Shabbir Kayyumi of Narnolia Financial Advisors said Nifty may continue its downside journey towards crucial support zone of 11,430-11,460 levels.
Benchmark indices fell for the fifth session in a row on May 7 with Sensex plunging 323.71 points and Nifty50 closing below 11,500.
"The crucial lower support of 11,550 was broken on the downside and Nifty closed below it. In the short term, next lower levels to be watched at 11,400," Nagaraj Shetti, Senior Technical & Derivative Analyst, HDFC Securities, told Moneycontrol.
Shabbir Kayyumi, Head of Technical Research, Narnolia Financial Advisors, said the index has breached previous month's low by trading below 11,549.
According to him, index may continue its downside journey towards crucial support zone of 11,430-11,460 levels while a decisive close above crucial resistance of 11,571 will only accelerate upmove, taking it higher towards 11,640 levels.
Among sectors, Nifty Bank, Metal and Realty were biggest losers, falling more than a percent each while IT was only gainer with moderate gains.
The broader markets also fell in line with frontline indices. The Nifty Midcap index was down 1.2 percent and Smallcap index declined 1 percent.
Key support and resistance level for Nifty
Nifty closed at 11,497.90 on May 7. According to the Pivot charts, the key support level is placed at 11,435.93, followed by 11,373.97. If the index starts moving upward, key resistance levels to watch out are 11,608.43 and 11,718.97.
The Nifty Bank index closed at 29,288.20, down 330.25 points on May 7. The important Pivot level, which will act as crucial support for the index, is placed at 29,076.43, followed by 28,864.67. On the upside, key resistance levels are placed at 29,667.73, followed by 30,047.27.
Call options data
Maximum Call open interest (OI) of 15.84 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the May series.
This was followed by 11,800 strike price, which now holds 8.42 lakh contracts in open interest, and 11,700, which has accumulated 7.16 lakh contracts in open interest.
Significant Call writing was seen at the strike price of 12,000, which added 1.15 lakh contracts, followed by 11,600 strike that added 0.67 lakh contracts.
Call unwinding was seen at the strike price of 11,900 that shed 0.26 lakh contracts, followed by 11,000 strike price that shed 0.09 lakh contracts.
Put options data
Maximum Put open interest of 23.24 lakh contracts was seen at 11,000 strike price. This will act as a crucial support level for the May series.
This was followed by 11,500 strike price, which now holds 20.80 lakh contracts in open interest and 11,800 strike price, which has now accumulated 15.63 lakh contracts in open interest.
Put writing was seen at the strike price of 11,800 which added 4.63 lakh contracts, followed by 11,300 strike that added 1.53 lakh contracts and 11,500 strike which added 1.22 lakh contracts.
Significant Put unwinding was seen at the strike price of 11,700, which shed 0.32 lakh contracts, followed by 11,000 strike price that shed 0.22 lakh contracts and 11,100 strike price that shed 0.15 lakh contracts.
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 645.08 crore while Domestic Institutional Investors (DIIs) bought Rs 818.84 crore worth of shares in the Indian equity market on May 7, 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.
10 stocks saw a long buildup
23 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
82 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.
83 stocks saw long unwinding
Bulk Deals on May 7
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Analyst or Board Meet/Briefings
Gujarat Sidhee Cement: Company will announce its March quarter earnings on May 24.
Ramco Systems: Company will announce its March quarter earnings on May 22.
Indian Metals & Ferro Alloys: Company will announce its March quarter earnings on May 18.
Praj Industries: Company will announce its March quarter earnings on May 16.
Central Bank of India: Company will announce its March quarter earnings on May 15.
Kaveri Seed Company: Company will announce its March quarter earnings on May 27.
Mirc Electronics: Company will announce its March quarter earnings on May 29.
Polycab India: Company will announce its March quarter earnings on May 14.
United Breweries: Board to consider FY19 results & dividend on May 20.
NCC: Board to consider FY19 results & dividend on May 24.
IDFC: Board to consider FY19 results & dividend on May 24.
KEI Industries: Board to consider FY19 results & dividend on May 21.
Stocks in news:
Results on May 8: Titan Company, Alembic Pharmaceuticals, Chennai Petroleum Corporation, CreditAccess Grameen, Dishman Carbogen Amcis, Dhanlaxmi Bank, Shriram Transport Finance, Tata Communications, Satin Creditcare Network, Alstone Textiles (India), Artemis Global Life Sciences, Artson Engineering, Axiscades Engineering, Dutron Polymers, EID Parry (India), Emami Paper Mills, Gillette India, Indraprastha Medical Corp, International Combustion (India), JK Paper, JMC Projects, JSW Holdings, KEC International, Kokuyo Camlin, Kopran, KSB, Landmarc Leisure Corporation, MAS Financial Services, Morarjee Textiles, Procter & Gamble Hygiene, Pranavaditya Spinning Mills, Rain Industries, RR MetalMakers India, Saregama India, Sharp India, Simplex Mills Company, Simplex Papers, Simplex Realty, Shriram Asset Management, Srikalahasthi Pipes, Trinity League India, Uttam Value Steels, Vertex Securities
Vedanta Q4: Consolidated profit falls 43.3 percent to Rs 3,218 crore versus Rs 5,675 crore; revenue declines 15.1 percent to Rs 23,468 crore versus Rs 27,630 crore YoY.
Rashtriya Chemicals & Fertilizers Q4: Profit jumps to Rs 48.47 crore versus Rs 29.54 crore; revenue rises to Rs 2,267 crore versus Rs 1,961 crore YoY.
Star Cement Q4: Consolidated profit jumps to Rs 1.81 crore versus Rs 0.96 crore; revenue rises to Rs 534.43 crore versus Rs 523.3 crore YoY.
Essel Propack Q4: Consolidated profit increases to Rs 52.38 crore versus Rs 44.79 crore; revenue rises to Rs 694 crore versus Rs 628 crore YoY.
Mahindra Logistics Q4: Consolidated profit rises to Rs 23.91 crore versus Rs 20.88 crore; revenue increases to Rs 1,014.7 crore versus Rs 892.66 crore YoY.
Alembic Pharmaceuticals: Company entered into a joint venture agreement with SPH SINE Pharmaceutical Laboratories Co Ltd, China & Adia (Shanghai) Pharma Co Ltd, China.
Listing on May 8: Neogen Chemicals
One stock under ban period on NSE
Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.For May 8, Jet Airways is in the list for stocks under a ban.