore worth of shares in the Indian equity market on January 28, 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.
15 stocks saw a long buildup
20 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
72 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.
93 stocks saw long unwinding
Bulk Deals on January 28
Sadbhav Engineering: Shantaben Vishnubhai Patel bought 9,52,000 shares of the company at Rs 190 per share on the NSE.
Sentinel Tea and Exports: Castor Investments Limited purchased 96,269 shares of the company at Rs 105.81 per shares on the NSE.
Zee Entertainment Enterprises: DVI Fund Mauritius bought 89,69,248 shares of the company at Rs 343.05 per share on the NSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Strides Pharma Science: Company will host earnings call with analysts and investors on January 29 to discuss the un-audited financial results for the quarter ended December 2018.
India Energy Exchange: Board meeting is scheduled to be held on February 8 to consider the unaudited financial results for the quarter and nine months ended December 2018.
Shipping Corporation of India: Board meeting is scheduled on February 7 to consider the Unaudited financial results for quarter ended on December 2018.
Mangalam Cement: Board meeting is scheduled on February 7 to consider the unaudited financial results of the company for the quarter and nine months ended December 2018.
Gallantt Ispat: Board meeting is scheduled on February 5 to consider and approve modification of proposed expansion of the plants of the company.
BGR Energy Systems: Board meeting is scheduled on February 14 to consider the financial results for the quarter ended December 2018.
Ucal Fuel Systems: Board meeting is scheduled on February 9 to consider the unaudited financial results of the company for the quarter ended December 2018.
Ashok Leyland: Company to announce third quarter results on February 14.
IRB Infrastructure Developers: Company to announce third quarter results on February 4.
Brigade Enterprises: Company to announce third quarter results on February 5.
MRF: Company to announce third quarter results on February 7.
Ircon International: Company to announce third quarter results on February 7.
Thyrocare Technologies: Company to announce third quarter results on February 9.
IDFC: Company to announce third quarter results on February 9.
Mahindra & Mahindra: Company's officials will be meeting several funds/investors/analysts during Q3FY19 earnings con-call on February 8, in Antique Investor Conference on February 11, Edelweiss Investor Conference on February 13 and IIFL Investor Conference on February 15.
Century Plyboards: Company to announce third quarter results on February 5.
Reliance Infrastructure: Company to announce third quarter results on February 5.
Redington (India): Board meeting is scheduled on February 12 to consider the unaudited financial results for the quarter and 9 (nine) months ended December 2018.
Sagar Cements: Company will be hosting conference call for analysts and investors on January 31 to discuss the company's Q3 FY19 financial performance.
Sun Pharma: Company to announce third quarter results on February 12.
Shree Pushkar Chemicals & Fertilisers: Board meeting is scheduled on February 7 to consider the unaudited financial results for the quarter ended December 2018.
Muthoot Finance: Board meeting is scheduled on February 6 to consider the unaudited standalone financial results for the quarter ended December 2018.
VIP Clothing: Board meeting is scheduled on February 7 to consider the un-audited financial results for the quarter and nine months ended on December 2018.
Dish TV: Investor conference call with CMD Jawahar Goel to be held on January 29 to answer any queries regarding the developments related to the recent stock price movement.
Matrimony.Com: Board meeting is scheduled on February 12 to consider the Un-audited consolidated financial results for the quarter ended December 2018.
Stocks in news
Results on January 29: Axis Bank, HCL Technologies, HDFC, Bajaj Finance, Bank of Baroda, Oriental Bank of Commerce, Johnson Controls, Eris Lifesciences, Himadri Speciality Chemical, Indiabulls Integrated Services, Orchid Pharma, Mahanagar Gas, Bharat Financial Inclusion, SORIL Infra Resources, Kingfa Science & Technology (India), Intense Technologies, Lloyds Steels Industries, Teamlease Services, Hester Biosciences, Tata Steel BSL, Crompton Greaves Consumer Electricals, Pokarna, Welspun Enterprises, DCM Shriram, The Ramco Cements, Subex, Tata Coffee, Cera Sanitaryware, Bliss GVS Pharma, WABCO India, Revathi Equipment, Times Guaranty, KEC International, Bajaj Finserv, Electrosteel Castings, KEI Industries, Godrej Consumer Products, Fertilizers and Chemicals Travancore, Eimco Elecon (India), Kansai Nerolac Paints, Ramco Industries, Apar Industries, Info Edge (India), Kalyani Forge, Apcotex Industries, Strides Pharma Science, Granules India
Bank of India Q3: Net loss at Rs 4,738 crore against loss of Rs 2,341 crore; NII rises 33.2 percent to Rs 3,332 crore versus Rs 2,501 crore YoY; gross NPA falls to 16.3 percent against 16.36 percent and net NPA down at 5.87 percent against 7.65 percent QoQ.
