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Technical & Derivatives Report
November 03, 2020
Nifty
Bank Out
look
(
24893
)
It was one of the rarest day when Bank Nifty and Nifty had so
wide gap between them. Normal underperformance or
outperformance is a part of the market movement but yesterday
what we witnessed was extremely astonishing. The banking index
started with a good bump up; courtesy to stellar quarterly
numbers from ICICI Bank. In fact, other banking peers joined
hands as the day progressed, resulting into a colossal one day
rally in Bank Nifty to march towards the 25000 mark. On the
other hand, Reliance was sulking and kept falling throughout the
day. This weighed down heavily on Nifty, but fortunately, banks
became the knight in the shining armour to not only defend but
also to lift Nifty well inside the positive territory. Ideally, such
huge divergence should not last long and hence, it would be very
interesting to see how these pockets banking and Reliance
behave for next couple of days. Now as far as levels are
concerned, 25150-25250 are the levels to watch out for in case
of BankNifty; whereas on the lower side, 24700-24500 should act
as a decent support.
Key Levels
Support 1 – 24700 Resistance 1 – 25150
Support 2 – 24500 Resistance 2 – 25250
Exhibit 1: Nifty Daily Chart
Sensex (39758) / Nifty (11669)
Our market started the week marginally positive around the 11700
mark. However, Nifty corrected from the opening ticks itself due to
sell-off seen in the heavyweight Reliance and almost tested the
11550 support. But it recovered gradually led by the banking space
and ended the day with marginal gains at 11669.
The weekend gone by had some important results of index
heavyweight stocks such as Reliance Industries and ICICI Bank. We
witnessed a gap up opening in ICICI Bank which set the tone for the
banking stocks and one after another most of the stocks from this
sector witnessed good buying momentum. As a result, the Bank
Nifty index rallied higher and it was one of the best days for this
index as it posted gains of almost 1000 points at close. However, it
was an unusual day for Reliance Industries which witnessed selling
pressure right from the opening ticks and it was one of the worst
days in recent times for this heavyweight as it corrected by almost 9
percent. The tug-of-war between Reliance and Banking stocks
restricted the Nifty from any directional move and hence, it ended
with marginal gains. Now if we look at the last three sessions, Nifty
has oscillated within a broad range wherein 11750 has become the
resistance and 11550-11500 a sacrosanct support. The event of
U.S. elections could lead to some volatility in the global markets
and thus, our markets too seem to be indecisive at the moment.
But, a move beyond the above mentioned range could then lead to
a directional move and hence, traders should be watchful on the
above mentioned levels
.
Exhibit 2: Nifty Bank Daily Chart
Next couple of sessions would be very crucial to determine the
near term trend for the markets. As far as the support of 11500-
11550 is intact, we remain hopeful of a resumption of upmove.
However, traders are advised to avoid aggressive trades till there’s
a breakout above 11750. Sectorial themes are providing good
opportunities for day traders and hence, traders are advised to look
for such stock/sector specific opportunities.
.Key Levels
Support 1 – 11550 Resistance 1 – 11750
Support 2 – 11500 Resistance2 – 11800
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Technical & Derivatives Report
November 03
, 2020
Nifty Vs OI
11400
11500
11600
11700
11800
11900
12000
12100
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
10/12 10/14 10/16 10/20 10/22 10/26 10/28 10/30
(`000)
Openinterest Nifty
Vie
w
s
We started-off the week with an upside gap; but, these
gains were short lived as we saw decent profit booking
in the initial hour to wipe-off all the early opening
gains. However, 11550 once again acted as a demand
zone and smart recovery brought index above 11700
mark. In last half an hour, due to some unwinding
Nifty concluded the session 27 points higher.
FIIs were net buyers in the cash segment to the tune of
Rs. 741 crores. In index future segment, they bought
worth Rs. 1227 crores with fall in open interest
indicating short covering in yesterday’s session.
In derivatives space, banking index added fresh longs
and short covering was seen in case of Nifty. In
options front, some build-up was seen in 11800-11950
followed by unwinding in 11600 and 11700. On the flip
side, writing was seen in 11300 and 11500 put strikes.
Last series, we saw good amount of long addition in
Nifty and these positions have been rolled too.
Strongers hands were net buyers in equities and they
also covered meaningful shorts in index futures. Post
2-3 session, we finally saw Nifty trading in premium;
which is again a positive development. Considering the
above data points, we remain optimistic on the market
and hence, would advise traders to use declines
towar
ds 11500
-
11550 to add fresh longs.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 7.94%
Bank Nifty futures open interest has increased by 3.84%
as market closed at 11669.15 levels.
The Nifty November future closed with a premium of
12.40 point against a discount of 4.00 point in last
trading session. The December series closed at a
premium of 27.80 point.
The INDIA VIX has increased from 24.75 to 25.21.
At the same time, the PCR-OI of Nifty increased from
1.46 to 1.48.
