www.angelbroking.com
Technical & Derivatives Report
May 04, 2020
Nifty Bank Outlook - (21534)
Following the positive momentum from the previous session, the
bank nifty witnessed a gap up opening on the expiry day and
after consolidating in a range ended the session with gains of
2.11% at 21534.
On the daily chart, the bank nifty for the major part of the month
underperformed and consolidated in a range however during the
expiry week it witnessed a triangle breakout indicating further
upside in the near term. The SGX Nifty, however, is now showing
a big gap down opening and hence the move post the opening
will be very crucial. Post the gap down, the support levels to
watch out is around 19700 - 19500 whereas resistance around
21000 - 21350. Traders are advised to keep positions light and
wait for the volatility to settle.
Key Levels
Support 1 – 19700 Resistance 1 – 21000
Support 2 – 19500 Resistance 2 – 21350
Exhibit 1: Nifty Daily Chart
Sensex (33718) / Nifty (9860)
Since the last week of March, our markets have somehow
managed to stabilise from recent mayhem and then gave some
decent recovery thereafter. Until Tuesday’s session, Nifty was
struggling to surpass the 9400 mark. But due to strong buying
momentum in last couple of sessions, the Nifty finally broke out
from this sturdy wall and went on to close convincingly above
9800 mark.
The March month was one of the worst months for our markets
in history ever, but fortunately, this was followed by a
stupendous April month during which we managed recoup 50%
of the damage done in March. Mainly it was a broad based rally
and some of the laggard spaces like Financials and Auto
contributed heavily, which provided credence to the move.
Looking at the overall set up by taking Thursday’s close, the Nifty
is very much poised for an extended move towards 10200-
10400, which would be seen as a strong hurdle for the market.
Traders should start lightening up positions in the mentioned
zone and then wait for further signals. But before this, there is an
important development happened on a global front over the
past couple of days, which cannot be overlooked.
Key Levels
Support 1 – 9300 Resistance 1 – 9600
Support 2 – 9100 Resistance 2 – 9700
Exhibit 2: Nifty Bank Daily Chart
The US President Donald Trump has threatened China to
impose new tariffs, which could lead to a resumption of trade
war. Hence, market participants across the globe looked
intimidated, resulting into a sharp decline across the globe. The
SGX Nifty too reacted negatively to this development and is
showing a massive cut. For the upcoming session, we need to
see how our market actually reacts to it and if they open in line
with SGX Nifty, 9300 and 9100 would be seen as crucial
supports. If we fail to hold them, this would apply brakes on
recent optimism and in this case, we will have to revisit our
view. However, if our markets doesn’t react to the tune of SGX
Nifty and shows some buying interest at lower levels, the above
mentioned, bull case scenario remains valid. So all eyes would
be on this global development, which would dictate the
immediate path of action for our markets.
www.angelbroking.com
Technical & Derivatives Report
May 04, 2020
Nifty Vs OI
8400
8600
8800
9000
9200
9400
9600
9800
10000
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
4/15 4/16 4/17 4/20 4/21 4/22 4/23 4/24 4/27 4/28 4/29 4/30
(`000)
Openinterest Nifty
View
s
Following the positive momentum from the previous
session, Nifty witnessed a gap up opening and with
positive momentum throughout the session ended
with gains of 3.21% at 9859.90.
FIIs were net buyers in the cash market segment to the
tune of Rs. 1969 crores. In index futures, they sold
worth 294 crores with decrease in open interest.
During the week, the Nifty rallied higher as we
witnessed short covering along with fresh long
formations in the expiry week. The rollover in Nifty is
at 71.29 percent which is in line with 3-month average
of 70.36 percent. The rollover in Bank Nifty is higher at
81.59 percent v/s 3-month average of 70.56 percent.
FII’s started April series with ‘Long Short Ratio’ in index
futures at 29.63 percent. During the series they
covered their positions and even formed fresh longs
when the index moved up. Their ‘Long Short Ratio’
now stands at 64.42 percent and thus they have
covered much of their shorts. Traders are advised to
keep a tab on the market movement in the next few
days of the new series which would provide a clear
idea on the probable short term direction.
C
omme
n
t
s
The Nifty futures open interest has decreased by 17.99%
Bank Nifty futures open interest has decreased by 13.31
% as market closed at 9859.90 levels.
The Nifty May future closed with a discount of 29.05
point against a premium of 14.4 point in last trading
session. The June series closed at a discount of 22.45
points.
The INDIA VIX has increased from 33.83 to 33.98.
At the same time, the PCR-OI of Nifty increased from
1.61 to 1.89.
