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Technical & Derivatives Report
November 04, 2020
Nifty
Bank Out
look
(
25683
)
On Monday, in a difficult environment the banking space
defended our markets and lifted higher from crucial support
points. But yesterday the stage was set and globally we witnessed
a cheerful mood ahead of the US Presidential election. As a
result, the BANKNIFTY opened higher for the second consecutive
session, which continued throughout the remaining part to add
another three percent to the bulls’ kitty.
The banking index marked highest close in last seven months on
Monday and this provided the impetus to yesterday’s head start.
The move has been mesmerising in last couple of days especially
in such kind of uncertainty. Keeping aside the event outcome, if
we just have to go purely by charts, the BANKNIFTY is very much
poised for a move towards 26000-26500. On the flipside, 25250
- 25000 should now act as a strong support zone.
Key Levels
Support 1 – 25250 Resistance 1 – 26000
Support 2 – 25000 Resistance 2 – 26500
Exhibit 1: Nifty Daily Chart
Sensex (40261) / Nifty (11814)
Nifty started the session on a positive note and surpassed the
hurdle of 11750. Led by the banking space, the index rallied higher
and ended the day above 11800.
In last three sessions, Nifty has oscillated within a range but it
surpassed its immediate hurdle of 11750 in opening ticks. Bank
Nifty too opened gap up and it continued its mesmerizing move to
lead the benchmark higher. Nifty has reclaimed the 11800 mark
ahead of the mega global event and hence, all eyes would now be
on the U.S. elections outcome and the global markets reaction on
it. Technically, it seems that we are poised for the next leg of
upmove after the recent pause. A support base has been formed in
Nifty now in the range of 11550-11600 and till this intact, the near
term trend looks firm. Also, the Nifty Midcap index is trading at a
crucial juncture as it is near the higher end of the recent
consolidation phase. A breakout above 17300-17400 in the
Midcap100 index would unfold the next leg of directional upmove
and hence, traders should be vigilant on the same. As far as Nifty
levels are concerned, the immediate supports for Nifty for the
coming session are placed around 11745 and 11670 whereas
resistances are seen around 11930 and 11970.
Exhibit 2: Nifty Bank Daily Chart
Due to the event, there may be some higher volatility and hence,
traders are advised to follow proper money management
techniques and avoid taking undue risks. Till the above mentioned
short term supports are intact, one should avoid contra trades and
look for opportunities in direction of the primary trend.
.Key Levels
Support 1 – 11745 Resistance 1 – 11930
Support 2 – 11670 Resistance2 – 11970
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Technical & Derivatives Report
November 04, 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 11/3
(`000)
Openinterest Nifty
Vie
w
s
Post Monday’s positive closing, we once again kick
started the day on a cheerful note. As the day
progressed, follow-up buying was seen to extend the
upmove beyond 11800 mark. In the midst, we saw
some consolidation but fresh buying in the final hour
led closing with the gains of 1.24%.
FIIs were net buyers in the cash segment to the tune of
Rs. 2274 crores. In index future segment, they bought
worth Rs. 480 crores with rise in open interest
indicating long formation in yesterday’s session.
In F&O space, we saw addition of fresh long positions
in both the indices. Decent amount of longs from last
series are also intact in Nifty. Looking at yesterday’s
move beyond 11800 mark, the call writer of 11700-
11950 lost hopes and hence they preferred covering
their positions. Meanwhile, decent writing was seen in
11500-11800 put options. Now, the maximum open
interest concentration for the current weekly series is
placed at 12000 call and 11500 put options. The
Volatility index plunged 4%, which is a sign of
strength. Considering the recent development in
derivatives segment, we continue with our optimistic
stance on market and soon expect extension of recent
rally beyond 12000 mark. Hence, any intraday decline
shall be an opportunity to re-enter.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 0.50%
Bank Nifty futures open interest has increased by 4.70%
as market closed at 11813.50 levels.
The Nifty November future closed with a premium of
11.45 point against a premium of 12.40 point in last
trading session. The December series closed at a
premium of 31.10 point.
The INDIA VIX has decreased from 25.21 to 24.24.
At the same time, the PCR-OI of Nifty increased from
1.48 to 1.59.
