www.angelbroking.com
January 05, 2021
Technical & Derivatives Report
Nifty
Bank Out
-
(
31212)
The banking index opened higher in line with benchmark; but in
the initial couple of hours, we witnessed a nosedive to enter sub-
31000 territory. Fortunately, the entire market recovered during
the remaining part of the session and although BANKNIFTY didn’t
recover to the tune of its peers, it managed to recoup decent
losses to end on a flat note.
We are witnessing good traction in most of the sectoral indices
(especially midcap space); but banking somehow seems to have
lost its mojo. In last couple of sessions, we witnessed a sheer
underperformance from banking conglomerates. Going ahead,
31000-31500 would be seen as a crucial range. A decisive move
outside this range would dictate the immediate direction. Hence,
traders are advised to avoid aggressive longs until it breaks 31500;
whereas a sustainable move below 31000-30900 would result in
a correction towards 30600-30400 levels.
Key Levels
Support 1 – 30900 Resistance 1 – 31500
Support 2 – 30600 Resistance 2 – 31800
Exhibit 1: Nifty Daily Chart
Sensex (48177) / Nifty (14133)
Our markets started the week above 14100 on back of positive
global cues. Post some consolidation, the index corrected and
sneaked below the 14000 mark, but the dip again got bought into
and Nifty crept higher for the rest of the day to end well above 14100
with gains of over 100 points.
The bulls are reluctant to give up and the intraday dip again
witnessed good buying interest from market participants. Nifty
continued to make new milestones and all the sectors, except
banking, participated in the up move yesterday. So the trend
continues to be positive with no signs of reversal. However, at all-
time highs, usually retracement and extensions of the previous
moves works well to determine the resistances. When applied certain
retracement to the recent correction and an extension to first the
price upmove from the March low, the resistance for Nifty comes in
the range of 14170-14200 which is not very far from yesterday’s
close. Hence, it would be crucial to see how the index behaves
around this resistance and thus market participants should be
vigilant of the same. It is definitely not advisable to take any contra
calls in anticipation of any reversal as we are trading in a strong
uptrend, but traders should prefer to book timely profits on existing
positions and tighten the risk management part of the trade. The
immediate support for the Nifty is placed at 13950 and now
becomes a sacrosanct for this leg of upmove.
Most of the sectors participated in the up move yesterday with
Metals,IT and some Pharma names showing significant
outperformance. On the other hand, the banking space continued
to consolidate and underperformed relatively. Traders are advised to
focus on such stock specific opportunities which are providing good
moves and capitalize on the same.
Key Levels
Support 1 – 14000 Resistance 1 – 14170
Support 2 – 13950 Resistance2 – 14200
Exhibit 2: Nifty Bank Daily Chart
www.angelbroking.com
Technical & Derivatives Report
January 05, 2021
Nifty Vs OI
12800
13000
13200
13400
13600
13800
14000
14200
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
12/15 12/17 12/21 12/24 12/28 12/30 1/1
(`000)
Openinterest Nifty
View
We began yesterday’s session with an upside gap tad above
14100; but, decent profit booking took place in the initial two
hours to drag index towards 13950. Fortunately, due to fresh
buying interest around this psychological mark of 14000, the
benchmark index recouped all the intraday losses to conclude
the session above 14100
.
FIIs were net buyers in the cash segment to the tune of Rs. 1843
crore. In index future segment, they bought worth 943 crore
with increase in open interest indicating long formations and
short unwinding in yesterday’s session
.
In F&O space, we saw addition of fresh long positions in Nifty
and mixed positions were formed in case of banking index. FII's
bought equities in cash segment and formed longs in index
futures as well. Yesterday, despite sharp profit booking in the
early morning trade, put writers of 14000 and 14100 strikes
preferred holding their positions strongly and this resulted in a
V-shaped recovery. On the flip side, decent open interest
addition was visible in 14100, 14200 and 14400 call options and
we believe these are longs. Maximum open interest
concentration remains intact in 14000 put and 14200 call
options. Considering the above data points, we expect further
upside towards 14200-14250 in the near term. On the
downside, 13900-14000 is a very strong demand zone. In case
the index breaches this support, then one should reassess the
situation
.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 4.27%
Bank Nifty futures open interest has increased by 2.65%
as market closed at 14132.90 levels.
The Nifty January future closed with a premium of 32.40
point against a premium of 35.35 point in last trading
session. The February series closed at a premium of 65.05
point.
The INDIA VIX increased from 19.56 to 20.03.
At the same time, the PCR-OI of Nifty increased from 1.37
to 1.52.
