Nagaraj Shetti of HDFC Securities said a sustainable move only above 11,120-11,150 levels is likely to gather strength in the upside momentum.
Weighed by banking & financials, the bourses on August 20 snapped a three-day winning streak and closed lower.
Sensex fell 74.48 points to end at 37,328.01 while Nifty slipped 36.90 points to end at 11,017 amid volatility and formed bearish candle on daily charts.
"The short-term trend of Nifty is rangebound with weak bias. A further lack of strength in the downside momentum near the key overhead resistance could raise curtain for bulls to make a comeback," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
He said immediate support of 10,980-10,960 levels could be crucial to maintain positive bias. A sustainable move only above 11,120-11,150 levels is likely to gather strength in the upside momentum, he added.
The broader markets fell more than benchmarks as the Nifty Midcap index was down 0.85 percent and Smallcap index declined 0.62 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,017.00 on August 20. According to the pivot charts, key support level is placed at 10,976.1, followed by 10,935.2. If the index starts moving upward, key resistance levels to watch out for are 11,067.1 and 11,117.2.
Nifty Bank closed at 27,982.45, down 203.65 points on August 20. The important pivot level, which will act as crucial support for the index, is placed at 27,809.6, followed by 27,636.8. On the upside, key resistance levels are placed at 28,185.3 and 28,388.2.
Call options data
Maximum Call Open Interest (OI) of 26.09 lakh contracts was seen at the 11,000 strike price. It will act as a crucial resistance level in the August series.
This is followed by 11,500 strike price, which now holds 24.09 lakh contracts in open interest, and 11,200, which has accumulated 20.48 lakh contracts in open interest.
Significant Call writing was seen at the 11,100 strike price, which added 2.09 lakh contracts, followed by 11,000 strike price, which added 1.27 lakh contracts.
Call Unwinding was seen at 11,500 strike price, which shed 3.01 lakh contracts, followed by 11,700 strike, which shed 1.65 lakh contracts.
Put options data
Maximum Put Open Interest of 38.13 lakh contracts was seen at 11,000 strike price, which will act as crucial support in August series.
This is followed by 10,800 strike price, which now holds 22.67 lakh contracts in Open Interest, and 10,500 strike price, which has now accumulated 20.28 lakh contracts in open interest.
Put writing was seen at the 10,800 strike price, which added 1.53 lakh contracts, followed by 10,600 strike, which added 1.11 lakh contracts and 10,500 strike, which added 1.06 lakh contracts.
Put Unwinding was seen at the 10,700 strike price, which shed 5.62 lakh contracts, followed by 10,900 strike that shed 0.7 lakh contracts and 11,200 strike price which shed 0.54 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.
32 stocks saw a long buildup
18 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
65 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.
48 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Kajaria Ceramics: Ashok Kajaria, Chairman & Managing Director and Sanjeev Agarwal, Chief Financial Officer of the company would be attending 'IIFL's Investors Conference' at New Delhi on August 22.
Sandhar Technologies: Company's officials will meet JM Financial Services on August 21.
Housing and Urban Development Corporation: 49th Annual General Meeting (AGM) is scheduled to be held on September 25.
Asian Oilfield Services: Officials of the company will be meeting investors and analysts (participants) on August 21.
Punjab National Bank: Lender's officials will attend Motilal Oswal Investor Conference 2019 on August 21.
Music Broadcast: Annual General Meeting of the company will be held on September 18.
Greenply Industries: The 29th Annual General Meeting of the members will be held on September 30.
ZF Steering Gear: 39th Annual General Meeting of the company to be held on September 20.
Chalet Hotels: Company's officials will attend Motilal Oswal's 15th Annual Global Investor Conference on August 21.
Advani Hotels & Resorts: 32nd Annual General Meeting to be held on September 17.
Stocks in the news
Results on August 21: GTN Industries, Procter & Gamble Hygiene, Thakral Services, Valecha Engineering
Sun Pharma Advanced Research: US company Abraxis Biosciences LLC filed plea against the company, alleging that company's filing of New Drug Application (NDA) for Taclantis injection is an act of infringement of the Orange Book listed patents for Abraxane. Company believes that the lawsuit is without merit and will vigorously defend against these allegations.
SpiceJet, InterGlobe Aviation in focus: Government sources say Civil Aviation Ministry extends validity of allocated slots till December from September earlier - CNBC-TV18.
NMDC: Karnataka government withdraws approval to extend mining lease for Donimalai and company filed revision application against Karnataka government w.r.t. Donimalai order.
SpiceJet: Company will shift its entire operations at Mumbai to Terminal 2 of Chhatrapati Shivaji Maharaj International Airport from October 1 and single terminal operations will lead to better synergies and cut down costs substantially for the airline.
Alembic Pharmaceuticals: Company's Bioequivalence facility in Vadodara inspected by US Food & Drug Administration (USFDA) with no 483s observations.
Dr Reddy's Labs: US FDA completed audit of Duvvada formulations manufacturing plant with 8 observations.
HDIL: Company has been admitted under provisions of IBC and company is under process to file appeal to NCLAT against order passed by NCLT.
United Spirits: Diageo PLC acquired further 33 lakh shares in company at Rs 591.95 per share.
Deepak Nitrite: ICRA upgraded company's long-term rating from A+ to AA-; outlook stable.
IOL Chemicals & Pharmaceuticals: Company has made the pre-payment of term loan of Rs 9.52 crore due to banks in addition to scheduled repayment. It has made the pre-payment of term loan of aggregate of Rs 107.70 crore till date to reduce the term debt, which remains at Rs 123.45 crore as on date.
Freshtrop Fruits: The board, at its meeting scheduled to be held on August 23 to consider the proposal of buyback of equity shares of the company.
NK Industries: Board meeting of the company is scheduled on August 28 to consider voluntary delisting of shares.
Zensar Technologies: Company partnered with Aptos, a retail technology solutions provider, to deliver next-gen retail innovation.
Supershakti Metaliks: Board meeting is scheduled to be held on August 23 to consider the proposal for issue of bonus shares.
TVS Srichakra: Company announced the nationwide launch of its brand TVS Eurogrip.
Riga Sugar Company: Satya Ranjan Mallick has resigned from the post of Chief Financial Officer of the company.
Ceenik Exports: Company appointed Mayank Agrawal as the Company Secretary.
Nova Iron & Steel: Company delayed submission of June quarter financial results due to resignation of statutory auditors on August 14.
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FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth net Rs 373.23 crore and Domestic Institutional Investors (DIIs) purchased net Rs 296.41 crore worth of shares in the Indian equity market on August 20, as per provisional data available on the NSE.
Fund Flow Picture
2 stocks under F&O ban period on NSE
On August 21, DHFL and IDBI Bank are under F&O ban.Securities under the ban period in the F&O segment include companies in whose security has crossed 95 percent of the market-wide position limit.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.