According to Pivot charts, Nifty's key support level is placed at 10,883.93, followed by 10,800.47. If the index starts moving upwards, key resistance levels to watch out are 11,110.54 and 11,253.67.
The Nifty50 started off the week on negative note, extending losses for fifth consecutive session on Monday. The index after gap opening immediately slipped into red and closed below psychological 11,000 levels for first time since July 19, forming bearish candle on the daily charts which also resembles a 'Bearish Beld Hold' kind of pattern.
A 'Bearish Belt Hold' pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.
Fear of liquidity crunch in NBFCs, trade tensions between US and China, rising crude oil prices and weakening rupee weighed on sentiment.
All sectoral indices closed sharply lower barring IT that gained more than 2 percent. The Nifty Midcap index has fallen more than frontline indices, declining 2.77 percent.
The Nifty50 after opening higher at 11,164.40 hit an intraday high of 11,170.15, but immediately wiped out opening gains and extended losses as the day progressed. The index has broken 11,000 levels and hit a day's low of 10,943.60, before closing below 100-day moving average, down 175.70 points at 10,967.40.
The 50-share NSE index lost 793 points or 6.7 percent from its record high of 11,760 seen on August 28.
After consistent sell-off, short covering could be possible ahead of expiry of September futures & options contracts, experts said.
"Bears were on rampage for second day in a row as Nifty50 continued to slide downwards before signing off the session with a long bearish candle which resembles a Bearish Belt Hold formation. In this process it has breached multiple supports and settled below its 100-Day Moving average," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
However, as selling appears to be over done in last two sessions some stability owing to short covering can't be ruled ahead of the forthcoming expiry, according to him.
He said besides, whenever long lower shadows are registered, as witnessed in Friday’s session, prices of financial assets have the tendency to consolidate for a while inside the range of such a lower shadow before making a fresh move in either of the directions.
He feels a minor strength in indices can be seen if Nifty50 trades above 11,170 on closing basis whereas breach of 10,866 will initially lead to the test of 200-Day EMA whose value is placed around 10,774 levels. "For time being it looks prudent for short term traders to take profits out of their short positions and wait for a pull back rally to reinstate fresh shorts."
India VIX moved up sharply by 14.19 percent to 17.74 and it is now at highest levels in last seven months. Rising volatility with falling Put Call Ratio suggests that bears are holding the tight grip on the market, experts said.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,967.40 on Monday. According to Pivot charts, the key support level is placed at 10,883.93, followed by 10,800.47. If the index starts moving upwards, key resistance levels to watch out are 11,110.54 and 11,253.67.
Nifty Bank
The Nifty Bank index closed at 24,925.20, down 671.70 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,699.97, followed by 24,429.63. On the upside, key resistance levels are placed at 25,445.17, followed by 25,920.03.
Call Options Data
Maximum call open interest (OI) of 31.70 lakh contracts was seen at the 11,500 strike price. This will act as a crucial resistance level for the September series.
This was followed by the 11,200 strike price, which now holds 30.24 lakh contracts in open interest, and 11,600, which has accumulated 28.76 lakh contracts in open interest.
Call writing was seen at 11,100 strike, which added 13.33 lakh contracts, followed by 11,000 which added 11.26 lakh contracts and 11,200 which added 10.12 lakh contracts.
Highest Call unwinding was seen at the strike price of 11,400 which shed 3.84 lakh contracts, followed by 11,500 which shed 1.98 lakh contracts and 11,600 which shed 1.49 lakh contracts.
Put Options data
Maximum put open interest of 41.22 lakh con tracts was seen at the 11,000 strike price. This will act as a crucial support level for the September series.
This was followed by the 10,800 strike price, which now holds 31.55 lakh contracts in open interest, and the 11,200 strike price, which has now accumulated 22.28 lakh contracts in open interest.
Put writing was seen at the strike price of 10,800, which added 14.62 lakh contracts in open interest, followed by 10,700 which added 5.86 lakh contracts and 10,900 strike which added 4.98 lakh contracts.
