Nagaraj Shetti of HDFC Securities feels having not showed any decent upside recovery from near the support, there is a possibility of more weakness in the next session.
The sell-off in equity markets continued for the fourth consecutive session on February 26 as bears stayed in control. Concerns over the widespread impact of coronavirus on the global economy dented sentiment.
Investors also looked cautious ahead of the December quarter GDP data on Friday as well the February F&O expiry on Thursday.
The BSE Sensex fell below the psychological 40,000-mark, down 392.24 points at 39,888.96, taking the total four-day loss to over 1,400 points.
The Nifty 50 closed below the 200-day simple moving average (which was placed at 11,685), declining 119.40 points or 1.01 percent to 11,678.50, forming a bearish candle on daily charts.
The market breadth remained in favour of bears as about two shares declined for every share rising on the BSE.
Experts feel the market may remain volatile in the near term given the F&O expiry and spread of coronavirus outside China. The 200-day SMA would be a crucial level to watch out for.
"At the current juncture, Nifty is hovering around its key cluster and 200 SMA on a daily scale. However, till the time Nifty holds below its immediate resistance of 11,800-mark, bears will have an upper hand on the market and we may see a further correction towards 11,615-11,500 levels," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services told Moneycontrol.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities also feels having not showed any decent upside recovery from near the support, there is a possibility of more weakness in the next session. "The Nifty is expected to show upside bounce from near 11,600-11,550 levels in the next few sessions."
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 11,617.67, followed by 11,556.83. If the index continues moving up, key resistance levels to watch out for are 11,761.27 and 11,844.03.
Nifty Bank
Nifty Bank fell 0.41 percent to close at 30,306.80. The important pivot level, which will act as crucial support for the index, is placed at 30,120.64, followed by 29,934.47. On the upside, key resistance levels are placed at 30,504.14 and 30,701.47.
Call options data
Maximum Call open interest (OI) of 47.40 lakh contracts was seen at the 12,000 strike price. It will act as a crucial resistance level in the February series.
This is followed by 11,900 strike price, which holds 35.24 lakh contracts in open interest, and 11,800, which has accumulated 31.08 lakh contracts in open interest.
Significant call writing was seen at the 11,800 strike price, which added 13.87 lakh contracts, followed by 11,700 strike price that added 12.89 lakh contracts and 11,600 strike price, which added 1.27 lakh contracts.
Call unwinding was witnessed at 12,200 strike price, which shed 15.29 lakh contracts, followed by 12,100 which shed 8.34 lakh contracts and 12,300 strike, which shed 7.06 lakh contracts.
Put options data
Maximum Put open interest of 26.72 lakh contracts was seen at 11,600 strike price, which will act as crucial support in the February series.
This is followed by 11,500 strike price, which holds 23.91 lakh contracts in open interest, and 11,300 strike price, which has accumulated 12.71 lakh contracts in open interest.
Put writing was seen at the 11,600 strike price, which added 4 lakh contracts, followed by 11,500 strike, which added 2.15 lakh contracts.
Put unwinding was seen at 11,800 strike price, which shed 15.93 lakh contracts, followed by 11,900 strike price which shed 6.45 lakh contracts and 11,700 strike, which shed 4.03 lakh contracts.
Stocks with a high delivery percentage
A high delivery percentage suggests that investors are showing interest in these stocks.
7 stocks saw long build-up
Based on open interest (OI) future percentage, here are the top 7 stocks in which long build-up was seen.
72 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-up
An 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.
12 stocks witnessed short-covering
A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on open interest (OI) future percentage, here are the top 10 stocks in which short-covering was seen.
Bulk deals
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Analysts and Board Meetings
Chalet Hotels: Company's officials will meet Fidelity International and HDFC Standard Life Insurance Company on February 27.
Finolex Industries: Analyst/Investors meet arranged on February 27 and 28.
Kirloskar Oil Engines: Company to consider the declaration of interim dividend, if any, on March 6.
Aster DM Healthcare: Meeting is scheduled to held on February 27 in Dubai with Thornburg Asset Management.
Praj Industries: Company to consider the declaration of interim dividend on March 5.
Stocks in the news
HUL: NCLT approved Scheme Of Amalgamation and agreement between GSK Consumer Health and HUL.
DB Corp: Promoter created pledge on 20.43 lakh shares (1.17 percent equity) on February 24.
RITES: Government to sell up to 5 percent stake in the company via OFS, floor price set at Rs 298 per share.
Thomas Cook: Company to buyback 2.61 crore shares at Rs 57.50 per share.
Container Corporation of India: Service agreement signed between CONCOR and Joint Stock Company, Russian Railways Logistics.
CCL Products: Company declared second interim dividend of Rs 1.50 and special dividend of Rs 1.50 per share.
City Union Bank: Bank has inaugurated 3 new branches at Saligramam, Noida & Tirukalukundram on February 26.
Gravita India: Step-down subsidiary Gravita Cameroon closed itself due to operational losses.
Carborundum Universal: Company declared an interim dividend of Rs 2.75 per share.
Mahanagar Gas: Company declared an interim dividend of Rs 9.50 per share.
CreditAccess Grameen: RBI granted it's no objection to the acquisition and to the consequent changes in the control and directors of MMFL.
PTL Enterprises: Company declared an interim dividend of Rs 2.50 per share.
InterGlobe Aviation: IndiGo CEO strongly denied any allegations of wrongdoing or avoidance of processes - CNBC-TV18.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 3,336.6 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 2,785.67 crore in the Indian equity market on February 26, provisional data available on the NSE showed.
Fund flow
Stocks under F&O ban on NSE
Yes Bank is under the F&O ban for February 27. 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.Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.
