www.angelbroking.com
Technical & Derivatives
Report
September 01, 2020
Nifty Bank Outlook - (23754)
On the back of positive global cues, the Bank Nifty opened gap up
yesterday and surpassed the 25000 mark. However, the index started
correcting after a few minutes of positive traction and it plunged to
correct more than 1800 points from the day's high and end with a loss
of over 3 percent from Friday's close. In the last few sessions, Bank
Nifty has taken the leadership to drive the markets higher and has
rallied sharply to cover up its recent underperformance. This
continued yesterday in the opening ticks as well, but there was a major
hurdle at its '200 DMA' which it hadn't tested in the last six months.
The resistance played its role and then we witnessed a sharp sell off
from the highs along with the broader markets. Technically, this large
body candle has led to formation of a ' Dark Cloud Cover' candlestick
pattern which indicates a shift in momentum to the downside. Thus,
from a near term perspective, traders should stay light on positions
and use pullback move as an opportunity to exit from long positions.
The immediate hurdles are seen around 24125 and 24500 whereas
supports are placed around 23210 and 23000.
Key Levels
Support 1 – 23210 Resistance 1 – 24125
Support 2 – 23000 Resistance 2 – 24500
Exhibit 1: Nifty Daily Chart
Se
nsex
(
38628)
/ Nifty
(
11387
)
Yesterday morning, the global set up was just ideal for our markets to
have a head-start for the new trading week. At the opening, we started
with a decent bump up to mark a new six-month high. Subsequently,
for an hour or so, markets remained in this bullish zone and post this, it
just turned out to be one of the terrible days in the recent past. The sell
off mainly triggered after the news of India-China clash once again
taking place at the border. This resulted into a massive liquidation in our
markets by continuing sell off throughout the remaining part of the day
to eventually conclude with a massive cut of 260 points from the Friday’s
close (and more than 400 points from morning high).
The way the market plunged yesterday post the cheerful opening, it
finally gave some justice to our recent cautious stance. Since last week
or so, we were sounding a bit contradictory and have been advocating
booking profits continuously in the rally. It might have sounded a bit
repetitive but this is how the market surprises us and hence, it’s better
to be proactive at times; because when the market takes a U-turn, it
happens all of a sudden and does not give much time to react to the
development. Yes, nobody can predict what will trigger the selloff; but
the velocity at which it falls, it can be very intimidating for momentum
traders at least. So. It’s all advisable for traders to take some money off
the table when the market turns euphoric. Now with yesterday’s
development, 11750-11800 has now become a sturdy wall and we do
not see it breaking upwards immediately. Before this, in case if Nifty
gives a rebound towards 11500-11600, one should use it as an exit
strategy for existing longs. On the downside, Nifty has now reached a
key support zone of 11300-11250. The moment we breach this (which
looks on cards), get ready for an extended correction towards 11100-
11000 in days to come.
Exhibit 2: Nifty Bank Daily Chart
Yesterday, barring IT, no other sector was spared; in fact, the recent
driver, Banking has taken a solid toll after precisely testing it’s ‘200-SMA’
early in the morning. The major casualties were seen in the broader
market, who were enjoying a strong Bull Run since the last few weeks.
We reiterate that we were cautious because the market had become
complacent and when things become hunky dory, the market tends to
give some reality checks soon and this is exactly what we witnessed. By
saying all this, we are not all expecting a similar kind of sell off (no way
closer) that we witnessed in March. In fact, if the correction extends, it
should be considered a healthy one with a longer run and would provide
better opportunities for those who are sitting on the sidelines.
.Key Levels
Support 1 – 11300 Resistance 1 – 11500
Support 2 – 11250 Resistance 2 – 11600
www.angelbroking.com
Technical & Derivatives Report
September 01, 2020
Nifty Vs OI
10900
11000
11100
11200
11300
11400
11500
11600
11700
10,000
10,500
11,000
11,500
12,000
12,500
13,000
13,500
14,000
8/10 8/12 8/14 8/18 8/20 8/24 8/26 8/28
(`000)
Openinterest Nifty
View
s
The week started on positive note and the bias
remained positive for the first hour however all of
sudden sharp selloff was seen pulling Index lower to
end with loss of 2.23% at 11387.50.
FIIs were net sellers in the cash market segment to the
tune of Rs. 3395 crores (includes MSCI deal). In index
futures, they sold worth 4068 crores with increase in
open interest indicating combination of short formation
and long unwinding in yesterday’s session
.
Although the Nifty opened on a positive note, it
corrected sharply during the day due to long
unwinding. The open interest in Nifty decreased by over
7 percent indicating profit booking on long positions.
FII's unwound their long positions in the index futures
segment and formed short positions too. Due to
this,their 'Long Short Ratio' which was over 77 percent
on Friday, has declined to 58 percent.The INDIAVIX
increased by 25 percent to level around 23. In options
segment, open interest addition was seen in call options
of 11400 and above strikes whereas 11600-11500 put
options saw unwinding of positions. The above data
indicates change in stance by the stronger hands as the
market corrected. On pullback move, 11600-11700
could now be the immediate resistance for near term.
Hence, traders are advised to stay light on positions and
look to lighten up positions on any pullback move.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 7.39%
Bank Nifty futures open interest has decreased by 1.71%
as market closed at 11387.50 levels.
The Nifty September future closed with a premium of
14.45 point against a premium of 27.65 point in last
trading session. The October series closed at a premium
of 43 point.
The INDIA VIX has increased from 18.34 to 22.83.
At the same time, the PCR-OI of Nifty decreased from
1.64 to 1.17.
