According to Romesh Tiwari of CapitalAim, with no clarity about relief measures on surcharge tax on FPI and stimulus for other sectors including autos, the Indian market may see further selling pressure with negative global markets.
The market wiped out the two-day gains from the previous sessions and saw the biggest single-day fall in the past 30 days on August 13, dented by weak domestic and global cues. Reliance Industries' 10 percent rally, however, restricted the losses to some extent.
The BSE Sensex plunged 623.75 points or 1.66 percent to 36,958.16, while the Nifty50 lost 183.80 points or 1.65 percent to 10,925.90 and formed a large bearish candle, resembling a Long Black Day-kind of formation on daily charts.
"The short term trend of Nifty seems to have reversed sharply, after a small rise. There is possibility of more weakness in the next one or two sessions and the Nifty could retest the recent swing low of 10,782 level," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He said that on the downside, the 10,780-10,700 level is going to be an important support zone for the market in the near term. As long as this area is protected, there is a chance of an upside bounce again from the lows, Shetti added.
According to Romesh Tiwari, Head of Research at CapitalAim, with no clarity about relief measures on surcharge tax on FPI and stimulus for other sectors including autos, the Indian market could witness further selling pressure on negative global markets.
The broader market also saw heavy selling pressure with Nifty Midcap and Smallcap indices falling 2.17 percent and 1.6 percent, respectively. Among sectors, Nifty Bank, Auto, FMCG and IT were hit hard, losing between 2 and 4 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,925.85 on August 13. According to the pivot charts, key support level is placed at 10,836.3, followed by 10,746.8. If the index starts moving upward, key resistance levels to watch out for are 11,080.6 and 11,235.4.
Nifty Bank closed at 27,729.10, down 702.80 points. The important pivot level, which will act as crucial support for the index, is placed at 27,488.8, followed by 27,248.5. On the upside, key resistance levels are placed at 28,164.1 and 28,599.1.
Call options data
Maximum Call Open Interest (OI) of 25.67 lakh contracts was seen at the 11,000 strike price. It will act as a crucial resistance level in August series.
This is followed by 11,500 strike price, which now holds 25.20 lakh contracts in open interest, and 11,200, which has accumulated 18.38 lakh contracts in open interest.
Significant Call Writing was seen at the 11,000 strike price, which added 4.87 lakh contracts, followed by 11,200 strike price, which added 3.36 lakh contracts and 11,100 strike which added 3 lakh contracts.
Call Unwinding was seen at 10,800 strike price, which shed 0.09 lakh contracts, followed by 10,600 strike which shed 0.06 lakh contracts.
Put options data
Maximum Put Open Interest of 33.84 lakh contracts was seen at 11,000 strike price, which will act as crucial support in August series.
This is followed by 10,700 strike price, which now holds 23.15 lakh contracts in Open Interest, and 10,800 strike price, which has now accumulated 20.39 lakh contracts in open interest.
Put Writing was seen at the 10,600 strike price, which added 3.1 lakh contracts, followed by 11,000 strike, which added 0.54 lakh contracts and 11,200 strike, which added 0.50 lakh contracts.
Put Unwinding was seen at the 10,800 strike price, which shed 3.72 lakh contracts, followed by 10,900 strike that shed 2.07 lakh contracts and 11,100 strike price which shed 1.57 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.
5 stocks saw a long buildup
6 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
77 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.
76 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Yes Bank: Lender will consider & approve QIP issue price on August 14.
Shriram City Union Finance: Company's officials will meet Essel Mutual Fund on August 14.
Vardhman Textiles: IIFL is organizing Earnings Conference Call of Vardhman Textiles Limited to discuss the company's business strategy and outlook post the declaration of its Q1FY20 results on August 14.
Sadbhav Engineering: Company will hold Post Results Conference Call with investors on August 16 to discuss the financial performance.
Phoenix Mills: Company will be participating in the Conference organized by Spark Capital on August 14 in Mumbai.
Apollo Hospitals Enterprise: Conference call for the analysts/investors is scheduled to be held on August 14 to discuss the financial results for the quarter ended June 2019.
Crompton Greaves Consumer Electricals: Company's officials will attend Motilal Oswal Conference and meet Fiera Capital on August 20.
Rallis India: Company's officials will meet representatives of Quantum Securities, Investec Securities and N Square Capital on August 19.
