The near term trend of Nifty is rangebound with weak bias and the crucial lower supports to be watched for the next week is at 11,760, said Nagaraj Shetti of HDFC Securities
The equity market fell sharply on June 14 after India announced retaliatory tariffs on American goods. Banking & financials, auto and FMCG stocks fell the most.
The BSE Sensex plunged 289.29 points to 39,452.07 while the Nifty fell 90.70 points to 11,823.30 and formed bearish candle on daily and weekly scale. For the week, both benchmark indices declined 0.4 percent each.
"A long negative candle was formed on June 14 and the Nifty is placed near the crucial support of 11,770, which is a strong support level as per the concept of change in polarity," Nagaraj Shetti - Technical Research Analyst, HDFC Securities told Moneycontrol.
"We observe a formation of head and shoulder type pattern as per daily timeframe chart (not a classical one) with the neckline placed at 11,770 levels. Hence, a decisive move below this neckline support could open up a potential downside pattern target of 11,525 in the near term (this pattern could activate only on a decline below the support of 11,770)," he said.
The near term trend of Nifty is rangebound with weak bias and the crucial lower supports to be watched for the next week is at 11,760, he added.
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas also said the index still continues to hover around the key supports.
"In terms of the price patterns, the running triangular pattern looks intact with a mild throw under. The daily Bollinger Bands, being in a contraction phase, suggests the rangebound activity can continue in the next few sessions. The Nifty will be set for the next up move once the consolidation is over," he added.
The broader markets also fell in line with benchmarks. The Nifty Midcap index dropped 0.9 percent and Smallcap index 0.8 percent as five shares declined for every two shares rising on the NSE.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
Nifty closed at 11,823.30 on June 14. According to the Pivot charts, the key support level is placed at 11,776.73, followed by 11,730.17. If the index starts moving upward, key resistance levels to watch out are 11,890.83 and 11,958.37.
Nifty Bank closed at 30,614.35, down 361.75 points on June 14. The important Pivot level, which will act as crucial support for the index, is placed at 30,404.57, followed by 30,194.84. On the upside, key resistance levels are placed at 30,928.37, followed by 31,242.43.
Call options data
Maximum Call open interest (OI) of 24.40 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the June series.
This is followed by 12,500 strike price, which now holds 22.99 lakh contracts in open interest, and 12,200, which has accumulated 15.91 lakh contracts in open interest.
Significant Call writing was seen at 11,900 strike price that added 1.67 lakh contracts, followed by 12,100 strike price that added 1.52 lakh contracts and 12,000 strike price, which added 1.13 lakh contracts.
Call unwinding was seen at the strike price of 12,300, which shed 1.03 lakh contracts, followed by 12,400 strike price that shed 0.33 lakh contracts.
Put options data
Maximum Put open interest of 26.68 lakh contracts was seen at 11,500 strike price. This will act as a crucial support level for the June series.
This was followed by 11,800 strike price, which now holds 16.91 lakh contracts in open interest and 11,700 strike price, which has now accumulated 16.87 lakh contracts in open interest.
Put writing was seen at the 11,400 strike price, which added 0.94 lakh contracts, followed by 11,600 strike price that added 0.58 lakh contracts.
Put unwinding was seen at the strike price of 11,800, which shed 1.17 lakh contracts, followed by 11,700 strike price that shed 1.16 lakh contracts.
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.
11 stocks saw a long buildup
19 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
87 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.
77 stocks saw long unwinding
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 238.64 crore while Domestic Institutional Investors (DIIs) bought Rs 376.47 crore worth of shares in the Indian equity market on June 14, as per provisional data available on the NSE.
Fund flow picture
Stocks in news
Aster DM: ICRA upgraded credit rating to BBB+ from A-; outlook changed to Positive from Stable.
BHEL: Company wins 2 EPC orders worth Rs 800 crore from NTPC & Gujarat State Electricity Corporation.
