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Technical & Derivatives Report
June 02, 2020
Nifty
Bank Out
-
(
19960
)
Bank Nifty index too opened with a gap up yesterday and rallied
higher to surpass the 20000 mark. Stocks from the banking and
financial sector witnessed good momentum throughout the
session which led to gains of almost three and a half percent on
the index.
The recent outperforming banking space has led the markets
higher in last few sessions. From the swing low of 17105, the index
has rallied about 3000 points in mere six trading sessions. The
index has retraced its previous correction by 61.8% and has ended
tad below the 20000 mark. The index is likely to find support in
the range of 19650-19350 on any decline and on the higher side,
it could continue the momentum upto 20500-20900. Hence, we
continue to advise traders to trade with a positive bias and look
for opportunities in intraday declines.
.
Key Levels
Support 1 – 19650 Resistance 1 – 20500
Support 2 – 19350 Resistance 2 – 20900
Exhibit 1: Nifty Daily Chart
Sensex (33303) / Nifty (9826)
In last three trading sessions, our markets have taken a complete
u-turn from sub-9000 levels. Within no time, we were significantly
off lows to reclaim 9500 on a weekly basis. The foundation was
laid last week, and now easing lockdown regulations on the
domestic as well as global front, resulted into a massive bump up
at the opening to kickstart the new trading week. During the initial
half, market extended the lead but in the latter half some profit
booking was witnessed at higher levels. Despite all, Nifty ended
the session convincingly above the 9800 mark.
It was certainly a great start for the new trading week as well as
the June month. Last month, there was a gap down opening at the
inaugural day and yesterday precisely that downside gap area was
filled to kick off the new month. Technically speaking, any
significant gap which is filled by another gap is considered to be
a notable development. Throughout last month, the lower end of
the gap i.e. 9600-9550 acted as a sturdy wall and this time the
same zone, is now likely to be seen as a sheet anchor (till the time
it remains unfilled). We have now reached 9900-9950, which
coincides with the ‘89 EMA’ on daily chart and is considered to be
a decent resistance. But the way charts are shaped up, the
possibility of surpassing it and heading towards 10000-10200
cannot be ruled out.
Exhibit 2: Nifty Bank Daily Chart
For the day, 9750 followed by 9680 can be seen as immediate
support. Now going ahead, we may see individual stocks giving
better trading opportunities, because the way midcap index is
positioned, stocks from the broader market would see some decent
relief rally. It would be important to identify apt themes and then
potential movers who within the respective themes.
Key Levels
Support 1 – 9750 Resistance 1 – 9900
Support 2 – 9680 Resistance 2 – 9950
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Technical & Derivatives Report
June 02, 2020
Nifty Vs OI
8200
8400
8600
8800
9000
9200
9400
9600
9800
10000
,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
ie
w
s
The week started on a strong positive note as Nifty
ended with gains of 2.57% at 9826.15.
FIIs were net buyers in the cash market segment to the
tune of Rs. 1575 crores. In index futures, they bought
worth 136 crores with an increase in open interest by
over 6% indicating some long as well as short formation
in yesterday’s session.
Post the gap up opening, the indices rallied higher in
yesterday's session wherein fresh long formation was
seen in the Nifty whereas short covering was witnessed
in the BankNifty. As the market inched higher, the call
writers ran for cover and unwinded their short
positions whereas fresh put writing was seen in 9800-
9500 strikes. Thus, the biasness is likely to remain
positive in the near term and hence, traders are
advised to use declines as buying opportunity. The
immediate support for Nifty is in the range of 9800-
9700 whereas resistance is seen around 10000 mark.
C
o
mme
n
t
s
The Nifty futures open interest has increasead by 5.10%
Bank Nifty futures open interest has decreased by 4.16%
as market closed at 9826.15 levels.
The Nifty June future closed with a discount of 35.15
point against a discount of 86.2 point in last trading
session. The July series closed at a discount of 39.15
points.
The INDIA VIX has increased from 30.22 to 30.74
At the same time, the PCR-OI of Nifty decreased from
1.61 to 1.53.
Few of the liquid counters where we have seen high cost
of carry are IDEA, NCC, PNB, ONGC, and BHEL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CANBK 10895000 23.81 91.95 10.81
PNB 65873100 16.81 29.20 9.51
AMARAJABAT 1840000 15.88 652.45 6.67
RBLBANK 18603600 15.46 129.85 8.15
VOLTAS 4196000 14.64 539.80 12.89
APOLLOTYRE 8896000 14.32 104.75 8.05
NCC 31392000 13.46 25.60 11.71
UBL 1129100 13.35 965.20 1.57
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
MUTHOOTFIN 1986750 -12.72 885.40 2.72
RAMCOCEM 643400 -10.57 617.45 2.43
L&TFH 21528000 -9.36 57.40 5.81
M&MFIN 16940300 -9.32 145.40 3.61
HAVELLS 5961000 -9.27 540.35 8.53
MOTHERSUMI 23271000 -8.60 96.60 3.26
IOC 42887100 -8.23 86.15 5.13
TORNTPOWER 1812000 -7.93 321.20 1.79
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.53 0.72
BANKNIFTY 1.13 0.71
RELIANCE 0.80 0.45
ICICIBANK 0.74 0.59
INFY 0.75 0.55
Historical Volatility
SCRIP HV
BIOCON 78.00
TATACONSUM 62.33
SRF 60.79
PAGEIND 50.32
ADANIENT 64.83
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Technical & Derivatives Report
June 02, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (June Series) are given as an information and not as a recommendation.
