The Nifty closed at 10,710.45 on Tuesday. According to Pivot charts, its key support is placed at 10,677.97, followed by 10,645.43.
The Nifty failed to reclaim 10,800 but managed to hold on to its crucial support placed at 10,709-10,700 and hit a 2-week low on Tuesday.
The index made a Bearish Belt Hold pattern for the second day in a row.
A ‘Bearish Belt Hold’ pattern is formed when the opening price becomes the intraday high and the index declines throughout the trading session, making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.
On Tuesday, the Nifty opened at 10,789.45, which was also the intraday high. The bears took control of the market in morning trade and pushed the index below its crucial support placed at its 5-day exponential moving average (EMA), 13-day EMA, and 20-day EMA.
Investors are advised to remain cautious and use rallies to short the index, with a stop above 10,830. As long as the Nifty is trading below 10,930, chances of correction will remain.
The Bank Nifty continued its formation of lower highs and lower lows for the fourth session on the trot. It formed a Bearish candle on the daily chart and resistances are gradually shifting lower.
As long as it doesn’t negate this formation and holds below 26,500, the weakness could take it to 26,100 or even lower, suggest experts.
“The Nifty registered a Bearish Belt Hold formation as it set the bearish tone from the word go which also became the highest point of the day. In this process it almost tested the lower end of the bullish gap zone between 10722 – 10698 registered on 7th of June,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
“If the index fills this gap and settles below 10,698 levels then it may initially head to test its 50-Day EMA, whose value is placed around 10,646 levels from where it has bounced back in the past,” he said.
Mohammad added that if this support is breached, it will confirm more downsides for the index, with a target placed below 10,417. It looks prudent for traders to use rallies towards 10,770 to create fresh shorts with a stop loss of 10,830.
Here are 15 data points to help you spot profitable trades:
Key Nifty support and resistanceÂ
The Nifty closed at 10,710.45 on Tuesday. According to Pivot charts, its key support is placed at 10,677.97, followed by 10,645.43. If the index starts moving upward, key resistance levels to watch out for are 10,766.27 and 10,822.03.
Bank Nifty
The Nifty Bank index closed at 26,265.75. The important pivot level, which will act as a crucial support for the index, is placed at 26,177.7, followed by 26,089.6. Key resistance levels are placed at 26,401.0, followed by 26,536.2.
Call options data
On the options front, maximum call open interest (OI) of 53.39 lakh contracts was for the 11,000 strike price, followed by the 10,800 strike price, which now holds 43 lakh contracts in open interest, and 10,900 strike price, which has accumulated 37.3 lakh contracts.
Call writing was seen at strike prices 10,800 (7.5 lakh contracts added), followed by 11,000 (6.49 lakh contracts added) and 10,700 (4.97 lakh contracts added).
Call unwinding was seen at the strike price 11,200 which saw shedding of 2.25 lakh contracts in open interest, followed by 11,300 (1.6 lakh contracts shed) and 10,600 (0.45 lakh contracts shed).
Put options data
Maximum put OI of 48 lakh contracts was seen at strike price 10,700, which will act as a crucial base for the index, followed by 10,600, which has accumulated 45.77 lakh contracts, and 10,500, which now holds 31.7 lakh contracts in open interest.
Put writing was seen at strike prices of 10,600 (3.18 lakh contracts added), followed by 10,200 (2.58 lakh contracts added), 10,500 (1.86 lakh contracts added) and 10,300 (0.99 lakh contracts added).
Put unwinding was seen at the strike price of 10,800, which saw shedding of 10.5 lakh contracts in open interest, followed by 10,700 (1.6 lakh contracts shed).
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,324.92 crore, while domestic institutional investors bought shares worth Rs 653.68 crore in the Indian equity market on Tuesday, as per provisional data available on the National Stock Exchange.
Bulk deals:
Suumaya Lifestyle: Harshil Khyani bought 1,28,000 shares at Rs 18.20 per share
Vaibhav Gems: Malabar India Fund bought 2,34,732 shares at Rs 699.98 per share
Analyst or board meet/briefings:
Sharda Cropchem: Meeting is scheduled to be held on June 25 to further consider fund raising by way of issuance of equity shares or equity linked securities
Brigade Enterprises: A meeting is scheduled on June 22, 2018 to consider proposal of fund raising.
Stocks in the news:
Cipla has received final approval for its abbreviated new drug application for Efavirenz tablets 600mg from the USFDA. It is indicated in combination with other antiretroviral agents for the treatment of human immunodeficiency virus type 1 infection in adults.
Infosys expands footprint in france by establishing state-of-the-art digital center of excellence in Marseille.
Wheels India’s board, on June 22, may consider issue of bonus shares.
Kansai Nerolac Paints has entered into a share purchase agreement to acquire 55 percent of the paid-up equity of RAK Paints, Bangladesh, for a total consideration of Bangladeshi Taka (BDT) 57.26 crore (approximately Rs 45.81 crore).
MPS invested in the right issue of MPS Interactive Systems and has allotted equity and preference shares at par aggregating to Rs 43.99 crore. Post the allotment of shares, MPS Interactive Systems has now become a wholly-owned material subsidiary of MPS.
IndoStar Capital Finance subscribed to 3.5 crore equity shares issued by subsidiary IndoStar Home Finance on right issue basis at par. Rs 17.5 crore was paid towards application money and balance amount will be paid in one or more tranches.
Dhanvarsha Finvest: The Reserve Bank of India has granted prior approval for change in 26 percent shareholding and change of management of the company.
3 stocks under ban period on the NSE
Securities in ban period for the next day’s trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit. For June 20, DHFL, Infibeam and Jet Airways are present in the F&O ban list.
