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Technical & Derivative
s Report
June 01, 2020
Nifty
look
-
(
19297
)
During the last week, Bank Nifty took support around 17200 and
then triggered a smart bounce back. Bank Nifty outperformed
benchmark index and ended with gains of around 11.68% tad
below 19300 levels.
At the start of the week, we mentioned a positive divergence in
RSI smoothened in the hourly chart of Bank Nifty and this was
followed by broadbased buying in the banking stocks. In no time
the bank nifty has bounced from the levels of 17200 to 19300 and
the current momentum is strongly gripped by bulls. We expect the
recent bounce to continue in this week and one should maintain
a positive bias by having a stock specific long approach. As far as
levels are concerned, immediate resistance is placed around
20000 and 20123 whereas support is placed around 18800 and
18710 levels.
Key Levels
Support 1 – 18800 Resistance 1 – 20000
Support 2 – 18710 Resistance 2 – 20123
Exhibit 1: Nifty Daily Chart
Sensex (32424) / Nifty (9580)
Although the week started on a sluggish note after an extended
weekend, our markets saw good buying interest throughout the
remaining part of the week. Till last week, we were considerably
underperforming our global bourses, but with this smart rally, we
finally got coupled with global peers. Month on month, we might
see index ending lower but looking at the intra-month activity, the
Nifty managed to conclude the May month at the highest of the
month (on a closing basis).
Going by the famous idiom ‘all’s well that ends well’, the bulls
must be a bit relieved now. Fortunately, at the start of the week,
we carried our bullish inclination after observing a positive
divergence in RSI Smoothened in the hourly chart of BankNifty
previous Friday. This anticipation played out well and with weakest
link (banking space) taking the charge, the Nifty got elevated
beyond 9500 before anyone could realise. Nifty has now reached
to our immediate target of 9450 - 9500, but the way charts are
shaped up, we expect the Nifty to test the higher end of the
downside gap area of 9532-9731 created on May 04, 2020 (or
may even head higher). On the flipside, 9450 followed by 9380
would now be seen as a sacrosanct support.
.
Exhibit 2: Nifty Bank Daily Chart
As we have just alluded, that the rally is clearly propelled by the
banking space and historically it’s proven, whenever the banking
conglomerates starts participating in any rally, it is considered to be
a robust one. Hence, traders should look to use declines to go long
and ideally the stock centric approach would fetch better trading
opportunities as well as the higher potential gains.
Key Levels
Support 1 – 9450 Resistance 1 – 9650
Support 2 – 9380 Resistance 2 – 9731
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Technical & Derivatives Report
June 01
, 2020
Nifty Vs OI
8400
8600
8800
9000
9200
9400
9600
9800
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
5/8 5/12 5/14 5/18 5/20 5/22 5/27 5/29
(`000)
Openinterest Nifty
V
iew
s
During the last week, Nifty took support near the 9000
mark and rallied higher to end with gains of around 6%
agains the previous week close.
FIIs were net buyers in the cash market segment to the
tune of Rs. 1461 crores. In index futures, they sold worth
631 crores with decrease in open interest indicating
longs unwinding on Friday.
The upmove seen during the last week was due to a
combination of short covering and fresh long
formation. The Banking space mainly led the markets on
back of short covering. The rollover in Nifty is at 75.67%
while in Bank Nifty it is at 81.13%. FII’s have squared off
much of their index futures short positions during
expiry and their ‘Long Short Ratio’ is now at 60%. As per
the options data, the immediate support for Nifty
futures is placed around 9200. As of now, traders are
advised to use declines as buying opportunities and
trade with a positive bias. It is also advisable to keep a
tab on the Nifty Put-Call Ratio which is now at 1.61.
Usually PCR value around 1.80 is considered as
overbought zone where traders should then prefer to
book profits on long positions.
C
o
mme
n
t
s
The Nifty futures open interest has increasead by 3.87%
Bank Nifty futures open interest has increased by 7.99%
as market closed at 9580.30 levels.
The Nifty June future closed with a discount of 86.2 point
against a discount of 62.15 point in last trading session.
The July series closed at a discount of 94.1 points.
The INDIA VIX has increased from 30.01 to 30.22
At the same time, the PCR-OI of Nifty increased from 1.55
to 1.61.