Nifty
Spot =
9826.15
FII Statistics for June 01, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
6461.35
6325.34
136.01
115822
7534.07
6.26
INDEX
OPTIONS
174305.53
174531.63
(226.10) 596623
39017.54
12.53
STOCK
FUTURES
18589.03
18940.15
(351.12) 1549541
80811.31
0.50
STOCK
OPTIONS
4053.02
4193.39
(140.37) 48350
2802.46
35.21
Total 203408.93
203990.51
(581.58) 2310336
130165.38
4.22
Turnover on June 01, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 6,34,228 34163.25 5.42
Index Options 1,72,15,367
9,49,943.71 48.85
Stock Futures 11,27,414 58908.38 -4.11
Stock Options 10,17,535 57307.08 43.27
Total 1,99,94,544
11,00,322.42 42.53
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 9800 273.10
49.90 50.10 9849.90
Sell 9900 223.20
Buy 9800 273.10
94.65 105.35 9894.65
Sell 10000 178.45
Buy 9900 223.20
44.75 55.25 9944.75
Sell 10000 178.45
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 9800 286.30
44.25 55.75 9755.75
Sell 9700 242.05
Buy 9800 286.30
81.20 118.80 9718.80
Sell 9600 205.10
Buy 9700 242.05
36.95 63.05 9663.05
Sell 9600 205.10
Nifty Put-Call Analysis
,0
200,000
400,000
600,000
800,000
1000,000
1200,000
1400,000
1600,000
1800,000
2000,000
9200 9300 9400 9500 9600 9700 9800 9900 10000 10100 10200 10300 10400 10500
Call Put
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Technical & Derivatives Report
June 02, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
320
325
331
335
341
ASIANPAINT 1,665 1,679
1,696
1,710
1,726
AXISBANK
383
390
400
407
417
BAJAJ-AUTO 2,693 2,726
2,758
2,790
2,822
BAJFINANCE 1,899 2,030
2,128
2,259
2,357
BAJAJFINSV 4,327 4,545
4,695
4,913
5,064
BPCL
331
339
348
355
364
BHARTIARTL
545
552
557
564
568
INFRATEL
212
218
228
234
243
BRITANNIA 3,366 3,401
3,435
3,470
3,504
CIPLA
625
634
643
652
661
COALINDIA
138
143
147
152
155
DRREDDY 3,844 3,899
3,996
4,050
4,147
EICHERMOT 16,477
16,731
17,056
17,310
17,634
GAIL
90
91
93
94
96
GRASIM
568
576
588
596
608
HCLTECH
545
552
563
570
581
HDFCBANK
954
971
983
1,000
1,012
HDFC 1,671 1,704
1,735
1,768
1,798
HEROMOTOCO
2,259
2,293
2,346
2,379
2,433
HINDALCO
134
137
141
144
148
HINDUNILVR 2,036 2,072
2,108
2,144
2,179
ICICIBANK
329
334
341
346
353
IOC
83
85
86
87
89
INDUSINDBK
394
402
409
418
425
INFY
684
692
699
707
714
ITC
195
198
202
204
208
JSW STEEL
181
188
194
200
206
KOTAKBANK 1,214 1,231
1,255
1,272
1,296
LT
892
910
942
960
992
M&M
429
445
458
474
487
MARUTI 5,577 5,685
5,775
5,883
5,973
NESTLEIND 16,710
16,947
17,348
17,585
17,986
NTPC
96
97
98
99
101
ONGC
82
83
85
86
88
POWERGRID
156
157
159
161
163
RELIANCE 1,449 1,485
1,512
1,547
1,574
SHREECEM 20,521
20,795
21,130
21,404
21,739
SBIN
160
165
168
173
176
SUNPHARMA
444
455
469
480
495
TCS 1,950 1,998
2,029
2,076
2,108
TATAMOTORS
86
88
90
91
93
TATASTEEL
296
306
312
321
327
TECHM
527
535
545
553
563
TITAN
865
912
945
992
1,026
ULTRACEMCO 3,703 3,759
3,857
3,913
4,011
UPL
405
412
418
425
430
VEDANTA
90
92
94
96
99
WIPRO
209
212
216
220
224
ZEEL
179
183
187
191
196
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Technical & Derivatives Report
June 02, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.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