Gaurav Ratnaparkhi of Sharekhan by BNP Paribas feels the index is expected to form another leg on the downside.
It was a weak start to the July series on June 28 as the bears retained power for a major part of the session as traders turned cautious ahead of the Union Budget week.
The BSE Sensex was down 191.77 points at 39,394.64, while the Nifty50 fell 52.60 points to 11,788.90 and formed a bearish candle on the daily charts. However, for the week, the index gained half a percent and formed a bullish candle on weekly scale.
"The Nifty is currently stuck in a high low range of 11,900-11,650 levels, and is currently showing weakness from near the upper end of the range. Technically, pattern formed on weekly scale could be considered as a high wave type pattern, which is currently placed at the crucial support of 11,650 levels (upper area of opening upside gap of 20th May)," Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities told Moneycontrol.
He said the short term trend of Nifty remains rangebound. "We could expect further weakness in the early part of the next week, but are likely to see buying emerging from near the support of 11,700-11,650 again."
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas also feels that the index is expected to form another leg on the downside. "The broader market indices are also likely to follow the suit. Thus traders are recommended to look for selling opportunities in the market."
The broader markets also fell in line with benchmarks as the Nifty Midcap index was down 0.36 percent and Smallcap index declined 0.2 percent. All sectoral indices closed in red barring FMCG and Realty.
We have collated 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 11,788.85 on June 28. According to the Pivot charts, the key support level is placed at 11,752.3, followed by 11,715.8. If the index starts moving upward, the key resistance levels to watch out are 11,848.5 and 11,908.2.
The Nifty Bank closed at 31,105.20, down 164.30 points on June 28. The important Pivot level, which will act as a crucial support for the index, is placed at 31,007.57, followed by 30,909.93. On the upside, key resistance levels are placed at 31,255.87, followed by 31,406.54.
Call options data
Maximum Call open interest (OI) of 14.41 lakh contracts was seen at the 12,000 strike price. This will act as a crucial resistance level for the July series.
This is followed by 12,500 strike price, which now holds 12.78 lakh contracts in open interest, and 12,300, which has accumulated 8.64 lakh contracts in open interest.
Significant Call writing was seen at 12,000 strike price ,which added 2.49 lakh contracts, followed by a 12,300 strike price which added 1.99 lakh contracts and 12,500 strike which added 1.38 lakh contracts.
There was hardly any Call unwinding seen.
Put options data
Maximum Put open interest of 15.47 lakh contracts was seen at the 11,500 strike price. This will act as a crucial support level for the July series.
This was followed by 11,000 strike price, which now holds 15 lakh contracts in open interest and 11,300 strike price, which has now accumulated 11.82 lakh contracts in open interest.
Put writing was seen at the 11,500 strike price, which added 2.48 lakh contracts, followed by 11,300 strike price that added 2.10 lakh contracts and 11,600 strike which added 1.74 lakh contracts.
There was hardly any Put unwinding seen.
Stocks with a high delivery percentage
High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on it.
27 stocks saw a long buildup
20 stocks that saw short covering
A decrease in open interest, along with an increase in price, mostly indicates short covering.
88 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.
30 stocks saw long unwinding
Analyst or Board Meetings/Briefings
Procter & Gamble Hygiene & Healthcare: The board to consider FY19 results and dividend on August 21.
Amber Enterprises: The company will be participating in a non-deal roadshow to meet investors, organised by SBI Caps Securities on July 2, in London, UK.
Torrent Power: The company's officials will meet analyst of Emkay Global on July 1.
Rain Industries: A board meeting is scheduled on August 13 to declare financial results for the June quarter.
Action Construction Equipment: The company's CFO will participate in Motilal Oswal India Investment Cycle Conference on July 3.
Zuari Agro Chemicals: A Board meeting is scheduled on August 12 to declare financial results for the June quarter.
Finolex Industries: The Company's officials will meet investors/analysts on July 1 and 2.
PSP Projects: The company's officials will meet various analysts/institutional investors on July 2.
Zuari Global: A board meeting is scheduled on August 14 to declare financial results for the June quarter.
TTK Healthcare: A board meeting is scheduled on August 9 to declare financial results for the June quarter.
Elecon Engineering: A board meeting is scheduled on July 26 to declare the financial results for the June quarter.
Shree Cement: A board meeting is scheduled on August 9 to declare the financial results for the June quarter.
Info Edge (India): A board meeting is scheduled on August 13 to declare the financial results for the June quarter.
IRB InvIT Fund: 2nd Annual General Meeting to be held on July 29 at Mumbai.
Stocks in news
Jet Airways: Hinduja-Etihad consortium is gearing up to bid for the company under IBC; the Tata Group is exploring potential bid but has not taken final call yet.
Reliance Capital: The company deferred declaration of results.
Avenue Supermarts: The company issued commercial paper of Rs 100 crore.
ONGC: The company is seeking partners to bid for 64 oil, gas producing fields.