Few of the liquid counters where we have seen high
cost of carry are GMRINFRA, GLENMARK, SAIL,
BANKBARODA and BHEL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ICICIGI 130050 22.40 1226.15 0.07
PETRONET 8049000 15.65 224.85 -1.46
RBLBANK 15942400 12.07 184.50 2.69
POWERGRID 15996000 10.68 179.95 3.09
PVR 1783067 10.66 1101.70 -0.93
BALKRISIND 1647200 9.84 1350.45 1.18
JINDALSTEL 26480000 9.58 201.65 5.67
DABUR 14195000 9.04 515.40 1.84
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ESCORTS 2941950 -10.52 1234.60 0.28
TORNTPOWER 1890000 -9.09 312.70 1.79
BPCL 18973800 -8.73 350.85 0.75
HEROMOTOCO 2774400 -8.18 2937.45 3.31
CUMMINSIND 1384800 -7.90 447.00 1.94
BANDHANBNK 13003200 -7.77 308.30 2.27
FEDERALBNK 84357500 -6.33 53.50 3.28
COALINDIA 37078300 -6.10 116.50 0.35
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.59 0.82
BANKNIFTY 1.49 0.79
RELIANCE 0.49 0.50
ICICIBANK 1.02 0.77
INFY 0.55 0.48
Historical Volatility
SCRIP HV
GODREJPROP 62.57
CADILAHC 43.67
UPL 58.42
NTPC 39.75
POWERGRID 37.48
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Technical & Derivatives Report
November 04, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (November Series) are given as an information and not as a recommendation.
Nifty Spot =
11813.50
FII Statistics for November 03, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
3746.19 3266.33 479.86
111339 9149.29 2.53
INDEX
OPTIONS
187141.87 186111.07 1030.80
804046 64967.74 11.27
STOCK
FUTURES
15521.38 14776.11 745.27
1189394 80103.62 0.31
STOCK
OPTIONS
6538.20 6565.66 (27.46) 55252 3806.99 10.81
Total 212947.64
210719.17
2228.47
2160031
158027.64
4.51
Turnover on November 03, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
4,78,502 34295.22 -15.79
Index
Options
1,82,74,513
13,20,646.57
1.28
Stock Futures
8,72,590 61044.20 -1.29
Stock
Options
12,29,694 92280.13 -5.21
Total 2,08,55,299
15,08,266.12
0.29
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11900 235.80
46.15 53.85 11946.15
Sell 12000 189.65
Buy 11900 235.80
86.45 113.55 11986.45
Sell 12100 149.35
Buy 12000 189.65
40.30 59.70 12040.30
Sell 12100 149.35
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11800 264.15
40.80 59.20 11759.20
Sell 11700 223.35
Buy 11800 264.15
77.00 123.00 11723.00
Sell 11600 187.15
Buy 11700 223.35
36.20 63.80 11663.80
Sell 11600 187.15
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300 12400 12500
Call Put
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Technical & Derivatives Report
November 04, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
339
346
355
362
370
ASIANPAINT 2,118 2,136
2,165
2,183
2,212
AXISBANK
519
526
532
539
545
BAJAJ-AUTO 2,825 2,870
2,900
2,945
2,975
BAJFINANCE 3,371 3,431
3,476
3,535
3,580
BAJAJFINSV 5,637 5,690
5,750
5,804
5,863
BPCL
344
347
352
355
360
BHARTIARTL
441
448
454
461
468
BRITANNIA 3,350 3,377
3,417
3,444
3,484
CIPLA
740
750
760
770
780
COALINDIA
115
116
116
117
118
DIVISLAB 3,030 3,060
3,089
3,119
3,148
DRREDDY 4,787 4,832
4,876
4,921
4,965
EICHERMOT 2,006 2,050
2,083
2,127
2,160
GAIL
82
83
84
85
86
GRASIM
779
785
793
799
807
HCLTECH
800
807
819
827
839
HDFCBANK 1,216 1,232
1,241
1,257
1,267
HDFCLIFE
585
592
597
604
608
HDFC 1,991 2,061
2,100
2,170
2,210
HEROMOTOCO 2,809 2,873
2,911
2,976
3,014
HINDALCO
169
174
177
183
186
HINDUNILVR 2,015 2,035
2,064
2,084
2,112
ICICIBANK
416
430
438
452
461
IOC
76
77
78
79
80
INDUSINDBK
624
635
643
654
661
INFY 1,045 1,054
1,066
1,075
1,088
ITC
166
168
169
172
173
JSW STEEL
309
312
314
317
319
KOTAKBANK 1,557 1,575
1,588
1,607
1,620
LT
924
936
944
956
965
M&M
587
591
598
603
610
MARUTI 6,799 6,856
6,910
6,967
7,020
NESTLEIND 16,464
16,678
16,974
17,188
17,484
NTPC
78
82
87
91
96
ONGC
65
66
66
67
67
POWERGRID
171
176
178
182
185
RELIANCE 1,791 1,821
1,865
1,895
1,939
SBILIFE
757
773
785
801
814
SHREECEM 21,521
21,698
21,849
22,027
22,178
SBIN
195
200
203
208
211
SUNPHARMA
456
471
481
496
506
TCS 2,569 2,601
2,633
2,665
2,697
TATAMOTORS
131
133
135
136
139
TATASTEEL
400
404
408
411
416
TECHM
792
800
812
821
833
TITAN 1,163 1,181
1,193
1,212
1,224
ULTRACEMCO 4,479 4,514
4,551
4,586
4,622
UPL
391
404
427
440
462
WIPRO
329
332
336
339
343
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Technical & Derivatives Report
November 04, 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