If the index breaks 200-DEMA, then there could be more selling pressure, experts said.
The bearish sentiment continued on Dalal Street with the Sensex falling more than 400 points intraday on July 22.
Benchmark indices closed at a two-month low. Sensex was down 305.88 points at 38,031.13 while the Nifty50 fell 73.10 points to 11,346.20 but held 200-day exponential moving average (11,297) and formed bearish candle on daily scale.
If the index breaks 200-DEMA, then there could be more selling pressure, experts said.
"Though the index is trading closer to the next support zone of 11,300-11,350 levels, until it does not trade above 5 EMA placed around 11,490 levels, the trend will remain bearish. Support comes from Andrew pitchfork lower trend line that is placed near 11,340 levels and monthly pivot point (S2) that is at 11,361 marks," Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors, told Moneycontrol.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas, also said the index can consolidate near 11,400-11,300 before stretching further down.
"Overall, the index is expected to test 11,200, which is the equality with the first leg of the July decline. Traders can continue to ride their short positions & trail the stop loss on the way down," he added.
The broader markets also witnessed selling pressure with the Nifty Midcap index falling 0.57 percent and Smallcap index declining 1.57 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,346.20 on July 22. According to the pivot charts, the key support level is placed at 11,298.87, followed by 11,251.53. If the index starts moving upward, the key resistance levels to watch for out are 11,395.87 and 11,445.53.
The Nifty Bank closed at 29,284.95, down 485.40 points on July 22. The important pivot level, which will act as crucial support for the index, is placed at 29,107.6, followed by 28,930.3. On the upside, key resistance levels are placed at 29,548.7, followed by 29,812.5.
Call options data
Maximum Call open interest (OI) of 32.59 lakh contracts was seen at the 11,600 strike price. It will act as a crucial resistance level in the last week of the July series.
This is followed by 11,500 strike price, which now holds 31.43 lakh contracts in open interest, and 11,700, which has accumulated 29.89 lakh contracts in open interest.
Significant Call writing was seen at the 11,400 strike price, which added 22.10 lakh contracts, followed by an 11,300 strike price, which added 4.25 lakh contracts. This was followed by 11,500 strike, which added 1.22 lakh contracts.
Call unwinding was seen at 11,700 strike, which shed 4.51 lakh contracts, followed by 12,000 strike, which shed 4.32 lakh contracts and 11,800 strike, which shed 3.88 lakh contracts.
Put options data
Maximum Put open interest of 38.10 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for last week of the July series.
This is followed by an 11,200 strike price, which now holds 22.03 lakh contracts in open interest and a 11,000 strike price, which has now accumulated 19.64 lakh contracts in open interest.
Put writing was seen at the 11,300 strike price, which added 7.66 lakh contracts, followed by an 11,200 strike which added 4.13 lakh contracts and 10,900 strike, which added 1.05 lakh contracts.
Put unwinding was seen at the 11,400 strike price, which shed 7.13 lakh contracts, followed by an 11,500 strike that shed 4.76 lakh contracts and an 11,600 strike price which shed 4.58 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting delivery of the stock, which means investors are bullish on it.
54 stocks saw a long buildup
45 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
41 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.
22 stocks saw long unwinding
Analyst or Board Meetings/Briefings
ICRA: Company will announce its June quarter earnings on August 1.
Central Bank of India: Lender will announce its June quarter earnings on August 6.
Wockhardt: Company will announce its June quarter earnings on August 14.
Bharat Forge: Company will announce its June quarter earnings on August 13.
Zen Technologies: Company will announce its June quarter earnings on August 3.
Grasim Industries: Company will announce its June quarter earnings on August 14.
Bombay Dyeing: Company will announce its June quarter earnings on August 5.
India Grid Trust: Company will announce its June quarter earnings on July 29.
Dish TV: Company will announce its June quarter earnings on July 30.
IRB Invit Fund: Company will announce its June quarter earnings on July 29.
Amarjothi Spinning Mills: Company will announce its June quarter earnings on July 31.
