"The short-term trend of Nifty continues to be negative and one may expect some more weakness in the coming sessions," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Tepid corporate results and IMF's markdown of India's growth forecast pulled down equity benchmark indices Sensex and Nifty on January 21.
Sensex was down 205.10 points to 41,323.81 while Nifty fell 54.60 points to 12,169.90 and formed small bearish candle on daily charts as closing value was lower than opening.
Experts expect the correction along with consolidation, which was warranted after stellar run-up, to continue in coming sessions.
"The short-term trend of Nifty continues to be negative and one may expect some more weakness in the coming sessions. The formation of small negative candle with range movement on January 21 (immediately after the negative reversal of last session) could raise some hopes for bulls to show upside bounce from the lows," Nagaraj Shetti, Technical Research Analyst at HDFC Securities, told Moneycontrol.
He said key lower support area to be watched around is 12,040, where one may expect upside bounce in the market.
All sectoral indices, barring pharma, closed in the red.
"We reiterate our cautious view on the Indian markets given the stretched valuation and muted start to the earnings season. Going forward, the IMF growth forecast cut to 4.8 percent is likely to raise hopes amongst market participants of a big bang budget. Further, the earnings announcement for corporates would also induce stock specific volatility," said Ajit Mishra, VP - Research at Religare Broking.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
According to the pivot charts, the key support level for Nifty is placed at 12,144.73, followed by 12,119.67. If the index moves up, key resistance levels to watch out for are 12,212.43 and 12,255.07.
Nifty Bank closed at 30,947.50, down 0.43 percent on January 21. The important pivot level, which will act as crucial support for the index, is placed at 30,813.73, followed by 30,679.87. On the upside, key resistance levels are placed at 31,126.33 and 31,305.07.
Call options data
Maximum Call open interest (OI) of 34.54 lakh contracts was seen at the 12,500 strike price. It will act as a crucial resistance level in the January series.
This is followed by 12,300 strike price, which holds 28.57 lakh contracts in open interest, and 12,400, which has accumulated 24.09 lakh contracts in open interest.
Significant call writing was seen at the 12,300 strike price, which added 4.7 lakh contracts, followed by 12,200 strike price that added 4.22 lakh contracts and 12,500 strike which added 2.88 lakh contracts.
Call unwinding was witnessed at 12,700 strike price, which shed 0.56 lakh contracts, followed by 12,800 strike which shed 0.51 lakh contracts and 12,600 strike which shed 0.43 lakh contracts.
Put options data
Maximum Put open interest of 34.35 lakh contracts was seen at 12,000 strike price, which will act as crucial support in the January series.
This is followed by 11,500 strike price, which holds 26.95 lakh contracts in open interest, and 11,800 strike price, which has accumulated 20.13 lakh contracts in open interest.
Put writing was seen at the 11,800 strike price, which added nearly 1.62 lakh contracts, followed by 12,200 strike, which added 1.1 lakh contracts and 11,500 strike which added 1.04 lakh contracts.
Put unwinding was seen at 12,300 strike price, which shed 2.45 lakh contracts, followed by 12,500 strike which shed 0.91 lakh contracts and 12,400 which shed 0.77 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
32 stocks saw long buildup
40 stocks saw long unwinding
Based on open interest (OI) future percentage, here are the top 10 stocks in which long unwinding was seen.
49 stocks saw short build-upAn increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on open interest (OI) future percentage, here are the top 10 stocks in which short build-up was seen.
23 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short covering. Here are top 10 stocks that witnessed short-covering on January 8.
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Upcoming analyst or board meetings/briefings
Pokarna: Board meeting is scheduled on January 29 to announce October-December quarter earnings.
Force Motors: Board meeting is scheduled on January 30 to announce October-December quarter earnings.
Indian Energy Exchange: Board meeting is scheduled on January 31 to announce October-December quarter earnings.
Dr Lal PathLabs: Board meeting is scheduled on February 3 to announce October-December quarter earnings.
HPCL: Board meeting is scheduled on February 5 to announce October-December quarter earnings.
AstraZeneca Pharma India: Board meeting is scheduled on February 3 to announce October-December quarter earnings.
Time Technoplast: Board meeting is scheduled on February 13 to announce October-December quarter earnings.
Redington (India): Board meeting is scheduled on February 6 to announce October-December quarter earnings.
NHPC: Board meeting is scheduled on February 7 to announce October-December quarter earnings.
Phillips Carbon Black: Board meeting is scheduled on February 13 to announce October-December quarter earnings.
Stocks in the news
Results on January 22: Larsen & Toubro, Axis Bank, Asian Paints, SBI Life Insurance, RBL Bank, Agro Tech Foods, KPR Mill, Motilal Oswal Financial Services, Hi-Tech Pipes, AU Small Finance Bank, Creditaccess Grameen, AXISCADES Engineering, Supreme Petrochem, Sharda Cropchem, Ujjivan Small Finance Bank, RS Software, Syngene International, Genus Power Infrastructures, VST Industries, CEAT, Cigniti Technologies, Gateway Distriparks, Rane Engine Valve, Supreme Petrochem, Eimco Elecon, Alembic Pharmaceuticals, Raymond, IIFL Wealth Management, Tata Communications, Hindustan Media Ventures
Glenmark Pharma: Board approved sale of India and Nepal gynecology operations for Rs 115 crore.
HDFC AMC: Q3 profit jumps 45 percent to Rs 352.55 crore, revenue rises 10 percent to Rs 524.73 crore YoY.
Polycab India: Q3 consolidated profit rises 14.4 percent to Rs 221 crore, revenue jumps 23.8 percent to Rs 2,507 crore YoY.
Hatsun Agro: Q3 consolidated profit surges 50 percent to Rs 28 crore, revenue increases 16.1 percent to Rs 1,340.2 crore YoY.
Havells: Q3 consolidated profit rises 7.4 percent to Rs 201.2 crore, revenue dips 9.9 percent to Rs 2,273.3 crore YoY.
Snowman Logistics: Q3 loss at Rs 3.4 crore against profit at Rs 2.35 crore, revenue dips to Rs 58.76 crore versus Rs 59.33 crore YoY.
IndiaMart InterMesh: Q3 consolidated profit jumps 123.83 percent to Rs 62 crore, revenue surges 23.4 percent to Rs 164.9 crore YoY.
Tejas Networks: Q3 consolidated loss at Rs 112 crore versus profit of Rs 32.8 crore, revenue falls sharply to Rs 86.7 crore versus Rs 184.3 crore YoY.
Sasken Technologies: Q3 profit rises 3.1 percent to Rs 23.4 crore, revenue dips 5.3 percent to Rs 119 crore QoQ.
Mayur Uniquoters: Company announced the commencement of commercial operation at PU plant in Morena.
ZF Steering Gear India: Pithampur plant started commercial production.
OnMobile Global: Branch of the company in United Kingdom has been dissolved.
Indian Card Clothing Company: Pimpri plant in Pune suddenly caught fire on January 20, 2020, which has been non-operational since last year.
Allahabad Bank: Board meeting is scheduled on January 24 to consider a proposal for raising equity capital of the bank by an amount aggregating upto Rs 2,153 crore through preferential allotment to the Government of India.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 50.08 crore, and domestic institutional investors (DIIs) offloaded shares of worth Rs 307.81 crore in the Indian equity market on January 21, provisional data available on the NSE showed.
One stock under F&O ban on NSEYes Bank is under the F&O ban for January 22. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.