Shabbir Kayyumi of Narnolia Financial Advisors said sustained trade below psychological mark 11,600 will accelerate down move towards 11,500 levels.
The market continued its downtrend for the third consecutive session on April 23, weighed by banks and auto stocks.
The BSE Sensex fell 80.30 points to 38,564.88 while the Nifty 50 closed down 18.50 points at 11,576 forming a bearish candle on daily charts.
Nifty is currently placed near the crucial support of 11,550 and expected to slip below this support in the next 1-2 sessions, experts said, adding the formation of a bearish candle following a Bearish Belt Hold on the daily scale indicates that bears are now forcing the market to restrict its momentum.
"A small negative candle was formed with minor upper shadow. Technically, this pattern indicates a temporary halt in the downside momentum," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
He said Nifty is currently placed near the crucial support 11,550 levels and there is no indication of any buying emerging from near the support. "This is not a good sign and the Nifty is expected to slip below this support in the next 1-2 sessions."
Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors said Nifty faced stiff resistance from daily pivot point placed around 11,640 and could not breach it, in spite of 3-4 attempts; however, it fell down to make a new low in the last trading hour.
Sustained trade below psychological mark 11,600 will accelerate down move towards 11,500 levels while a decisive trade above crucial resistance of 11,640 will push the index higher towards bearish gap formed in between 11,727-11,752 marks, he added.
The broader markets were mixed as the Nifty Midcap index gained one-tenth of percent while the Smallcap index fell 0.6 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,575.95 on April 23. According to the Pivot charts, the key support level is placed at 11,545.2, followed by 11,514.4. If the index starts moving upward, key resistance levels to watch out are 11,626.4 and 11,676.8.
The Nifty Bank index closed at 29,479.70, down 208.25 points on April 23. The important Pivot level, which will act as crucial support for the index, is placed at 29,321.23, followed by 29,162.77. On the upside, key resistance levels are placed at 29,772.33, followed by 30,064.96.
Call options data
Maximum Call open interest (OI) of 52.61 lakh contracts was seen at the 11,700 strike price. This will act as a crucial resistance level for the April series.
This was followed by 12,000 strike price, which now holds 37.50 lakh contracts in open interest, and 11,800, which has accumulated 29.84 lakh contracts in open interest.
Significant Call writing was seen at 11,700 strike price, which added 11.02 lakh contracts, followed by 11,600 strike price that added 9.48 lakh contracts and 11,500 strike price that added 1.3 lakh contracts.
Call unwinding was seen at the strike price of 12,000 that shed 3.99 lakh contracts, followed by 11,900 strike price that shed 3.72 lakh contracts.
Put options data
Maximum Put open interest of 27.67 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the April series.
This was followed by 11,600 strike price, which now holds 20.56 lakh contracts in open interest and 11,400 strike price, which has now accumulated 18.19 lakh contracts in open interest.
Put writing was seen at the strike price of 11,500 that added 3.14 lakh contracts, followed by 11,600 strike price that added 2.03 lakh contracts.
Put unwinding was seen at the strike price of 11,800, which shed 2.47 lakh contracts, followed by 11,700 strike price that shed 1.55 lakh contracts and 12,000 strike price that shed 0.80 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 237.47 crore while Domestic Institutional Investors (DIIs) bought Rs 198.35 crore worth of shares in the Indian equity market on April 23, as per provisional data available on the NSE.
Fund flow picture
Stocks with a high delivery percentage
High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.
31 Stocks saw a long buildup
42 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
69 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.
54 stocks saw long unwinding
Bulk Deals on April 23
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Analyst or Board Meet/Briefings
Shree Digvijay Cement Company: Company will announce its March quarter earnings on April 30.
Birla Corporation: Company will announce its March quarter earnings and issuance of non-convertible debentures on private placement basis on May 3.
Maruti Suzuki: Conference call for the analysts and investors is scheduled for April 25.
HCL Technologies: Company will announce its March quarter earnings on May 9.
Stocks in news:
Results on April 24: Bharti Infratel, UltraTech Cement, Indiabulls Housing Finance, ICICI Prudential Life Insurance Company, India Grid Trust, M&M Financial Services, Automotive Stampings & Assemblies, Agro Tech Foods, Benares Hotels, Hexaware Technologies, Meera Industries, Muthoot Capital Services, Shriram City Union Finance, Syngene International, Tata Elxsi
IPO: Neogen Chemicals IPO to open on April 24
ACC Q1: Profit jumped 38.3 percent to Rs 346 crore versus Rs 250.1 crore, revenue grew 8.1 percent to Rs 3,919.1 crore versus Rs 3,624.6 crore YoY.
Tata Global Beverages Q4: Profit fell 61.5 percent to Rs 22.9 crore versus Rs 59.4 crore, revenue grew 5.2 percent to Rs 1,775.5 crore versus Rs 1,688.4 crore YoY.
Coromandel International Q4: Profit jumped 23.2 percent to Rs 110.4 crore versus Rs 89.6 crore; revenue increased 9.4 percent to Rs 2,638.3 crore versus Rs 2,411.8 crore YoY.
Sterlite Technologies Q4: Profit jumped 10.6 percent to Rs 163.2 crore versus Rs 147.6 crore; revenue surged 34.2 percent to Rs 1,791.2 crore versus Rs 1,334.8 crore QoQ.
Sasken Technologies Q4: Profit grew to Rs 27.45 crore versus Rs 18.07 crore; revenue increases to Rs 135.54 crore versus Rs 121.41 crore QoQ.
Board has unanimously approved the proposal to buy-back up to 19,98,678 equity shares of the company at a price not exceeding Rs 850 per share payable in cash for total consideration up to Rs 169.88 crore. The company recommended a dividend of Rs 12.50 per share of Rs 10 each for the year 2018-19.
Piramal Enterprises: ICRA reaffirmed the credit rating of A1+ assigned to commercial papers / short term borrowings of the company. Further, it has reaffirmed the credit ratings of AA to Long Term borrowings of the company and revised the outlook from stable to negative.
IndusInd Bank: NCLT approved IndusInd Bank & Bharat Financial Inclusion merger
Tiger Logistics (India): Company bagged another government project of Chittaranjan Locomotive Works (Indian Railways).
McNally Bharat Engineering Company: Virendra Kumar Verma, Independent Director of the company, has tendered his resignation.
Embassy Office Parks REIT: Debenture Committee approved the issue of rupee-denominated, listed, rated, secured, redeemable, non-convertible debentures by the Embassy Office Parks REIT on a private placement basis for an aggregate amount of Rs 3,650 crore split into two tranches i.e. Tranche A (Rs 3,000 crore) and Tranche B (Rs 650 crore).
Bharat Bijlee: ICRA upgraded short term rating on the company's bank facilities to A1+ from A1 and long term rating to LA+ (Stable) from LA (Stable).
Seven 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 April 24, Adani Power, DLF, IDBI Bank, Idea Cellular, Jet Airways, PC Jeweller and Reliance Power are present in this list.