Allahabad Bank: Lender will announce its June quarter earnings on July 31.
Motilal Oswal Financial Services: Company will hold earnings conference call with institutional investor(s)/analyst(s) on August 1.
Intellect Design Arena: Analysts call on the financial results for the quarter ended June 2019 will be held on July 24.
Stocks in news
Results on July 23: Larsen & Toubro, Hindustan Unilever, Zee Entertainment Enterprises, SBI Life Insurance Company, HDFC Life Insurance Company, Sundaram Clayton, Ponni Sugars (Erode), Jyothy Labs, Torrent Pharmaceuticals, Linde India, Asian Hotels (North), Control Print, GE Power India, Oriental Hotels, Praj Industries, Schaeffler India, TECIL Chemicals, Kajaria Ceramics, Shanthi Gears, NIIT Technologies, JK Paper, Rushil Decor, SKF India, M&M Financial Services, Poddar Pigments, Nucleus Software Exports, Everest Industries, Indian Overseas Bank, CRISIL, HT Media, DCM Shriram
Kotak Mahindra Bank Q1: Profit jumps 32.7 percent to Rs 1,360.2 crore versus Rs 1,024.9 crore, NII grows 22.8 percent to Rs 3,173 crore versus Rs 2,582.9 crore YoY; gross NPA inches up at 2.19 percent versus 2.14 percent, net NPA falls to 0.73 percent versus 0.75 percent QoQ.
TVS Motor Company Q1: Profit falls 2.9 percent to Rs 142.3 crore versus Rs 146.6 crore, revenue rises 7.2 percent to Rs 4,468.6 crore versus Rs 4,168.4 crore YoY.
United Spirits Q1: Profit jumps sharply to Rs 197 crore versus Rs 81 crore, revenue rises 10 percent to Rs 2,218 crore versus Rs 2,009 crore YoY.
Coromandel International Q1: Profit dips 30.8 percent to Rs 62.43 crore versus Rs 90.21 crore, revenue declines 15.7 percent to Rs 2,130.7 crore versus Rs 2,528.45 crore YoY.
Mastek Q1: Profit slips 11.7 percent to Rs 24.2 crore versus Rs 27.4 crore, revenue slips 7.3 percent to Rs 247.5 crore versus Rs 267.1 crore QoQ.
Kirloskar Ferrous Industries Q1: Profit jumps to Rs 18.39 crore versus Rs 10.46 crore, revenue falls to Rs 482 crore versus Rs 496.3 crore YoY.
Allsec Technologies Q1: Consolidated profit at Rs 11.92 crore against loss Rs 1.87 crore; revenue rises to Rs 67.38 crore versus Rs 66.34 crore QoQ.
Can Fin Homes Q1: Profit jumps to Rs 80.98 crore versus Rs 73.22 crore, total income from operations increased to Rs 484.14 crore versus Rs 402.63 crore YoY.
Aptech Q1: Profit falls to Rs 3.08 crore versus Rs 3.56 crore, revenue falls to Rs 51.56 crore versus Rs 51.74 crore YoY.
Just Dial Q1: Profit surges 48.8 percent to Rs 57.3 crore versus Rs 38.5 crore, revenue increases 13.6 percent to Rs 240.2 crore versus Rs 211.4 crore YoY.
Vadilal Industries: Rajesh Gandhi has resigned from the post of chairman of the company.
Bandhan Bank: Bank appointed Sanjeev Naryani as Head - Business.
Alphageo (India): Company received a contract of Rs 0.72 crore from Mineral Exploration Corporation Ltd for survey of minerals.
KEI Industries: ICRA reaffirmed the rating assigned to long term bank facilities as A/Stable.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 1,916.91 crore, but Domestic Institutional Investors (DIIs) bought Rs 1,829.9 crore worth of shares in the Indian equity market on July 22 per provisional data available on the NSE.
Fund Flow Picture
Four stocks under F&O ban period on NSE
For July 23, DHFL, Dish TV, IDBI Bank and 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.Out of F&O Ban: Reliance Capital.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.