Chambal Fertilisers & Chemicals: Analyst / Institutional Investor Call on the financial results of the company for the quarter ended June 2019, will be on August 14.
Shakti Pumps India: Company is going to host a conference call for Investors and analysts on August 16 for the financial results for the quarter ended June 2019.
Stocks in news
Results on August 14: Grasim Industries, IDBI Bank, Wockhardt, Jindal Steel & Power, Indiabulls Real Estate, General Insurance Corporation of India, GMR Infrastructure, IDFC, HDIL, Reliance Capital, HEG, Repco Home Finance, Voltamp Transformers, Deepak Fertilizers, Indraprastha Gas, Suzlon Energy, Jain Irrigation Systems, IIFL Finance, Gateway Distriparks, Unitech, Zee Learn, Sadbhav Engineering, Prabhat Dairy
ONGC Q1: Profit jumps 46 percent to Rs 5,904 crore versus Rs 4,044.6 crore, revenue falls 0.8 percent to Rs 26,554.7 crore versus Rs 26,758.5 crore QoQ.
Wabco India Q1: Profit dips 26.7 percent at Rs 55 crore versus Rs 74.7 crore, revenue declines 14.7 percent to Rs 637.8 crore versus Rs 747.3 crore YoY.
Balmer Lawrie Q1: Consolidated profit falls 37.6 percent to Rs 24 crore versus Rs 38.9 crore YoY, revenue slips 11.8 percent to Rs 431.4 crore versus Rs 488.9 crore YoY.
Apollo Hospitals Q1: Consolidated profit jumps 68.5 percent to Rs 57 crore versus Rs 33.9 crore, revenue rises 16.4 percent to Rs 2,571.9 crore versus Rs 2,210.5 crore YoY.
Kaveri Seed Q1: Consolidated profit climbs 9.6 percent to Rs 230 crore versus Rs 210.1 crore, revenue rises 8.4 percent to Rs 627.6 crore versus Rs 578.7 crore YoY.
Ashoka Buildcon Q1: Profit increases 1.1 percent to Rs 64.6 crore versus Rs 63.9 crore, revenue jumps 28.2 percent to Rs 876.8 crore versus Rs 683.7 crore YoY.
RITES Q1: Consolidated profit rises 12.6 percent to Rs 98 crore versus Rs 87 crore, revenue jumps 61.8 percent to Rs 537.7 crore versus Rs 332.2 crore YoY.
Manappuram Finance Q1: Profit climbs 36.1 percent to Rs 269.6 crore versus Rs 200 crore, revenue surges 25.2 percent to Rs 1,144 crore versus Rs 913.8 crore YoY.
PFC Q1: Consolidated profit dips 0.1 percent to Rs 1,383 crore versus Rs 1,384 crore, revenue rises 8.5 percent to Rs 7,580 crore versus Rs 6,984 crore YoY.
Godrej Industries Q1: Consolidated profit jumps 31.1 percent to Rs 103.4 crore versus Rs 78.8 crore, revenue dips 3.6 percent to Rs 2,845.1 crore versus Rs 2,951.3 crore YoY.
HDFC Life Insurance: Standard Life to sell 2.5 percent with an upsize option of additional 0.7 percent in HDFC Life on August 14 - CNBC-TV18.
Nalco Q1: Consolidated profit falls 85.8 percent to Rs 97.9 crore versus Rs 687.2 crore, revenue dips 29.9 percent to Rs 2,084.1 crore versus Rs 2,973.3 crore YoY.
Rain Industries Q1: Consolidated profit slips 51.7 percent to Rs 147 crore versus Rs 303.7 crore, revenue declines 12.2 percent to Rs 3,341.1 crore versus Rs 3,805.5 crore YoY.
Glenmark Pharma Q1: Profit falls 53.1 percent to Rs 109.3 crore versus Rs 233 crore, revenue rises 7.3 percent to Rs 2,322.9 crore versus Rs 2,165.6 crore YoY.
NMDC Q1: Profit rises 20.9 percent to Rs 1,179.3 crore versus Rs 975.3 crore, revenue jumps 34.8 percent to Rs 3,263.7 crore versus Rs 2,422 crore YoY.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth Rs 638.28 crore, while Domestic Institutional Investors (DIIs) purchased Rs 201.53 crore worth of shares in the Indian equity market on August 13, as per provisional data available on the NSE.
Fund Flow Picture
One stock under F&O ban period on NSE
On August 14, DHFL is 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.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.