Shabbir Kayyumi of Narnolia Financial Advisors said Nifty trading below crucial support (10,602) will push prices towards 50 percent Fibonacci retracement levels placed around 10,561
The market fell for the eighth consecutive session on February 19, the longest losing streak since July 2013. The sentiment was dented by Pakistan Prime Minister Imran Khan's comments that the country will retaliate if India launches military strikes in the aftermath of the Pulwama terror attack.
It looked like a positive session after seven days of losses, but a late sell-off wiped out all gains and benchmark indices slipped into the red for the eighth day in a row.
The 30-share BSE Sensex was down 145.83 points at 35,352.61 while the Nifty 50 lost 36.60 points to 10,604.40, taking the total eight-day loss to 465 points. The index formed a bearish candle, resembling an Inverted Hammer kind of formation on the daily charts.
"Today, Nifty has breached 38.2 percent Fibonacci retracement levels (10,602) of the entire rise from 10,004 up to 11,118 signifies next Fibonacci levels possible in current fall," Shabbir Kayyumi, Head - Technical & Derivative Research at Narnolia Financial Advisors told Moneycontrol.
The index trading below crucial support (10,602) will push prices towards 50 percent Fibonacci retracement levels placed around 10,561, whereas a close above 10,681 will only add to bulls' strength, he said.
The broader markets outperformed fronliners with the Nifty Midcap index rising 0.43 percent and Smallcap index up 0.26 percent amid positive breadth.
Among major sectors, the Metal index gained the most with 1.4 percent upside while IT lost 2 percent. Other indices more or less were flat.
We have collated top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 10,604.35 on February 19. According to Pivot charts, the key support level is placed at 10,552.4, followed by 10,500.5. If the index starts moving upward, key resistance levels to watch out are 10,689.5 and then 10,774.7.
The Nifty Bank index closed at 26,684.85, up 30.60 points on February 19. The important Pivot level, which will act as crucial support for the index, is placed at 26,541.46, followed by 26,398.13. On the upside, key resistance levels are placed at 26,912.26, followed by 27,139.73.
Call options data
Maximum Call open interest (OI) of 41.45 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 30.73 lakh contracts in open interest, and 10,900, which has accumulated 28.70 lakh contracts in open interest.
Meaningful Call writing was seen at the strike of 10,700 that added 2.20 lakh contracts, followed by 10,600 strike that added 1.7 lakh contracts and 11,000 strike that added 0.56 lakh contracts.
Call unwinding was seen at the strike price of 11,100 that shed 0.26 lakh contracts, followed by 10,900 strike that shed 0.16 lakh contracts.
Put Options data
Maximum Put open interest of 31.11 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 24.74 lakh contracts in open interest, and the 10,500 strike price, which has now accumulated 23.23 lakh contracts in open interest.
Put writing was seen at the strike price of 10,300 which added 1.83 lakh contracts, followed by 10,600 strike that added 0.62 lakh contracts.
Put unwinding was seen at the strike price of 10,500 which shed 2.47 lakh contracts, followed by 10,700 strike which shed 2.25 lakh contracts and 10,800 strike which shed 1.63 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 813.76 crore while Domestic Institutional Investors bought Rs 1,163.85 crore worth of shares in the Indian equity market on February 19, 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.
53 stocks saw a long buildup
63 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
52 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.
31 stocks saw long unwinding
Bulk Deals on February 19
Engineers India: ICICI Prudential Mutual Fund bought 33,08,000 shares of the company at Rs 107.63 per share.
NALCO: ICICI Prudential Mutual Fund bought 94,45,000 shares of the company at Rs 50.09 per share.
Sarda Energy: Asia Minerals Limited sold 3,50,000 shares of the company at Rs 236.2 per share.
Spencer's Retail: Rainbow Investments Limited purchased 6,00,000 shares of the company at Rs 138.65 per share.
