"A close above 5-day EMA (10,742) will change the current bearish sentiment," said Shabbir Kayyumi of Narnolia Financial Advisors.
Benchmark indices started the week on a negative note with the Nifty falling for the seventh consecutive session on February 18. Consistent outflow of FII money along with geo-political tensions also dented market sentiment.
The 30-share BSE Sensex tumbled 310.51 points to end at 35,498.44 while the Nifty50 slipped 83.40 points to 10,641 and formed a bearish candle.
"The Nifty index breached lower end of the multi week Ending Diagonal pattern on closing basis. The hourly chart shows that the fall has been unfolding in a channelised manner," said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
During minor degree bounces, the index has been faltering near the upper channel line as well as near the key hourly moving averages. The same was witnessed today as well, he added.
Going ahead, 10,610-10,583 is the key support zone to watch out for, he said, adding expansion in the daily Bollinger Bands suggests that an accelerated selling can be witnessed once the support zone breaks on closing basis.
On the flip side, the hurdle zone now slides downward to 10,700-10,750, according to him.
Shabbir Kayyumi, Head - Technical & Derivative Research at Narnolia Financial Advisors said as Nifty has closed below 100 DMA (10,691), prices can trade lower towards previous swing bottom placed around 10,583 levels.
A close above 5-day EMA (10,742) will change the current bearish sentiment, he added.
The Nifty Midcap and Smallcap indices also fell in line with frontliners, losing nearly a percent each.
Nifty FMCG was the prominent loser among sectoral indices, down 1.2 percent followed by IT, Metal, Pharma, Bank and Auto.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 10,640.95 on February 18. According to Pivot charts, the key support level is placed at 10,592.97, followed by 10,544.93. If the index starts moving upward, key resistance levels to watch out are 10,724.47 and then 10,807.93.
The Nifty Bank index closed at 26,654.25, down 140 points on February 18. The important Pivot level, which will act as crucial support for the index, is placed at 26,571.3, followed by 26,488.4. On the upside, key resistance levels are placed at 26,783.5, followed by 26,912.8.
Call options data
Maximum Call open interest (OI) of 40.89 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the February series.
This was followed by the 10,800 strike price, which now holds 30.76 lakh contracts in open interest, and 10,900, which has accumulated 28.87 lakh contracts in open interest.
Meaningful Call writing was seen at the strike of 10,800 that added 6.15 lakh contracts, followed by 10,700 strike that added 5.97 lakh contracts and 10,900 strike that added 2.99 lakh contracts.
Call unwinding was seen at the strike price of 11,000 that shed 0.66 lakh contracts, followed by 11,100 strike that shed 0.12 lakh contracts.
Put Options data
Maximum Put open interest of 31.39 lakh contracts was seen at the 10,400 strike price. This will act as a crucial support level for the February series.
This was followed by the 10,700 strike price, which now holds 27 lakh contracts in open interest, and the 10,500 strike price, which has now accumulated 25.70 lakh contracts in open interest.
There was hardly any Put writing seen.
Put unwinding was seen at the strike price of 10,700 which shed 5.12 lakh contracts, followed by 10,300 strike which shed 3.28 lakh contracts and 10,600 strike which shed 2.54 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 1,239.79 crore while Domestic Institutional Investors bought Rs 2,336.74 crore worth of shares in the Indian equity market on February 18, as per provisional data available on the NSE.
Fund Flow Picture
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting delivery of the stock, which means that investors are bullish on it.
31 stocks saw a long buildup
27 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
88 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.
55 stocks saw long unwinding
Bulk Deals on February 18
Dev Info Technology: Academy for Computer Training Guj Private Limited bought 28,500 shares of the company at Rs 74.54 per share on the NSE.
Suumaya Lifestyle: Bimalkumar Rajkumar Bansal sold 3,44,000 shares of the company at Rs 31 per share on the NSE.
Tara Jewels: Punjab National Bank sold 2,00,000 shares of the company at 50 paise per share.
Viji Finance: Vijay Kothari sold 7,10,528 shares of the company at 83 paise per share.
(For more bulk deals, click here)
Analyst or Board Meet/BriefingsMerck: Board meeting will be held on February 27 to consider the audited financial results for the financial year ended December 2018 and to consider
recommendation of dividend, if any.
Indian Hotels Company: Company is organizing Capital Market Day on February 19 in Mumbai. The said event is expected to be attended by chief investment officers and senior portfolio managers of financial institutions.
Punjab & Sind Bank: Extraordinary general meeting to be held on March 15, 2019.
Blue Star: Company's officials will be attending Kotak Institutional Equities - Chasing Growth 2019 Conference on February 19.
Crompton Greaves Consumer Electricals: Company's officials will be meeting analysts/investors on February 21-22.