Reliance Infrastructure Q4: Consolidated net loss at Rs 3,301 crore versus profit of Rs 133 crore; revenue at Rs 4,012.7 crore versus Rs 3,075.2 crore YoY.
Coromandel International: Gujarat Pollution Board revokes its earlier closure order for Gujarat unit.
Indiabulls Real: Promoter releases pledge on 1 crore shares on June 14.
Indiabulls Housing Finance: Promoter releases pledge on 42 lakh shares on June 14.
Fortis Healthcare: Company repays entire loan availed from Citi Bank; closes bidding process for stake sale in RHT Health Trust as no firm proposal is received.
Cadila Healthcare: Subsidiary Alidac Pharma gets Establishment Inspection Report for Ahmedabad unit. USFDA conducted a Pre-Approval Inspection (PAI) from March 18-26.
Jaypee Infra: Committee Of Creditors will meet on June 20.
NDTV: SEBI bars promoters (Prannoy, Radhika Roy) from accessing securities markets for two years.
Corporation Bank: 1-year MCLR cut by 5 bps to 8.85 percent.
CCL Products: India Ratings revises outlook to Positive from Stable; affirmed long-term rating at A+.
Bharat Financial: Company assigns a pool of receivables worth Rs 1,546 crore to a private bank.
DHFL: Company made principle payment of Rs 100 crore and interest of Rs 25.5 lakh on NCDs due June 14.
United Bank: Bank cuts 1-year MCLR to 8.75 percent from 8.8 percent.
New India Assurance: Company likely to announce bancassurance with IDBI Bank, reported CNBC-TV18 quoting sources.
Laurus Labs: USFDA completed inspection of API facilities in Units 1 and 3 with two observations that are procedural in nature.
Sandhar Technologies: Company has signed a joint venture agreement with Winnercom Co. Ltd., Republic of Korea.
FDC: Compamy has been granted ANDA approval by USFDA, for Dorzolamide and Timolol Ophthalmic solution USP 22.3mg/6.83mg per ml, a generic version of Cosopt of Oak Pharmaceuticals Inc.
Elecon Engineering Company: Company received an order from BHEL for supply and erection of stacker cum reclaimer machines at its Udangudi STPP site, Thoothukudi, Tamil Nadu worth Rs 79.12 crore.
PG Electroplast: Fire broke out on June 15 in washing machine division of the company, Greater Noida, UP.
Indraprastha Medical Corporation: Ashok Bajpai resigned from the position of Managing Director of the company due to personal reasons.
Divi's Laboratories: The USFDA concluded inspection of Unit-II at Bheemunipatnam, Andhra Pradesh with no observations. This was a general cGMP inspection by the USFDA.
Symphony: Company incorporated a wholly owned subsidiary company in Brazil.
Relaxo Footwears: Company has fixed June 27 as the record date to determine eligible shareholders entitled to receive the bonus shares.
Novartis India: Company approved the appointment of Sanjay Murdeshwar as Vice Chairman and Managing Director.
CreditAccess Grameen: Company appointed BR Diwakar, CFO, as an additional director on the board.
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Analyst or Board Meet/Briefings
Unitech: Board meeting is scheduled on June 25 to consider and approve the audited financial results for the quarter and year ended on March 31, 2019.
Mphasis: Company will be meeting investors/analysts on one-on-one basis on June 18 and 19 in Mumbai.
Eris Lifesciences: Company's officials will meet Sectoral Asset Management on June 18.
RITES: Board meeting is scheduled to be held on June 24 to consider the proposal for issuance of bonus shares.
HDFC Bank: Board meeting is scheduled on July 20 to consider June quarter financial results.
Byke Hospitality: Conference Call Invitation scheduled to be held on June 17 to discuss March quarter financial results.
Four stocks under F&O ban period on NSE
For June 17, IDBI Bank, PC Jeweller, Reliance Capital and Reliance Infrastructure are under the F&O ban period.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.