Few of the liquid counters where we have seen high cost
of carry are, IDEA, GMRINFRA, TATAPOWER, NCC, and
BHEL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
HINDUNILVR 13071300 7.18 2195.00 -1.70
CENTURYTEX 2396400 4.72 292.05 0.39
INFY 49458000 4.69 715.50 5.59
BAJAJ-AUTO 1444250 4.60 2623.40 4.89
HINDALCO 31129000 4.59 130.20 11.62
TECHM 15771600 4.54 546.25 3.16
BPCL 16815600 4.31 370.05 2.34
TATAMOTORS 58695000 3.84 93.25 19.16
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CESC 524000 -64.52 656.05 4.01
ITC 28286400 -52.49 182.05 -0.08
COLPAL 1168300 -43.90 1459.15 -0.56
NESTLEIND 231600 -30.42 17924.35 2.06
IDEA 345940000 -29.75 4.20 0.00
JUSTDIAL 1353800 -29.62 404.95 3.24
GODREJCP 4909600 -27.47 543.20 1.23
MFSL 1443000 -27.17 469.80 -0.82
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.89 0.99
BANKNIFTY 1.10 0.81
RELIANCE 0.83 0.48
ICICIBANK 0.79 0.71
INFY 0.97 0.77
Historical Volatility
SCRIP HV
TATAMOTORS 116.71
UPL 114.38
HCLTECH 84.48
VEDL 106.04
ONGC 108.60
www.angelbroking.com
Technical & Derivatives Report
May 04, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (May Series) are given as an information and not as a recommendation.
Nifty Spot =
9859.90
FII Statistics for April 30, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
7699.59
7993.51
(293.92) 107908
7120.14
(27.04)
INDEX
OPTIONS
350250.53
349615.46
635.07
399275
28596.28
(31.33)
STOCK
FUTURES
24961.54
22619.05
2342.49
1432026
76147.95
(3.45)
STOCK
OPTIONS
1883.04
1877.01
6.03
14401
740.69
(60.23)
Total 384794.70
382105.03
2689.67
1953610
112605.06
(13.12)
Turnover on April 30, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 7,61,751 44275.69 50.28
Index Options 4,76,71,016
24,94,062.88 143.45
Stock Futures 16,68,370 86201.84 9.70
Stock Options 8,42,054 46867.63 1.43
Total 5,09,43,191
26,71,408.04 126.64
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 9900 280.65
48.45 51.55 9948.45
Sell 10000 232.20
Buy 9900 280.65
93.40 106.60 9993.40
Sell 10100 187.25
Buy 10000 232.20
44.95 55.05 10044.95
Sell 10100 187.25
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 9500 356.10
42.55 57.45 9857.45
Sell 9400 313.55
Buy 9500 356.10
82.65 117.35 9817.35
Sell 9300 273.45
Buy 9400 313.55
40.10 59.90 9759.90
Sell 9300 273.45
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
www.angelbroking.com
Technical & Derivatives Report
May 04, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
280
285
290
296
301
ASIANPAINT 1,710 1,734
1,766
1,790
1,822
AXISBANK
428
436
449
458
471
BAJAJ-AUTO 2,452 2,538
2,596
2,681
2,740
BAJFINANCE 2,215 2,267
2,343
2,394
2,471
BAJAJFINSV 4,986 5,045
5,110
5,169
5,234
BPCL
352
361
367
376
383
BHARTIARTL
488
501
508
522
529
INFRATEL
157
166
171
179
184
BRITANNIA 3,119 3,142
3,174
3,197
3,229
CIPLA
570
580
596
605
621
COALINDIA
138
143
146
152
155
DRREDDY 3,776 3,856
3,975
4,055
4,174
EICHERMOT 14,172
14,440
14,670
14,938
15,168
GAIL
89
92
95
98
100
GRASIM
493
499
507
513
521
HCLTECH
472
508
537
572
601
HDFCBANK
977
990
1,004
1,017
1,031
HDFC 1,828 1,872
1,900
1,944
1,971
HEROMOTOCO
1,890
2,028
2,113
2,252
2,336
HINDALCO
115
122
127
135
140
HINDUNILVR 2,097 2,146
2,209
2,258
2,321
ICICIBANK
364
372
382
391
401
IOC
80
82
83
85
87
INDUSINDBK
444
456
474
486
504
INFY
689
702
711
724
733
ITC
178
180
182
184
187
JSW STEEL
158
169
179
190
200
KOTAKBANK 1,311 1,334
1,357
1,380
1,403
LT
867
882
899
915
932
M&M
350
358
363
371
376
MARUTI 4,999 5,179
5,302
5,482
5,605
NESTLEIND 17,324
17,624
17,812
18,112
18,300
NTPC
88
91
94
98
101
ONGC
68
74
77
83
87
POWERGRID
155
158
161
165
167
RELIANCE 1,409 1,438
1,466
1,495
1,523
SHREECEM 18,821
19,294
19,592
20,066
20,364
SBIN
186
188
192
194
198
SUNPHARMA
443
454
469
480
496
TCS 1,906 1,960
1,996
2,050
2,086
TATAMOTORS
83
88
91
96
99
TATASTEEL
281
290
297
306
313
TECHM
523
535
544
555
564
TITAN
909
940
959
990
1,009
ULTRACEMCO 3,396 3,465
3,515
3,585
3,635
UPL
339
380
404
445
470
VEDANTA
78
84
87
93
97
WIPRO
180
185
189
195
198
ZEEL
152
156
160
164
168
www.angelbroking.com
Technical & Derivatives Report
May 04, 2020
*
Research Team Tel: 022 - 39357800 Website: www.angelbroking.com
For Technical Queries E-mail: techni[email protected]king.com
For Derivatives Queries E-mail: derivatives.d[email protected]
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.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or
in connection with the use of this information.