The market traded volatile with a negative bias for a major part of the session and closed in the red for the fifth straight session on July 1. Select banking and financials, IT and metal stocks pulled the market lower, while auto, FMCG and pharma stocks gained.
The BSE Sensex declined 164.11 points to 52,318.60, while the Nifty50 fell 41.50 points to 15,680 and formed a bearish candle on the daily charts.
“A reasonable negative candle was formed, that placed at the crucial support of 20day EMA on the daily chart around 15,680 levels. We also observe a formation overlapping negative candles over the last three sessions, which indicate rangebound action and sellonrise opportunity in the market,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
He says the formation of such patterns could eventually result in an upside breakout. “As of now, there is no early sign of any upside bounce from the lows,” he said.
He further said the Nifty continued to show choppy movement with negative bias and still there is no evidence of any upside bounce emerging from the lows. “The Nifty is currently placed at the important cluster support of 15,650 levels and a move below this area could result in slide down to 15,500 levels,” he added. The broader markets closed mixed as the Nifty Midcap 100 index declined 0.33 percent and Nifty Smallcap 100 index gained 0.66 percent.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of threemonth data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 15,646.17, followed by 15,612.33. If the index moves up, the key resistance levels to watch out for are 15,734.67 and 15,789.33.
Nifty Bank
The Nifty Bank declined 88.20 points to close at 34,684 on July 1. The important pivot level, which will act as crucial support for the index, is placed at 34,584.06, followed by 34,484.13. On the upside, key resistance levels are placed at 34,850.77 and 35,017.54 levels.
Call option data
Maximum Call open interest of 26.17 lakh contracts was seen at 16000 strike, which will act as a crucial resistance level in the July series.
This is followed by 16500 strike, which holds 16.48 lakh contracts, and 16400 strike, which has accumulated 14.70 lakh contracts.
Call writing was seen at 16000 strike, which added 2.13 lakh contracts, followed by 15700 strike which added 2.02 lakh contracts, and 16300 strike which added 1.44 lakh contracts.
Call unwinding was seen at 16500 strike, which shed 72,450 contracts, followed by 16200 strike which shed 62,800 contracts, and 16400 strike which shed 22,850 contracts.
My name is Mayank Bansal I have a keen interest in writing about the latest happenings in business and market. I am a news writer at review minute.