Nifty formed a doji candle on the daily charts, which indicates indecisiveness over further direction, followed by a spinning top formation in the previous session.
After two days of bull run, Indian equity benchmarks ended flat on September 24 as investors resorted to profit booking.
While some consolidation was expected, analysts said it will offer fresh buying opportunities to investors.
"The consolidation is healthy for the larger uptrend and will provide fresh buying opportunities. The consolidation, once matured, will make way for the next leg of the rally," said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas.
The market will take directional cues from the upcoming September quarter earnings of corporate houses and RBI's monetary policy outcome on October 4.
"From medium to long-term perspective, the outcome of the RBI monetary policy and revival in corporate earnings will be crucial, as it is likely to dictate the trend in the market," said Ajit Mishra Vice President, Research, Religare Broking.
The Sensex index added just 7 points to its previous close to end at 39,097.14 on September 24, with 15 stocks up and 15 down. On the other hand, Nifty lost 12 points to settle at 11,588.20, with 22 stocks in the green and 28 in the red.
Midcaps and smallcaps closed mixed. While the BSE Midcap index slipped 0.51 percent, the Smallcap index settled with a gain of 0.17 percent.Nifty formed a doji candle on the daily charts, which indicates indecisiveness over further direction, followed by a spinning
top formation in the previous session.
Last two sessions of indecisive price patterns are clearly suggesting that the index might have hit a pause button to digest the recent euphoric gains. Hence, the consolidation is expected to continue in the coming session and 11,695 is a crucial level for further upside, experts said.
"Once the Nifty manages to get past 11,695 then a higher target in the zone of 11,772–11,798 can be expected, whereas on the downsides, a close below 11,382 could drag the index towards 11,200 levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, key support level for Nifty is placed at 11,533.27, followed by 11,478.33. If the index starts moving up, key resistance levels to watch out for are 11,649.07 and 11,709.93.
The Nifty Bank closed with a loss of 1.25 percent at 30,183.10 on September 24. The important pivot level, which will act as crucial support for the index, is placed at 29,825.76, followed by 29,468.43. On the upside, key resistance levels are placed at 30,604.26 and 31,025.43.
Call options data
Maximum call open interest (OI) of 28.18 lakh contracts was seen at 11,700 strike price. It will act as a crucial resistance level in the September series.
This is followed by 11,800 strike price, which now holds 23.17 lakh contracts in open interest, and 12,000, which has accumulated 22.77 lakh contracts in open interest.
Significant call writing was seen at the 11,700 strike price, which added 7.33 lakh contracts, followed by 11,900 strike price that added 3.65 lakh contracts and 11,800 strike which added 3.05 lakh contracts.Call unwinding was seen at 11,500 strike price, which shed 2.16 lakh contracts, followed by 11,300, which shed 1.62 lakh
Put options data
Maximum put open interest of 35.14 lakh contracts was seen at 11,500 strike price, which will act as crucial support in September series.
This is followed by 11,400 strike price, which holds 25.35 lakh contracts in open interest, and 11,600 strike price, which has accumulated 21.65 lakh contracts in open interest.
Put writing was seen at the 11,500 strike price, which added 9.03 lakh contracts, followed by 11,600 strike, which added 4.31 lakh contracts and 11,400 strike which added 2.61 lakh contracts.
Put unwinding was seen at 11,100 strike price, which shed 4.19 lakh contracts, followed by 11,300 strike which shed 3.07 lakh contracts and 11,200 strike which shed 13,650 contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
31 stocks saw long buildup
As many as 31 stocks witnessed long buildup on September 24. Based on the highest open interest (OI) future percentage, here are the top 15 stocks in which short build-up was seen.
50 stocks saw long unwinding
Based on the lowest open interest (OI) future percentage, here are the top 15 stocks in which short build-up was seen.
40 stocks saw short build-up
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on highest open interest (OI) future percentage, here are the top 15 stocks in which short build-up was seen.
42 stocks witnessed short-covering
As per available data, 42 stocks witnessed short-covering on September 24. A decrease in open interest, along with an increase in price, mostly indicates a short covering. Based on the lowest open interest (OI) future percentage, here are the top 15 stocks in which short build-up was seen.
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Upcoming analyst or board meetings/briefings:
BF Utilities: The board of directors will meet on September 25 to approve and take on record the financial results for the year ended March 31, 2019.
Greaves Cotton: The board will meet on September 25 to consider the formulation of the employee stock option scheme.INTEGRA Engineering India: The board will meet on September 25 to consider financial results for the quarter ended June
30, 2019.Ipca Laboratories: The board of directors will be held on September 26 to consider issuance of convertible warrants to
promoters and members of the promoter group of the company on a preferential basis.
GOCL Corporation: The board will meet on September 27 to consider special dividend.
Gujarat Alkalies and Chemicals: The board will meet on September 27 to consider the stock split.
Stocks in news:
Rane Engine Valve: CRISIL has reaffirmed long-term rating of "ÇRISL BBB+" with "stable" outlook and short - term rating of "CRlSlL A2".
Aster DM Healthcare: The company has signed 25-year lease pact with KLE Society to set up hospital in Bengaluru.
RPP Infra Projects: The company has bagged new order worth Rs 414 crore in Myanmar.GOCL Corporation: The company has made full repayment of LOC/SBLC facility of $300 million availed for the purpose of
acquisition of Houghton International Inc.
SBI: The proposed 2-day bank strike has been deferred.Bodal Chemicals: The company infomred that Bodal Bangla has been incorporated in Dhaka, Bangladesh as a subsidiary
company of Bodal Chemicals.
Kaveri Seed Company: The board of directors, at its meeting held on September 24, approved the proposal for buyback.AGC Networks: Rating agency CARE has given "CARE D" to the company's long-term bank facility (term loan) worth Rs 21.37
crore. On fund-based long-term facility worth Rs 100 crore, CARE has "CARE C" rating with a stable outlook.InfoBeans Technologies: The company has informed about the acquisition of Philosophie Group Inc. through its wholly-
owned subsidiary.Munjal Auto: ICRA has reaffirmed its rating assigned to the company's long-term, short-term bank facilities and commercial
papers.PI Industries: CRISIL has reaffirmed the long-term rating at "CRISIL AA/Positive" and has further reaffirmed the short-term
rating at "CRISIL A1+".
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 828.49 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 472.81 crore in the Indian equity market on September 24, as per provisional data available on the NSE.
No stock under ban period on NSEThere is no stock under F&O ban for September 25. 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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.