Punj Lloyd: IFCI sold 50,00,000 shares of the company at Rs 1.66 per share.
Punj Lloyd: IFCI sold 1,02,72,641 shares of the company at Rs 1.45 per share.
Enkei Wheels (India): Neerav Apurva Parekh bought 1,25,000 shares of the company at Rs 416 per share.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Just Dial: Representative of the company will attend investors meeting viz. Chasing Growth 2019, Kotak Institutional Equities' Annual Global Investor Conference on February 20 at Mumbai.
IIFL Holdings: Company's officials will be meeting analysts/investors on February 20 and 22.
Mahindra Logistics: One-on-one conference call is scheduled to be held with Stewart Investors (First State Investments), Investor on February 20.
Quick Heal Technologies: Company will be attending a group meeting of Investors and Analysts on February 20 in Pune.
Jindal Stainless: Company's officials will be meeting certain funds/investors on February 20.
Vyapar Industries: Board meeting to be held on February 22 to consider the proposal for buyback of equity shares of the company.
Shreyas Shipping & Logistics: Company's officials will be meeting Goldman Sachs on February 20.
Aurionpro Solutions: Officials of the company will be meeting investors and analysts (participants) on February 21.
Cummins India: Company's officials will be meeting analysts/investors on February 20, 21 and 28, 2019.
Rallis India: Investor / Analyst meet is scheduled to be held on February 21 & 22, 2019.
Stocks in news
Results on February 20: Mahindra CIE Automotive, Mayur Leather Products, Metalyst Forgings, Rollatainers, Sang Froid Labs (India)
Essel Propack: Company further received Rs 40 crore towards repayment of outstanding dues of Inter corporate deposit. It has already received Rs 25.30 crore in last month. The balance amount is expected to be received by March 2019.
Duke Offshore: The company received a prestigious contract from Daewoo - Tata projects Limited JV to provide one initial high speed vessel to support construction for the Mumbei Trans Harbour Link project.
Genus Power Infrastructures: India Ratings and Research affirmed the company's long-term issuer rating at A+ with stable outlook.
The Investment Trust of India: Company approved revised Scheme of Arrangement between United Petro Finance Limited (demerged company) and Fortune Credit Capital Limited (resulting company).
Bajaj Healthcare: Board approved issue of bonus shares in the ratio of one equity share for every one existing equity share held by the members.
Valecha Engineering Q3: Loss at Rs 16 crore versus loss Rs 13.2 crore; revenue rises to Rs 56.5 crore versus Rs 43.22 crore YoY.
Vedanta: The company is not in the process of submitting any revised bid for Essar Steel under the IBC process.
The Byke Hospitality: CARE assigned BBB+ rating with negative outlook for company's long term bank facilities.
Majesco: American Public Life Insurance Company selects Majesco L&A and Group Core Suite.
Yes Bank clarified on RBI's Risk Assessment Report for FY18: The bank said the release on RBI Report made with an intention to be fully compliant with SEBI regulations.
Maharashtra Seamless: Company paid Rs 477 crore for acquisition of United Seamless Tabulaar.
JK Tyre: Sanjeev Aggarwal appointed as CFO. Ashok K Kinra ceased to be CFO but will continue with the company as a financial advisor.
Vedanta: Company will proceed with next steps of filing a writ petition before Madras HC to reopen company's Tamil Nadu unit.
Jaypee Infratech: Promoters offer to withdraw company from insolvency U/Sec 12A of IBC. Jaiprakash Associates offers Rs 1,500 crore to creditors versus Rs 8,125 crore owed as principal amount, offers Rs 4,858 crore as debt asset swap, offers Rs 2,000 crore as optionally convertible debentures and seeks a waiver of Rs 1,425 crore interest payment from financial creditors - CNBC-TV18 sources.
Six 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 20, Adani Enterprises, IDBI Bank, Jet Airways, PC Jeweller, Reliance Infrastructure and Reliance Power stocks are present in this list.