JSW Steel: Lenders approve the company's bid for Asian Colour Coated Ispat, it has offered Rs 1,525 crore upfront to financial creditors.
Eveready Industries: Price Waterhouse & Co Chartered Accountants LLP (PWC) has expressed its inability to continue as the auditors of the company. Company appointed Singhi & Co., Chartered Accountants as auditors.
Eveready Industries: The company proposed to enter into an transfer/assignment /license agreement with Madhu Jayanti International Private (MJlPL) for transfer and/or license of the relevant and other trademarks (valued at Rs 6 crore) identified assets, if any, relating to the packet tea products of MJlPL.
Syndicate Bank: The board approved to raise capital up to Rs 500 crore during FY 2019—20 by way of qualified institutional placement (DIP) / Follow on public issue preterenlial allotment or any other mode.
NMDC: The company fixed prices of lump ore (65.53, 6-40mm) at Rs 3,100 per tonne and fines (643, - 1 Omm) at Rs 2,860 per tonne.
Deepak Nitrite: The company, through its wholly owned subsidiary Deepak Phenolics (DPL), achieves a major milestone towards the manufacture of phenol and acetone with an average capacity utilisation of around 80 percent, and having achieved a peak capacity utilization of 100 percent in Q4 FY19 contributes Rs 927 crore to consolidated turnover of Rs 2,715 crore.
NMDC: The company terminates its contract with BHEL for delay in Rs 1,395 crore project.
United Van Der Horst: The company approved the raising of funds by way of creating, offering, issuing and allotting 3,80,000 equity shares of face value of Rs 10 each on preferential basis.
Emco: Archana Capoor resigned from the position of the Independent Director of the company.
Reliance Home Finance: Maturity of certain NCDs of Rs 400 crore has been extended till October 31, 2019, with the formal written consent of the concerned Debenture Trustees and NCD holders.
ABB India: National Company Law Tribunal approved proposed a Scheme of Arrangement between the company and ABB Power Products and Systems India Limited, (a wholly owned subsidiary).
Godrej Properties: QIP committee approved the issue and allotment of 2,26,29,310 equity shares to eligible QIB at the issue price of Rs 928, aggregating to Rs 2,100 crore, pursuant to the issue.
Inox Leisure: The company announced the commencement of its commercial operations of multiplex cinema theatre taken on lease basis in Hyderabad.
Shriram Transport Finance Company: CARE assigned AA+ rating with stable outlook for company's proposed non-convertible debentures of Rs 10,000 crore.
Ugro Capital: National Company Law Tribunal approved scheme of arrangement between Asia Pragati Capfin Private Limited and Ugro Capital Limited (formerly known as Chokhani Securities Limited).
SJVN: Company signed a Memorandum of Understanding (MoU) with NEEPCO (North Eastern Electric Power Corporation Limited) for joint development of power projects in India and abroad with an immediate focus on north-east and the eastern region of the country.
IFCI: ICRA downgraded rating from BBB+ with negative outlook to BBB for company's fund based bank limits, long term bonds and NCDs.
Linde India: The company appointed Robert John Hughes as an Additional Director (Non-Executive).
NRB Industrial Bearings: The company approved the allotment of 25 lakh cumulative, redeemable, non-convertible preference shares, aggregating to Rs 2.5 crore on private placement basis to Devesh Singh Sahney, Chairman, Managing Director and promoter of the company.
DCM Shriram: ICRA reaffirmed rating on term loans at AA but revised outlook to positive from stable.
Amber Enterprises: The company extended the timeline to complete the acquisition of balance stake of 51 percent in Ever Electronics by August 31, 2019 in one or more tranches.
PNC Infratech: CARE revised the credit rating on the bank facilities of company's subsidiary, PNC Delhi Industrialinfra Private Limited to BBB+ with positive outlook, from BBB with stable outlook.
ABC India: The company received an order of Rs 137.70 crore from BHEL for multimodal transportation of export project cargo from India to the MSTPP Rampal Project in Bangladesh.
JK Paper: CRISIL revised its outlook from 'stable' to 'positive' and upgraded its rating of the company.
Datiware Maritime Infra: The company commenced the work order received for the fabrication and the assembly of floating gates of drydocks for the end client Indian Navy.
UPL: The company completed acquisition of Industrias Bioquim Centroamericana, Sociedad Anónima, a company based out of Costa Rica.
Kalpataru Power Transmission: The company received new orders of Rs 975 crore.
Sadbhav Infrastructure Project: Subsidiary Rohtak-Hissar Tollway Private Limited made the outstanding debt servicing payments to its lenders and cleared its pending dues.
(For more bulk deals, click here)
Fund Flow Picture
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 513.91 crore but Domestic Institutional Investors (DIIs) purchased Rs 182.4 crore worth of shares in the Indian equity market on June 28, as per provisional data available on the NSE.
One stock under F&O ban period on NSE
For July 1, DHFL is 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.