Shabbir Kayyumi of Narnolia Financial Advisors said a close below the strong support (10,740) will push prices lower towards 10,680 levels.
The market fell for fifth consecutive session and closed below 10,750 levels on the Nifty, dragged by Reliance Industries, HDFC Group and IT stocks on Thursday.
The 30-share BSE Sensex declined 157.89 points to 35,876.22 while the Nifty50 dropped 47.60 points to 10,746.05 amid consolidation and formed bearish candle on daily scale.
The index traded in a tight range of 10,760-10,730 levels throughout the day, with negative sentiments.
"Index trading above Thursday's high (10,792) will accelerate upmove taking it higher towards immediate resistance zone of 200 DMA placed around 10,850 levels," Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors told Moneycontrol.
However, a close below the strong support (10,740) will push prices lower towards 10,680 levels, he said.
The broader markets bucked the trend with the Nifty Midcap and Smallcap indices rising 0.6 percent each.
We have collated top 10 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,746 on February 14. According to Pivot charts, key support level is placed at 10712.3, followed by 10678.6. If the index starts moving upward, key resistance levels to watch out are 10786.2 and then 10826.4.
Nifty Bank
The Nifty Bank index closed at 26970.6 on February 14. The important Pivot level, which will act as crucial support for the index, is placed at 26849.14, followed by 26727.67. On the upside, key resistance levels are placed at 27061.04, followed by 27151.47.
Call Options Data
Maximum Call open interest (OI) of 30.31 lakh contracts was seen at the 10,900 strike price. This will act as a crucial resistance level for the February series.
This was followed by the 10,800 strike price, which now holds 30.26 lakh contracts in open interest, and 11,000 added 18.22 lakh contracts in open interest.
Meaningful Call writing was seen at 10,800, which added 23.55 lakh contracts and followed by 10,900 strike which added 8.63 lakh contracts.
There was hardly any Call unwinding seen.
Put Options data
Maximum Put open interest of 16.95 lakh contracts was seen at the 10,700 strike price. This will act as a crucial support level for the February series.
This was followed by the 10,600 strike price, which now holds 6.16 lakh contracts in open interest, and the 10,500 strike price, which accumulated 2.03 lakh contracts in open interest.
Significant Put writing was seen at the strike price of 10,700, which added 11.02 lakh contracts, followed by 10,600 strike which added 2.09 lakh contracts.
Put unwinding was seen at the strike price of 10,800, which shed 6.37 lakh contracts, followed by 10,900 strike which shed 2.96 lakh contracts and 11,000 strike which shed 0.61 lakh contracts.
FIIs & DIIs Data
Foreign Institutional Investors (FIIs) sold shares worth Rs 250.23 crore while Domestic Institutional Investors bought Rs 1,225.24 crore worth of shares in the Indian equity market on February 14, 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.
59 stocks saw a long buildup
70 stocks saw short covering
A decrease in open interest along with an increase in price mostly indicates short covering.
41 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.
29 stocks saw long unwinding