Few of the liquid counters where we have seen high
cost of carry are IDEA, BHEL, BPCL, IBULHSGFIN and
FEDERALBNK.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ICICIGI 106250 89.39 1225.05 -0.86
GODREJPROP 1069900 50.05 1141.65 9.06
CHOLAFIN 6267500 46.10 293.05 6.59
SRTRANSFIN 3914623 16.61 754.05 8.52
ESCORTS 3287900 16.46 1228.20 2.18
VOLTAS 2028000 12.35 720.45 2.24
TATACHEM 4668000 12.05 313.50 -2.94
CADILAHC 6111600 11.48 410.65 -1.68
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
DLF 26875200 -8.86 164.80 4.06
NMDC 24984300 -7.19 84.15 2.19
TECHM 10620000 -6.92 814.65 0.30
UPL 16851900 -5.11 445.35 -1.99
COALINDIA 39488900 -4.32 115.70 1.27
ONGC 44636900 -4.17 65.70 1.23
AMARAJABAT 888000 -3.79 775.35 1.27
AMBUJACEM 15867000 -3.59 260.50 0.58
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.48 0.84
BANKNIFTY 1.33 0.77
RELIANCE 0.47 0.62
ICICIBANK 0.71 0.46
INFY 0.57 0.58
Historical Volatility
SCRIP HV
RELIANCE 49.92
HAVELLS 42.97
GODREJPROP 61.36
BANKBARODA 59.45
HDFC 50.25
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Technical & Derivatives Report
November 03
, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (November Series) are given as an information and not as a recommendation.
Nifty Spot =
11669.15
FII Statistics for November 02, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
5226.34 3999.75 1226.59
108587 8808.66 (15.75)
INDEX
OPTIONS
215220.55 216974.28 (1753.73) 722591 58373.72 3.70
STOCK
FUTURES
16711.77 15977.69 734.08
1185732 78763.24 1.93
STOCK
OPTIONS
7818.64 7724.15 94.49
49862 3405.03 17.39
Total 244977.30
244675.87
301.43
2066772
149350.65
1.74
Turnover on November 02, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
5,90,318 40726.83 -0.97
Index
Options
1,83,69,602
13,03,912.61
18.57
Stock Futures
8,98,697 61840.74 5.34
Stock
Options
12,58,024 97351.58 42.46
Total 2,11,16,641
15,03,831.76
18.61
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11700 284.05
52.20 47.80 11752.20
Sell 11800 231.85
Buy 11700 284.05
93.30 106.70 11793.30
Sell 11900 190.75
Buy 11800 231.85
41.10 58.90 11841.10
Sell 11900 190.75
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11600 257.55
39.35 60.65 11560.65
Sell 11500 218.20
Buy 11600 257.55
71.45 128.55 11528.55
Sell 11400 186.10
Buy 11500 218.20
32.10 67.90 11467.90
Sell 11400 186.10
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300
Call Put
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November 03
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Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
345
351
357
363
368
ASIANPAINT 2,128 2,151
2,188
2,210
2,248
AXISBANK
480
501
516
538
553
BAJAJ-AUTO 2,755 2,799
2,867
2,912
2,979
BAJFINANCE 3,208 3,314
3,381
3,487
3,553
BAJAJFINSV 5,497 5,599
5,662
5,764
5,827
BPCL
339
343
349
352
359
BHARTIARTL
426
442
451
467
476
BRITANNIA 3,338 3,379
3,432
3,474
3,527
CIPLA
735
743
753
761
771
COALINDIA
112
114
115
117
118
DIVISLAB 2,980 3,014
3,075
3,109
3,169
DRREDDY 4,767 4,813
4,866
4,912
4,966
EICHERMOT 1,966 1,998
2,047
2,079
2,128
GAIL
82
83
84
85
86
GRASIM
769
778
785
795
801
HCLTECH
804
813
828
838
853
HDFCBANK 1,158 1,187
1,206
1,234
1,253
HDFCLIFE
580
584
589
593
598
HDFC 1,858 1,950
2,007
2,099
2,156
HEROMOTOCO 2,769 2,802
2,845
2,878
2,921
HINDALCO
165
168
170
173
175
HINDUNILVR 2,040 2,056
2,072
2,088
2,104
ICICIBANK
400
409
416
425
432
IOC
76
77
79
80
82
INDUSINDBK
573
601
618
646
663
INFY 1,039 1,056
1,068
1,084
1,097
ITC
163
165
166
168
169
JSW STEEL
304
307
309
312
315
KOTAKBANK 1,503 1,542
1,573
1,612
1,643
LT
912
921
929
938
947
M&M
584
590
595
601
606
MARUTI 6,721 6,794
6,924
6,998
7,127
NESTLEIND 16,718
16,917
17,138
17,337
17,558
NTPC
87
88
89
90
91
ONGC
63
65
65
66
67
POWERGRID
171
172
173
174
176
RELIANCE 1,753 1,815
1,921
1,983
2,089
SBILIFE
753
759
769
776
785
SHREECEM 21,308
21,489
21,694
21,876
22,080
SBIN
187
192
194
199
202
SUNPHARMA
455
462
466
474
478
TCS 2,558 2,581
2,623
2,646
2,688
TATAMOTORS
130
131
133
134
136
TATASTEEL
391
397
405
411
418
TECHM
801
808
816
823
832
TITAN 1,140 1,154
1,168
1,182
1,196
ULTRACEMCO 4,484 4,517
4,553
4,587
4,623
UPL
414
430
447
463
481
WIPRO
329
332
337
340
345
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Technical & Derivatives Report
November 03
, 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]roking.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