Put unwinding was seen at the strike price of 11,100, which shed 5.82 lakh contracts in open interest, followed by 11,200 which shed 3.49 lakh contracts and 11,600 which shed 2.61 lakh contracts.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 523.94 crore while domestic institutional investors bought shares worth Rs 1,527.67 crore in the Indian equity market on Monday, as per provisional data available on the NSE.
Stocks with high delivery percentage
High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.
1 stock saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
179 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.
CARE Ratings: The Pabrai Investment Fund II LP bought 2,32,341 shares of the company at Rs 1,224.93 per share on the NSE and 2,79,690 shares at Rs 1,225.01 per share on the BSE.
Mawana Sugars: Renu bought 2,05,000 shares of the company at Rs 56.68 per share on the NSE.
Rajshree PolyPack: 3i Wealth Advisors bought 91,000 shares of the company at Rs 111.05 per share on the NSE.
Sumit Woods: Amit R Agarwal purchased 96,000 shares of the company at Rs 45.42 per share on the NSE.
Supreme Engineering: Ankit Raj Organo Chemicals sold 3,60,000 shares of the company at Rs 27.91 per share on the NSE.
(For more bulk deals, click here)
Analyst or Board Meet/Briefings
Bandhan Bank: Board of directors to meet on October 10 to consider unaudited financial results for the quarter and half year ending on September 2018.
Sundaram-Clayton: Board of directors to meet on October 24 to consider unaudited financial results for the quarter and half year ending on September 2018.
TVS Motor Company: Board of directors to meet on October 23 to consider unaudited financial results for the quarter and half year ending on September 2018.
Kansai Nerolac Paints: Board of directors to meet on October 22 to consider unaudited financial results for the quarter and half year ending on September 2018.
Bharat Forge: Company's officials are meeting SBI MF on September 25, Mitsubishi UFJ on September 26 and Morgan Stanley Investment Management on September 28.
Bodal Chemicals: Company is meeting with analyst/investor, through its Executive Director, Ankit S Patel and Chief Financial Officer, Mayur S Padhya on September 25.
Shakti Pumps (India): Company is going to participate in Investors Meet AMSEC SUMMIT conducted by AMSEC on September 25 at Mumbai.
PSP Projects: Company's officials are meeting Axis Bank on September 26 and going to participate in Investors Meet AMSEC SUMMIT conducted by AMSEC on September 25 at Mumbai.
UFO Moviez India: Company's officials are meeting analysts/investors in ICICI Securities Media Conference on September 25.
Greaves Cotton: Company's officials are meeting analysts/investors on September 25, 26 and 27.
Westlife Development: Company would be having one on one and group investor meetings in Taiwan on September 25, 26 and 27.
Skipper: Company's executive are scheduled to attend Annual Investor Conference organised by Asian Markets Securities Pvt. Ltd., namely 'AMSEC Summit' on September 25 in Mumbai.
Welspun India: Company's officials are scheduled to attend Annual Investor Conference organised by Asian Markets Securities Pvt. Ltd., namely 'AMSEC Summit' on September 25 in Mumbai.
Den Networks: Company's officials will be meeting investors on September 25.
HEG: Senior management of the company will be participating at The Metal Medley" - An exclusive Investor Conference on Metals Sector in Mumbai on September 28.
Escorts: Company's officials will interact with investors/fund houses in non deal road show in USA organised by Credit Suisse during September 24-28.
Adani Green Energy: Company's officials are meeting with investors in USA and Canada during September 26-October 3.
Finolex Industries: Analyst/investor meet and conference call will be held on September 25.
Tata Elxsi: Board of directors to meet on October 8 to consider unaudited financial results for the quarter and half year ending on September 2018.
PI Industries: Company's officials are meeting analysts/investors on September 25, 26 and 28.
Welspun Enterprises: Company is going to participate in Investors Meet AMSEC SUMMIT conducted by AMSEC on September 25 at Mumbai.
Inox Leisure: Company's officials are meeting Taiyo Pacific Partners on September 25.
