Nagaraj Shetti of HDFC Securities said a drop below the immediate support of 11,050 levels could confirm a short term reversal signal in the market.
The market gained for the third consecutive session with the Nifty closing above 11,100 levels on August 27, driven by banking & financials, auto, FMCG and metal stocks. Positive global cues and RBI's decision to transfer Rs 1.76 lakh crore to the government, aided sentiment.
The BSE Sensex climbed 147.15 points to 37,641.27 while the Nifty 50 rose 47.50 points to 11,105.40 and formed a Doji kind of candle on the daily charts, which generally signals indecisiveness among the bulls and bears.
"The short term trend of Nifty continues to be positive. But, the formation of confused type candle pattern at the crucial overhead resistance could be a warning signal for the long positions," Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He said a drop below the immediate support of 11,050 levels could confirm a short term reversal signal in the market. A renewed buying enthusiasm could occur only on a decisive/sustainable move above 11,150-11,180 levels, he added.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors also said the index is sustaining above 5-DMA and 20-DMA indicating short term bullish trend; however, the majority of the oscillators are overbought and the possibility of retracement towards 10,950 levels cannot be ruled out.
As long as Nifty is trading above 10,950 levels it can extend higher towards 200-DMA standing around 11,200 levels, he added.
The gains in broader markets were higher than benchmarks as the Nifty Midcap rose 0.74 percent and Smallcap index was up 1.8 percent.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,105.35 on August 27. According to the pivot charts, key support level is placed at 11,055.93, followed by 11,006.57. If the index starts moving upward, key resistance levels to watch out for are 11,148.23 and 11,191.17.
Nifty Bank closed at 28,126.15, up 0.63 percent on August 27. The important pivot level, which will act as crucial support for the index, is placed at 27,965.44, followed by 27,804.67. On the upside, key resistance levels are placed at 28,282.34 and 28,438.47.
Call options data
Maximum Call Open Interest (OI) of 34.86 lakh contracts was seen at the 11,200 strike price. It will act as a crucial resistance level in the August series.
This is followed by 11,300 strike price, which now holds 27.09 lakh contracts in open interest, and 11,500, which has accumulated 26.70 lakh contracts in open interest.
Significant Call writing was seen at the 11,300 strike price, which added 6.76 lakh contracts, followed by 11,200 strike price, which added 4.84 lakh contracts and 11,400 strike which added 0.97 lakh contracts.
Call Unwinding was seen at 11,000 strike price, which shed 8.83 lakh contracts, followed by 11,100 strike, which shed 7.31 lakh contracts and 10,900 strike which shed 3.42 lakh contracts.
Put options data
Maximum Put Open Interest of 43.32 lakh contracts was seen at 11,000 strike price, which will act as crucial support in August series.
This is followed by 10,800 strike price, which now holds 30.25 lakh contracts in Open Interest, and 10,700 strike price, which has now accumulated 24.30 lakh contracts in open interest.
Put writing was seen at the 11,000 strike price, which added 8.83 lakh contracts, followed by 11,100 strike, which added 5.86 lakh contracts and 10,800 strike, which added 2.31 lakh contracts.
Put unwinding was seen at the 10,600 strike price, which shed 5.84 lakh contracts, followed by 10,500 strike that shed 4.23 lakh contracts and 10,400 strike price which shed 3.54 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.
42 stocks saw a long buildup
72 stocks that saw short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering.
26 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.
23 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Garware Polyester: 62nd Annual General Meeting of the company is scheduled to be held on September 25.
Vascon Engineers: 34th Annual General Meeting of the company to be held on September 23.
CRISIL: Company's officials will meet Arete Services on August 28.
Narayana Hrudayalaya: Company's officials will meet investors on August 28.
Eris Lifesciences: Company's officials will meet Briarwood Chase Management on August 28 and Ambit Capital on August 29.
Rallis India: Company's officials will be participating in Agri & Food Conference organised by Antique Stock Broking on August 30.
Zen Technologies: 26th Annual General Meeting to be held on September 21.
PI Industries: Company's officials will meet CX Partners on August 28 and Motilal Oswal Financial Services on August 29.
Tata Chemicals: Company's officials will meet Sundaram Asset Management and ICICI Prudential Mutual Fund on August 29.
TVS Motor Company: Company's officials will meet Jefferies' analyst on August 29.
Stocks in the news
Hindustan Unilever: Company told CNBC-TV18 that it has taken price reductions in range of 4-6 percent in Lux & Lifebuoy portfolio and the price reduction may be higher on certain packs in order to pass on benefits to consumers.
Allahabad Bank: Lender will offer repo-linked home & MUDRA loans from September 1.
IDBI Bank: Rating Agency S&P placed bank on credit watch negative due to capital breach.
Oberoi Realty: Income Tax team has left the company's premises and company fully co-operated, responded to clarifications sought by I-T Authorities. Normal day-to-day business activities have resumed fully.
Power Grid Corporation: Board approved investment in a solar project in Rajasthan worth Rs 2,578 crore and appointment of KSR Murty as CFO with immediate effect.
Emco: The National Company Law Tribunal appointed Kedarram Ramratan Laddha as Interim Resolution Professional under the provisions of the IBC.
Indosolar: Ved Prakash Roy has been appointed as the Company Secretary and Compliance Officer of the company.
Omaxe: Seema Prasad Avasarala, Non-Executive & Non-Independent Director of the company resigned.
Sambandam Spinning Mills: India Ratings & Research affirmed its credit rating on the term loan at BBB-/Stable.
Shreeji Translogistics: Company recommended issue and allotment of fully paid bonus shares, in the ratio of two equity shares for every one equity share held by shareholders.
Frontline Securities: Company appointed Gauri Shanker Pandey as Chief Financial Officer and Whole Time Key Managerial Personnel.
Bal Pharma: ICRA revised credit rating on the company's long term fund based facilities to BB+ from BBB.
ABC India: CARE revised rating for the company's long term credit facilities from BB+/Stable to BBB-/Stable.
Future Enterprises: Acuite Ratings & Research reaffirmed its credit rating on the company's commercial paper at A1+.
Future Retail: Acuite Ratings & Research reaffirmed its credit rating on the company's commercial paper at A1+.
Premier Explosives: Company's new solid-propellant plant at Katepally, near Hyderabad has been inaugurated.
Dilip Buildcon: Company received the appointed date (August 24) for Saoner-Dhapewada, EPC project in Maharashtra from the National Highways Authority of India.
DB Realty: Promoter created a pledge on 40 lakh shares in favour of Anand Rathi Global Finance.
Nalco: Company appointed GNS & Associates as joint statutory auditors for the financial year 2019-20.
DHFL: Board will consider issuing shares after debt conversion on August 30.
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FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 923.94 crore, while Domestic Institutional Investors (DIIs) bought net Rs 1,162.65 crore worth of shares in the Indian equity market on August 27, as per provisional data available on the NSE.
Fund Flow Picture
No stock under F&O ban period on NSE
On August 28, not a single stock 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.The Great Diwali Discount!
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