Tata Power Q3: Consolidated profit falls 78 percent to Rs 126.7 crore versus Rs 591 crore; revenue rises to 21.2 percent to Rs 7,706 crore versus Rs 6,360.2 crore YoY.
Praj Industries Q3: Profit jumps to Rs 22.4 crore versus Rs 7.5 crore; revenue rises 33 percent to Rs 330.3 crore versus Rs 248.3 crore YoY.
Ceat Q3: Consolidated profit dips to Rs 52.77 crore versus Rs 82.64 crore; revenue falls to Rs 1,714 crore versus Rs 1,574 crore YoY.
Persistent Systems Q3: Profit rises to Rs 91.7 crore versus Rs 88.14 crore; revenue increases to Rs 864.25 versus Rs 835.55 crore QoQ.
Persistent Systems: Board approved buy-back of Rs 225 crore.
Shoppers Stop Q3: Profit jumps to Rs 44.32 crore versus Rs 16.34 crore; revenue rises to Rs 999.15 crore against Rs 963.2 crore YoY.
IL&FS Transportation Networks: Interest due and payable on January 28 on the NCDs was not paid to the debenture holders due to insufficient funds.
Mindtree and Cafe Coffee Day: The Income Tax department attached Siddhartha's and Coffee Day's shares, amounting to 4.5 percent of Mindtree, citing potential claims on an ongoing assessment - CNBC-TV18.
Savita Oil Technologies Q3: Profit jumps to Rs Rs 44.47 crore versus Rs 18.22 crore; revenue rises to Rs 602 crore versus Rs 573 crore QoQ.
Music Broadcast: Profit rises to Rs 16.4 crore versus Rs 11.88 crore; revenue increases to Rs 87 crore versus Rs 76.18 crore YoY.
Siyaram Silk Mills Q3: Profit falls to Rs 20 crore versus Rs 22.43 crore; revenue rises to Rs 446.3 crore versus Rs 393.60 crore YoY.
Network 18 Media and Investments: ICRA assigned AAA/Stable rating to the company's long-term borrowing programme (bank loan / non-convertible debenture programme) of Rs 1,000 crore (enhanced from Rs 500 crore).
Ramco Systems: Loss at Rs 2.9 crore versus profit at Rs 4.08 crore; revenue rises to Rs 143.58 crore versus Rs 131.47 crore QoQ.
TV18 Broadcast: ICRA assigned the credit rating of AAA-Stable)/A1+ to the company's long-term / short-term, fund-based / non-fund based facilities limits of Rs 750 crore (enhanced from Rs 354 crore).
Newgen Software Technologies: Company has executed an agreement to purchase office premises in Noida, Uttar Pradesh, total admeasuring 4,067 square meters at Rs 49 crore.
Hubtown: Board decided to divest its entire shareholding in one of its subsidiary Heet Builders Private Limited (Heet), comprising of 4,720 equity shares of the face value of Rs 100 per share to purchasers.
Sharon Bio-Medicine: API plant in Taloja, Maharshtra is directed for closure of operations under water and air (Prevention & Control of Pollution) Acts.
Balaji Amines Q3: Profit falls to Rs 26.3 crore versus Rs 28.08 crore; revenue rises to Rs 239.7 crore versus Rs 218.83 crore YoY.
Shalby Q3: Profit rises to Rs 12.89 crore versus Rs 10.48 crore; revenue jumps to Rs 113 crore versus Rs 96.66 crore YoY.
Punjab Alkalies & Chemicals Q3: Profit at Rs 3.36 crore versus loss Rs 1.12 crore; revenue rises to Rs 97.22 crore versus Rs 88.2 crore YoY.
Intellect Design Arena Q3: Consolidated profit drops to Rs 13.4 crore versus Rs 31.5 crore; revenue falls to Rs 374.7 crore versus Rs 380.4 crore QoQ.
Vaibhav Global Q3: Profit jumps to Rs 52.51 crore versus Rs 45.53 crore; revenue rises to Rs 510.6 crore versus Rs 461.6 crore YoY.
Nucleus Software Exports Q3: Profit increases to Rs 20.73 crore versus Rs 19.14 crore; revenue rises to Rs 122.93 crore versus Rs 121.49 crore QoQ.
3 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For January 29, Jain Irrigation Systems, Adani Enterprises and Adani Power are present in this list.Disclaimer: Reliance Industries Ltd is the sole beneficiary of Independent Media Trust that controls Network18 Media & Investments Ltd and TV18 Broadcast Ltd.