Few of the liquid counters where we have seen high cost
of carry are ASHOKLEY, NTPC, BALKRISIND, PFC AND
EICHERMOT.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BHARTIARTL 131185923 24.55 513.10 -1.58
ASHOKLEY 27207000 23.14 67.65 -3.81
ESCORTS 2758800 21.28 1087.55 -4.29
AMARAJABAT 1232000 19.84 728.00 -2.93
IDFCFIRSTB 124488000 11.58 32.00 -6.07
GODREJPROP 909350 11.03 913.25 1.38
PNB 52934000 9.15 35.05 -5.64
HINDALCO 21779500 8.83 185.25 -4.39
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BANDHANBNK 21232800 -20.94 305.80 -4.49
RBLBANK 16764800 -20.17 195.95 -7.21
BANKBARODA 59942000 -17.28 48.95 -5.69
UPL 8684000 -12.49 505.95 -2.63
INDUSINDBK 28380800 -11.37 630.20 -5.61
IDEA 459200000 -9.52 10.20 0.00
MFSL 1691300 -9.27 589.20 -1.87
CANBK 12645000 -8.63 107.50 -6.64
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.17 1.08
BANKNIFTY 0.73 1.10
RELIANCE 0.59 0.50
ICICIBANK 0.59 0.64
INFY 0.46 0.47
Historical Volatility
SCRIP HV
BOSCHLTD 51.45
NMDC 60.30
GMRINFRA 55.58
PVR 64.20
APOLLOTYRE 52.49
www.angelbroking.com
Technical & Derivatives Report
September 01, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (September Series) are given as an information and not as a recommendation.
Nifty Spot =
11387.50
FII Statistics for August 31, 2020
Detail Buy
Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
7528.42
11596.29
(4067.87) 139247
11127.04
1.98
INDEX
OPTIONS
308568.97
308785.44
(216.47) 734518
57972.89
10.95
STOCK
FUTURES
24825.62
26169.73
(1344.11) 1210558
85579.18
(0.97)
STOCK
OPTIONS
7892.34
7896.39
(4.05) 61033
4275.27
33.05
Total 348815.35
354447.85
(5632.50) 2145356
158954.38
3.80
Turnover on August 31, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 8,39,830 59296.00 71.54
Index Options
2,91,80,034
20,94,649.77
72.20
Stock Futures 12,09,828
87980.48 28.93
Stock Options
14,03,657
1,06,311.96 27.84
Total 3,26,33,349
23,48,238.21
67.45
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11400 251.80
52.00 48.00 11452.00
Sell 11500 199.80
Buy 11400 251.80
96.85 103.15 11496.85
Sell 11600 154.95
Buy 11500 199.80
44.85 55.15 11544.85
Sell 11600 154.95
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11400 249.70
39.95 60.05 11360.05
Sell 11300 209.75
Buy 11400 249.70
81.45 118.55 11318.55
Sell 11200 168.25
Buy 11300 209.75
41.50 58.50 11258.50
Sell 11200 168.25
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000
Call Put
www.angelbroking.com
Technical & Derivatives Report
September 01, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
336
346
362
372
388
ASIANPAINT 1,819 1,859
1,921
1,962
2,024
AXISBANK
458
477
506
525
553
BAJAJ-AUTO 2,898 2,932
2,981
3,015
3,064
BAJFINANCE 3,283 3,385
3,568
3,
670
3,852
BAJAJFINSV 5,797 5,994
6,332
6,529
6,867
BPCL
389
399
412
422
436
BHARTIARTL
501
507
515
521
528
INFRATEL
184
191
201
209
219
BRITANNIA 3,613 3,670
3,740
3,797
3,867
CIPLA
674
694
725
744
775
COALINDIA
129
131
137
140
145
DRREDDY 4,094 4,179
4,302
4,388
4,510
EICHERMOT 1,975 2,034
2,131
2,190
2,288
GAIL
91
93
97
100
104
GRASIM
645
660
685
700
726
HCLTECH
663
679
702
718
741
HDFCBANK 1,074 1,095
1,122
1,143
1,170
HDFC
551
563
579
591
607
HEROMO
TOCO
1,726
1,779
1,851
1,904
1,975
HINDALCO 2,898 2,952
3,020
3,075
3,143
HINDUNILVR
176
181
189
193
202
ICICIBANK 2,062 2,090
2,129
2,156
2,195
IOC
367
381
401
415
436
INDUSINDBK
81
84
88
90
94
INFY
563
597
654
688
746
ITC 895
912
931
948
967
JSW STEEL
184
188
193
197
202
KOTAKBANK
260
265
273
278
287
LT 1,298 1,350
1,426
1,477
1,553
M&M
905
925
960
980
1,015
MARUTI
578
593
617
631
655
NESTLEIND 6,561 6,700
6,930
7,070
7,300
NTPC 15,625
15,787
16,037
1
6,199
16,449
ONGC
91
94
98
101
105
POWERGRID
78
80
83
85
87
RELIANCE
173
176
181
184
188
SHREECEM 1,991 2,036
2,105
2,150
2,219
SBIN 19,074
19,679
20,614
21,219
22,154
SUNPHARMA
197
204
218
226
239
TCS
485
503
532
549
579
TATAMOTORS 2,206 2,231
2,254
2,280
2,302
TATASTEEL
133
138
143
148
153
TECHM
398
405
418
425
438
TITAN
707
724
749
766
792
ULTRACEMCO 1,046 1,073
1,113
1,140
1,180
UPL 3,754 3,829
3,958
4,032
4,161
VEDANTA
480
493
514
527
548
WIPRO 260
266
274
280
288
ZEEL
191
197
207
214
224
www.angelbroking.com
Technical & Derivatives Report
September 01, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical & Derivatives Queries E-mail: technic[email protected].com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration
number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for
accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed
public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits
and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
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