Stocks in news
Kajaria Ceramics: Board approved acquisition of 30 lakh equity shares of Kajaria Floera Ceramics Private Limited (Fleora), a subsidiary company and approved incorporation of a wholly-owned subsidiary company in USA by making investment/loan not exceeding $1 million.
Unichem Laboratories: ICRA assigned a long-term rating of A+ with a stable outlook for Rs 30 crore Line of Credit (LOC) of the company.
Vakrangee: Company entered into distribution agreement with Aditya Birla Housing Finance, which shall offer distribution of home loan and other related products through Nextgen Vakrangee Kendras.
Adlabs Entertainment: Company to develop and operate a new entertainment park in Amaravathi, Andhra Pradesh.
Mangalam Drugs & Organics: Company received the final approval from WHO for the drug Efavirenz.
ABB: Company launched its most economical charging solution for electric vehicles.
Zensar Technologies: Company launched 3 in 1 Insurance Module, which provides insurance companies a centralised data environment across consumer, agent and employee data. Company selected as IT transformation partner by Ruffer LLP - To help enhance its 'client first' approach.
Oriental Bank of Commerce: CARE revised ratings of several bonds.
Jubilant Life Sciences: Company's material wholly-owned subsidiary, Jubilant Pharma (JPL) proposes to organise exploratory meetings with one or more international institutional investors between September 25 and November 30 in connection with JPL's proposed plan of fund raising.
ICICI Bank: Committee of Executive Directors of the bank approved the proposed offshore borrowings by way of issuances of debt instruments and certificate of deposits by the Bank subject to business requirements/ market conditions.
Yes Bank clarifies on news report "RBI slaps Yes Bank with Rs 38 crore over GST Violations': Heading used by news agency is inappropriate and RBI has not imposed any fines/ penalties over GST violations on the bank. In addition, there has been no written communication in the form of a show-cause notice, or otherwise, provided to bank on the matter by the authorities.
Avenue Supermarts: CRISIL reaffirmed its rating of A1+ on commercial paper of Rs 200 crore (limit enhanced from Rs 70 crore).
Dilip Buildcon: Company declared as L-1 bidder for a new EPC project 'Navnera Barrage (Dam) under Phase 1/A', valued at Rs 601.02 crore by the Water Resource Department, Kota, Rajasthan.
Infosys: Public Services and Procurement Canada selects Infosys public services to deliver its electronic procurement solution.
Dena Bank: Board approved proposed amalgamation of bank with Bank of Baroda & Vijaya Bank.
Moser Baer India: National Company Law Tribunal has allowed liquidation of company.
Himachal Futuristic Communications: Company received purchase orders for Rs 558.36 crore from Bharat Sanchar Nigam (BSNL) for PAN Indian Defence Communication Network.
DHFL: Brickwork Ratings India has validated its credit ratings for secured NCD worth Rs 29,000 crore, secured NCD worth Rs 12,000 crore and fixed deposit Rs 12,000 crore at AAA/Stable, AAA/Stable and FAAA/Stable respectively.
Shalby: ICRA upgraded the long-term ratings to A from A- on the term loans and fund based facilities aggregating to Rs 103.02 crore and revised outlook on the long-term rating to Positive from Stable.
Majesco: CCMSI selects Majesco Policy and Billing for P&C on Majesco Cloudlnsurer and Majesco Insurance Data & Analytics Platform.
Poddar Housing and Development, and Autoline Industries: Subsidiary Poddar Habitat Private Limited executed agreement to acquire a land admeasuring 102.50 acers in Chakan, Pune along with trunk infrastructure facilities, on a deferred payment terms from Autoline Industrial Parks Limited (subsidiary of Autoline Industries Limited).
Jost's Engineering: Company has paid Rs 40 lakh towards part payment of share application money for purchase of equity shares in the proposed right issue of MHE Rentals India Private Limited (company's subsidiary).
Sadhana Nitrochem: Board approved sub-division of a share of Rs 10 into two equity shares of Rs 5 each.
2 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For September 25, Adani Enterprises and Adani Power are present in this list.
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