Nagaraj Shetti of HDFC securities said the overall pattern as per daily and intraday timeframe are signalling a possibility of some more weakness for the next session.
Benchmark indices snapped the six-day winning streak to close lower on December 4 as traders maintained a cautious stance ahead of the Monetary Policy Committee meeting scheduled on December 5.
A spate of events such as a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) on December 6 and results of state elections in the country next week could keep investors wary, experts said. If the Nifty 50 decisively breaks 10,747 on the downside then there could be more selling pressure, they added.
"The short-term trend of Nifty continues to be choppy. The overall pattern as per daily and intraday timeframe are signalling a possibility of some more weakness for the next session," Nagaraj Shetti, Technical Research Analyst at HDFC securities told Moneycontrol.
The lower levels of 10,850-10,830 is going to be a crucial support for the short-term, he said.
After opening flat the Nifty 50 traded lower in a range of 57 points and closed 14.30 points lower at 10,869.50, forming small bearish candle resembling a 'Doji' kind of pattern on the daily charts.
A 'Doji' is formed when the index opens and then closes approximately around the same level but stays volatile through the day -- indicated by its long shadow on either side. It appears like a cross or a plus sign.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in said as the market is likely to await election result outcome there may not be a compelling low-risk trading opportunity even after monetary policy; hence, traders are advised to remain extremely stock specific with a neutral bias.
India VIX fell by 1.81 percent to 17.89 levels.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,869.50 on December 4. According to Pivot charts, the key support level is placed at 10,838.2, followed by 10,806.9. If the index starts moving upward, key resistance levels to watch out are 10,895.9 and then 10,922.3.
The Nifty Bank index closed at 26,693.80, down 163.75 points. The important Pivot level, which will act as crucial support for the index, is placed at 26,611.14, followed by 26,528.47. On the upside, key resistance levels are placed at 26,810.14, followed by 26,926.47.
Call Options Data
Maximum Call open interest (OI) of 27.60 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the December series.
This was followed by the 10,900 strike price, which now holds 18.42 lakh contracts in open interest, and 11,100, which has accumulated 15.88 lakh contracts in open interest.
Meaningful Call writing was seen at 10,900, which added 0.88 lakh contracts, followed by 11,200 strike which added 0.73 lakh contracts, and 11,400 strike which added 0.70 lakh contracts.
Maximum Call unwinding was seen at the strike price of 11,100, which shed 0.46 lakh contracts, followed by 10,500 which shed 0.19 lakh contracts.
Put Options data
Maximum Put open interest of 36.25 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the December series.
This was followed by the 11,000 strike price, which now holds 31.71 lakh contracts in open interest, and the 10,700 strike price, which has now accumulated 26.61 lakh contracts in open interest.
Put writing was seen at the strike price of 10,800, which added 2.86 lakh contracts, followed by 10,600 strike which added 2.39 lakh contracts and 10,500 strike which added 1.88 lakh contracts.
There was hardly any Put unwinding seen.
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 55.89 crore and Domestic Institutional Investors sold Rs 521.38 crore worth of shares in the Indian equity market on Tuesday, 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.
46 stocks saw a long buildup
32 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
73 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.
50 stocks saw long unwinding
AVG Logistics: Sixth Sense India Opportunities II bought 1,71,600 shares of the company at Rs 75.19 per share on the NSE.
GSS Infotech: Ritesh Spinning Mills purchased 1 lakh shares of the company at Rs 129.48 per share on the NSE.
Rolta India: Anupam Narain Gupta bought 10,30,000 shares of the company at Rs 13.54 per share on the NSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
The Investment Trust Of India: Board meeting is scheduled on December 7 to consider revised scheme of arrangement.
Phillips Carbon Black: Company intends to attend the investors' conference on December 5, 2018 at Mumbai organised by B&K Securities.
Tata Steel: Company's officials will be meeting with fixed income investors in Singapore on December 5, and Abu Dhabi Investment Authority on December 11 in Mumbai.
Veto Switchgears and Cables: Board meeting is scheduled on December 15 to consider the treatment of preferential warrants convertible into equivalent number of equity shares as issued on May 31, 2017.
Max Ventures and Industries: Company's officials will be meeting analysts/investors on December 6-7.
Abirami Financial Services: Board meeting is scheduled on December 7 to consider the proposal of voluntary delisting of equity shares and to appoint a merchant banker.
Mahanagar Gas: Company's officials will be meeting Burgundy Asset Management on December 5.
Astral Poly Technik: Management of the company will participate in the B&K Securities Conference by B&K Securities on December 5 at Mumbai.
Stocks in news
Lupin: Company launched generic Silodosin capsules 4mg and 8mg in the US. It is indicated for the treatment of the signs and symptoms of benign prostatic hyperplasia (BPH).
Kesoram Industries: Company decided to spin off its tyre business by demerging this undertaking into a resulting company, Birla Tyres Limited (BTL). BTL will also become a listed company with its shareholding pattern mirroring Kesoram.
Oil India: Company successfully commissioned the Cyclic Steam Stimulation (CSS) technology in the well BGW - 8 in Baghewala PML of Rajasthan for extraction of heavy crude oil for the first time in India.
Trigyn Technologies: Wholly owned subsidiary Trigyn Technologies Inc declared dividend to its holding company.
TCS: Company launches intelligent power plant solution to digitally transform utilities' operations.
Kridhan Infra: Associate company Vijay Nirman Company wins order worth Rs 105 crore.
S Chand and Company: The timeline for completing the first tranche investment of Rs 58.50 crore to acquire 51 percent partnership interest in Chetana Publications (India) LLP has been extended to December 31, 2018.
Indiabulls Ventures: Allotment committee of the board of directors allotted an aggregate of 2,69,09,089 compulsorily convertible debentures of face value of Rs 550 each, for a value aggregating to approximately Rs 1,480 crore, to certain foreign investors.
Hinduja Global Solutions: Company will be creating up to 150 brand new permanent jobs and investing into its site in Selkirk, Scotland over the course of 2019.
The New India Assurance Company: Atul Sahai, General Manager of the Oriental Insurance Company Limited, is appointed as the Chairman cum Managing Director on the board of the company.
Rallis India: CRISIL has reaffirmed its AA+/ Stable long term rating and A1+ short term rating for the company's bank loan facilities aggregating to Rs 360 crore.
VST Tillers Tractors: KU Subbaiah resigned from the post of Chief Executive Officer due to his personal reason.
Magna Electro Castings: CARE has assigned credit ratings for various bank facilities of the company.
Mandhana Industries: The NCLT approved a resolution plan submitted by US-based Formation Textiles LLC for the company. The US firm will implement the Resolution Plan in its own capacity as a body corporate.
India Green Reality: Company to issue equity share on preferential basis to promoter and/or non-promoters.
SKF India: Board approved December 21 as the record date to determine the eligibility of shareholders under the proposed buyback of the equity shares of the company.
Rattanlndia Infrastructure: Arbutus Consultancy LLP, a part of the promoter group of the company, to sell up to 6,49,11,325 equity shares (representing 4.71 percent of the total paid up equity) through offer for sale on December 6-7. Floor price is fixed at Rs 3.40 per share.
No stock 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 December 5, 2018, not a single stock is present in this list.