Hindalco Industries: Company's officials will be attending Kotak Securities Limited, Chasing Growth 2019 Investors Conference in Mumbai on February 19.
Automotive Axles: Analyst/investor conference call has been organized on February 19 to discuss on the financial performance for third quarter FY19.
VST Tillers Tractors: Conference calls for the analysts and investors are scheduled to be held on February 19.
Shoppers Stop: One-on-one meeting with Lida Murayama, Fund Manager of Mitsubishi UFJ Kokusai Asset Management Co, Ltd has been scheduled on February 19.
Emami: Senior management of the company will be participating in the UBS Consumer Reverse Roadshow 2019 in Mumbai to be held on February 20.
Satin Creditcare Network: Meeting of Working Committee of the Board of Director is scheduled for February 21 for the issuance of non-convertible debentures INR equivalent amount of upto 35,00,000 US dollars through private placement.
Aster DM Healthcare: Company will be participating in the Kotak Conference on February 21, at Mumbai.
Stocks in news
Results on February 19: Valecha Engineering, Asahi Industries, Linde India, Imec Services, Shailja Commercial Trade.
Power Grid Corporation: Board accorded investment approval for 'Northern Region System Strengthening - XL' at an estimated cost of Rs 572.98 crore with commissioning schedule of 22 months from the date of investment approval.
Suditi Industries: Company executed the license contract with PSG Merchandising, a French simplified limited liability company. Accordingly they have granted company the right to use Paris Saint-Germain''s intellectual property rights for commercial purposes.
Cyient: Company launched its connected equipment offering for OEMs and equipment owners and operators.
Gokaldas Exports: Company entered into a Memorandum of Understanding with Government of Karnataka for setting up apparel manufacturing units over a period of next five years in Ballary district involving an investment of approximate up to Rs 80 crore.
IL&FS Transportation Networks: Interest due and payable on February 18 on the NCD was not paid to the debenture holders due to insufficient funds.
Bodal Chemicals: Company has restarted remaining of dye intermediate and dyestuff operations.
Ambuja Cements December quarter: Consolidated profit jumps to Rs 1,378 crore versus Rs 478 crore on tax credit; revenue Rs 6729 crore versus Rs 6173 crore YoY. Board recommended a final dividend on equity shares at the rate of Rs 1.50 per share.
Grasim Industries: Company to acquire the chlor-alkali business of KPR Industries (India) by way of a slump sale, for a cash consideration of Rs 253 crore. KPR Industries would utilize Rs 253 crore towards a full and final settlement of the lenders' dues under a one-time settlement.
Tata Steel: Subsidiary T S Global Minerals Holding Pte Ltd concluded the divestment of its entire stake in Black Ginger to IMR Asia Holding Pte Ltd.
Huhtamaki PPL Q3: Profit dips to Rs 18 crore versus Rs 21 crore; revenue rises to Rs 613 crore versus Rs 562 crore YoY.
Huhtamaki PPL: Board approved recommendation of payment of dividend at Rs 3 per share of face value of Rs 2 each.
Cipla: Subsidiary Goldencross Pharma Private Limited has signed an agreement to acquire 11.71 percent stake in Wellthy Therapeutics Private Limited.
Cipla: Company received a share of the South African Government's National ARV tender for TEE (comprising tenofovir, emtricitabine and efavirenz) and TLD (a combination of tenofovir (TDF), lamivudine (3TC) and dolutegravir (DTG)).
McNally Bharat Engineering Company Q3: Loss at Rs 193.3 crore versus loss Rs 144 crore; revenue falls to Rs 271 crore versus Rs 304.7 crore YoY.
Jet Airways Clarification on media reports: Company would continue to work for its stake sale in Jet Privilege Private Limited at an appropriate time, as part of its turnaround plan.
63 Moons: Company filed damage suits of Rs 10,000 crore against P Chidambaram, KP Krishnan & Ramesh Abhishek, for taking mala fide actions against company by abusing their power
Hotel Leela: Rockfort Estate to buy 1 percent stake in company from Leela Lace via inter-se transfer. Rockfort Estate & Leela Lace are promoters of company.
Wipro: Company launched QuMiC to accelerate migration to Oracle Cloud.
Mangalam Cement: Company received in-principal approval for amalgamation of Mangalam Timber Products with company.
Dishman Carbogen: Founder Janmejay Vyas steps down as MD. Global MD Arpit Vyas takes over founder's duties.
Future Consumer: Company entered into agreement with Middle East firm, T Choithrams, for supermarket chain.
Eight 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 February 19, Adani Enterprises, CG Power, IDBI Bank, Jet Airways, Jain Irrigation Systems, PC Jeweller, Reliance Infrastructure and Reliance Power stocks are present in this list.
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