Nagaraj Shetti of HDFC Securities said the short term trend of Nifty is in the process of showing upside bounce from the lows.
The market consolidated and closed on a mixed note on July 9 after a steep fall in the previous two straight sessions. Traders now look for cues from June quarter earnings that began this week.
The BSE Sensex gained 10.25 points to close at 38,730.82 while Nifty 50 fell 2.70 points to 11,555.90 forming a small bullish candle resembling a Hammer kind of pattern on daily charts.
The formation of this kind of pattern suggests some positive reversal if current levels are held, experts said.
"A small positive candle was formed with long lower shadow. Technically, this pattern indicates a high wave type candlestick pattern. Normally, a formation of such high wave type candle patterns after a reasonable weakness could be viewed for a minor upside bounce," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He said the short term trend of Nifty is in the process of showing upside bounce from the lows. "Important supports to be watched around 11,450-425 levels and crucial overhead resistance is placed around 11,625 levels.
The Sensex recovered 295 points while Nifty 50 added 95 points from day's low to end flat.
The sectoral trend was mixed with Nifty Pharma index rising 2.7 percent and Realty 2.8 percent while FMCG and IT declining nearly a percent each. The Nifty Midcap and Smallcap indices outperformed frontliners, rising 0.4 percent each.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,555.90 on July 9. According to Pivot charts, the key support level is placed at 11,483.77, followed by 11,411.63. If the index starts moving upward, the key resistance levels to watch out are 11,605.27 and 11,654.63.
Nifty Bank closed at 30,569.15, down 34.70 points on July 9. The important Pivot level, which will act as crucial support for the index, is placed at 30,376.57, followed by 30,183.93. On the upside, key resistance levels are placed at 30,731.97, followed by 30,894.73.
Call options data
Maximum Call open interest (OI) of 31.22 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level for the July series.
This is followed by 11,900 strike price, which now holds 15.94 lakh contracts in open interest, and 11,800, which has accumulated 15.54 lakh contracts in open interest.
Significant Call writing was seen at 11,600 strike price, which added 4.13 lakh contracts, followed by a 11,500 strike price which added 2.99 lakh contracts and 11,900 strike that added 2.92 lakh contracts.
Call unwinding was seen at 12,300 strike, which shed 0.16 lakh contracts, followed by 11,000 strike that shed 0.11 lakh contracts.
Put options data
Maximum Put open interest of 17.52 lakh contracts was seen at 11,300 strike price. It will act as a crucial support level for the July series.
This was followed by 11,500 strike price, which now holds 17.21 lakh contracts in open interest and 11,000 strike price, which has now accumulated 14.95 lakh contracts in open interest.
Put writing was seen at 11,200 strike price, which added 2.62 lakh contracts, followed by 11,300 strike price that added 1.87 lakh contracts and 11,500 strike, which added 1.71 lakh contracts.
Put unwinding was seen at the 11,800 strike, which shed 1.86 lakh contracts, followed by 11,900 strike that shed 1.8 lakh contracts and 11,700 strike which shed 1.73 lakh contracts.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on it.
44 stocks saw a long buildup
55 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
43 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.
21 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Liberty Shoes: Company will announce its financial results for the 1st quarter ended June 2019 on July 24.
Gujarat State Fertilizers & Chemicals: Company will announce its financial results for the 1st quarter ended June 2019 on August 6.
Sterlite Technologies: Company will announce its financial results for the 1st quarter ended June 2019 on July 18.
Himachal Futuristic Communications: The company will host an audio earnings conference call on July 11 to discuss un-audited financial results for June quarter.
Inditrade Capital: Company will announce its financial results for the 1st quarter ended June 2019 on July 25.
Quess Corp: Meeting of the board of directors of the company is scheduled on July 12 to consider investment up to Rs 51 crore in the company by an investor, through an issue of equity shares on preferential allotment basis.
Genus Power Infrastructures: Officials of the company will be meeting investors & analyst in Mumbai on July 10.
Pioneer Distilleries: Company will announce its financial results for the quarter ended June 2019 on July 18.
Asian Hotels (East): 12th Annual General Meeting of the company to be held on August 5.
AU Small Finance Bank: Company will announce its financial results for the quarter ended June 2019 on July 25.
Avanti Feeds: Company will announce its financial results for the quarter ended June 2019 on July 20.
CCL Products: Conference call on un-audited financial results for the first quarter ended June 2019 is scheduled to be held on July 11.
Godrej Agrovet: 28th Annual General Meeting is scheduled to be held on August 2.
Stocks in news
Results on July 10: GTPL Hathway, Himachal Futuristic Communications
TCS Q1: Profit grows 0.1 percent to Rs 8,131 crore versus Rs 8,126 crore, revenue increases 0.4 percent to Rs 38,172 crore versus Rs 38,010 crore; dollar revenue rises 1.6 percent to $5,485 million versus $5,397 million QoQ.
Manpasand Beverages: Mehra Goel & Co resigned as statutory auditors due to probe into the company by GST authorities.
KRBL: ICRA revised rating on the company's banking limits on long term scale to AA- from AA (Stable).
Anik Industries: CARE revised rating on company's long term bank facilities to C (issuer not cooperating) from B+/Stable (issuer not cooperating), on account of deterioration in its liquidity due to cash loss reported in FY19 and almost full utilisation of working capital limits.
Garware Synthetics: Ramesh Chandorkar resigned as director of the company.
Nava Bharat Ventures: CRISIL has reaffirmed credit ratings for bank loan facilities of the company at A with a stable outlook.
BHEL: An agreement has been signed between company and Container Corporation of India to form Joint Working Group to establish rail-based logistics terminal at Haridwar.
Autoline Industries: As per the revised Eligibility Certificate the Government of Maharashtra has approved additional IPS claim of Rs 44.61 crore and out of said approved amount, the company has received a number of Rs 14.50 crore on July 8, 2019, and with this amount the company has received total of Rs 35.12 crores in three tranches. The remaining amount is expected shortly.
NLC India: Pursuant to the confirmation received from TANGEDCO, 63 MW capacity out of the 100 MW Solar PV power plant at Therkkupatti and Subbiahpuram Village, Tamilnadu, out of 709 MW solar power projects awarded by TANGEDCO has been successfully commissioned.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 674.26 crore, but Domestic Institutional Investors (DIIs) bought Rs 710.91 crore worth of shares in the Indian equity market on July 9, as per provisional data available on the NSE.
Fund Flow Picture
Two stocks under F&O ban period on NSE
For July 10, DHFL and Reliance Capital 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.The Great Diwali Discount!
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