Few of the liquid counters where we have seen high cost
of carry are IDEA, NCC, GMRINFRA, PNB, and
ADANIPOWER.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
SBILIFE 3909750 67.03 768.65 2.19
IGL 6043125 53.83 472.10 -0.40
TATACONSUM 10656900 51.57 366.90 -2.53
JUSTDIAL 1925000 33.50 392.55 2.94
TORNTPHARM 1406000 31.96 2362.55 -0.57
JUBLFOOD 2935000 31.67 1656.60 -3.71
MINDTREE 830400 29.75 894.60 -0.63
BATAINDIA 1862850 24.84 1325.60 1.45
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CUMMINSIND 1203900 -15.66 376.35 1.66
CHOLAFIN 5985000 -10.00 141.70 2.21
COLPAL 1911000 -9.09 1391.60 3.37
LUPIN 9052750 -7.27 869.80 -2.22
MARUTI 2831400 -6.91 5610.80 1.06
TATACHEM 2039400 -5.90 306.45 -3.36
INFY 50569200 -5.50 691.00 -3.38
LT 11697075 -5.39 932.25 1.80
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.61 0.74
BANKNIFTY 1.37 0.76
RELIANCE 0.74 0.60
ICICIBANK 0.75 0.68
INFY 0.74 0.65
Historical Volatility
SCRIP HV
PVR 99.78
IBULHSGFIN 133.16
JINDALSTEL 113.33
EQUITAS 124.79
CHOLAFIN 136.63
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Technical & Derivatives Report
June 01
, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (June Series) are given as an information and not as a recommendation.
Nifty Spot =
9580.30
FII Statistics for May 29, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
5303.97
5935.11
(631.14) 108996
6846.33
(10.01)
INDEX
OPTIONS
136229.62
136024.68
204.94
530201
34452.38
17.19
STOCK
FUTURES
21483.15
20108.71
1374.44
1541830
77980.20
1.13
STOCK
OPTIONS
2763.36
2827.75
(64.39) 35759
2001.97
87.33
Total 165780.10
164896.25
883.85
2216786
121280.88
4.70
Turnover on May 29, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 6,48,810 32407.26 -33.99
Index Options 1,25,24,452
6,38,173.86 -76.71
Stock Futures 11,80,819 61432.97 -34.65
Stock Options 7,18,706 40000.15 -13.68
Total 1,50,72,787
7,72,014.24 -73.65
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 9500 277.35
51.55 48.45 9551.55
Sell 9600 225.80
Buy 9500 277.35
99.30 100.70 9599.30
Sell 9700 178.05
Buy 9600 225.80
47.75 52.25 9647.75
Sell 9700 178.05
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 9500 285.75
41.40 58.60 9458.60
Sell 9400 244.35
Buy 9500 285.75
78.15 121.85 9421.85
Sell 9300 207.60
Buy 9400 244.35
36.75 63.25 9363.25
Sell 9300 207.60
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
9000 9100 9200 9300 9400 9500 9600 9700 9800 9900 10000 10100 10200 10300
Call Put
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Technical & Derivatives Report
June 01
, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
317
321
325
329
333
ASIANPAINT 1,606 1,644
1,672
1,710
1,738
AXISBANK
369
377
383
391
397
BAJAJ-AUTO 2,531 2,621
2,681
2,771
2,831
BAJFINANCE 1,853 1,903
1,942
1,992
2,031
BAJAJFINSV 4,118 4,261
4,345
4,489
4,573
BPCL
318
330
339
351
360
BHARTIARTL
533
543
553
563
574
INFRATEL
214
222
232
240
250
BRITANNIA 3,235 3,307
3,362
3,434
3,489
CIPLA
623
636
643
656
663
COALINDIA
128
135
139
145
149
DRREDDY 3,789 3,930
4,010
4,152
4,232
EICHERMOT 15,253
15,901
16,449
17,097
17,645
GAIL
86
89
91
95
97
GRASIM
564
577
589
602
614
HCLTECH
529
540
547
558
566
HDFCBANK
912
932
943
963
975
HDFC 1,557 1,608
1,642
1,693
1,728
HEROMOTOCO
2,192
2,277
2,334
2,419
2,476
HINDALCO
132
135
138
142
145
HINDUNILVR 1,974 2,016
2,042
2,084
2,110
ICICIBANK
314
323
329
338
343
IOC
74
79
82
86
89
INDUSINDBK
363
378
389
405
416
INFY
663
677
689
703
715
ITC
186
192
195
201
204
JSW STEEL
178
181
183
186
189
KOTAKBANK 1,188 1,206
1,218
1,236
1,248
LT
874
903
920
950
967
M&M
420
428
439
447
458
MARUTI 5,259 5,435
5,551
5,727
5,843
NESTLEIND 16,493
17,017
17,308
17,832
18,124
NTPC
92
95
97
100
102
ONGC
75
79
81
86
88
POWERGRID
156
157
158
159
160
RELIANCE 1,444 1,454
1,463
1,473
1,482
SHREECEM 20,398
20,628
20,838
21,068
21,279
SBIN
153
157
159
164
166
SUNPHARMA
448
461
471
485
495
TCS 1,939 1,956
1,979
1,996
2,019
TATAMOTORS
84
85
86
88
89
TATASTEEL
284
290
293
299
302
TECHM
519
525
530
536
541
TITAN
865
877
888
900
911
ULTRACEMCO 3,735 3,820
3,880
3,965
4,025
UPL
373
390
405
421
436
VEDANTA
88
90
91
94
95
WIPRO
189
201
208
220
227
ZEEL
170
177
182
189
194
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Technical & Derivatives Report
June 01
, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical & Derivatives Queries E-mail: [email protected]angelbroking.com
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst - Technical & Derivatives sameet.cha[email protected]g.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com