Few of the liquid counters where we have seen high cost
of carry are IDEA, GMRINFRA, PNB, NMDC AND
NATIONALUM.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
AARTIIND 126225 42.79 1282.05 1.68
PNB 124768000 26.96 35.55 2.29
AMARAJABAT 1703000 23.94 965.75 4.33
RBLBANK 18142400 15.00 239.60 3.69
HEROMOTOCO 4029600 14.82 3043.85 -1.74
RAMCOCEM 1821550 13.81 798.35 0.42
SAIL 108775000 12.08 79.30 5.94
MUTHOOTFIN 4725000 11.33 1244.10 2.51
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BEL 29518400 -13.09 131.30 3.62
APOLLOTYRE 9610000 -7.95 188.60 4.42
LICHSGFIN 6518000 -7.36 381.70 1.03
HDFCLIFE 9959400 -7.05 695.85 2.50
ESCORTS 3472150 -6.13 1312.25 1.71
TATACHEM 6392000 -6.08 489.25 1.81
EICHERMOT 2339750 -5.78 2655.75 4.10
HDFCAMC 158200 -5.61 3025.60 0.63
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.52 1.01
BANKNIFTY 0.73 0.93
RELIANCE 0.60 0.42
ICICIBANK 0.63 0.62
INFY 0.60 0.32
Historical Volatility
SCRIP HV
TATASTEEL 53.72
NATIONALUM 53.80
HINDALCO 60.88
CUMMINSIND 41.81
TCS 37.50
www.angelbroking.com
Technical & Derivatives Report
January 05, 2021
Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.
Nifty Spot =
14132.90
FII Statistics for January 04, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
4443.59
3500.89
942.70
139070
13796.88
4.72
INDEX
OPTIONS
286360.12
285553.36
806.76
677605
64984.77
14.56
STOCK
FUTURES
12443.43
11662.23
781.20
1191420
97332.45
1.65
STOCK
OPTIONS
6221.42
6303.86
(82.44) 86004
6844.69
26.35
Total 309468.56
307020.34
2448.22
2094099
182958.79
6.60
Turnover on January 04, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 3,59,049 31941.62 121.46
Index
Options
2,48,72,069
22,09,309.68
153.94
Stock
Futures
7,77,952 64341.10 75.22
Stock
Options
12,36,422
1,05,628.56
70.64
Total
2,72,45,492
24,11,220.96
145.28
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 14100 298.50
56.15 43.85 14156.15
Sell 14200 242.35
Buy 14100 298.50
107.05 92.95 14207.05
Sell 14300 191.45
Buy 14200 242.35
50.90 49.10 14250.90
Sell 14300 191.45
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 14100 235.70
38.90 61.10 14061.10
Sell 14000 196.80
Buy 14100 235.70
69.60 130.40 14030.40
Sell 13900 166.10
Buy 14000 196.80
30.70 69.30 13969.30
Sell 13900 166.10
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
13500 13600 13700 13800 13900 14000 14100 14200 14300 14400 14500 14600 14700 14800
Call Put
www.angelbroking.com
Technical & Derivatives Report
January 05, 2021
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
486
492
502
508
517
ASIANPAINT 2,717 2,735
2,763
2,782
2,809
AXISBANK
615
620
626
631
638
BAJAJ-AUTO 3,442 3,482
3,505
3,545
3,568
BAJFINANCE 5,118 5,167
5,245
5,295
5,373
BAJAJFINSV 8,712 8,805
8,935
9,029
9,158
BPCL
380
388
392
400
405
BHARTIARTL
508
512
516
521
525
BRITANNIA 3,504 3,529
3,561
3,586
3,618
CIPLA
821
827
832
838
843
COALINDIA
135
136
137
138
139
DIVISLAB 3,809 3,836
3,875
3,902
3,941
DRREDDY 5,207 5,240
5,274
5,307
5,341
EICHERMOT 2,545 2,600
2,635
2,690
2,725
GAIL
123
1
26
127
129
131
GRASIM
926
945
956
975
986
HCLTECH
941
960
973
993
1,005
HDFCBANK 1,379 1,397
1,418
1,436
1,457
HDFCLIFE
674
685
691
702
709
HDFC 2,509 2,544
2,568
2,603
2,627
HEROMOTOCO 2,982 3,013
3,068
3,099
3,155
HINDALCO
232
24
3
251
262
269
HINDUNILVR 2,390 2,408
2,419
2,437
2,448
ICICIBANK
520
526
530
536
541
IOC
91
93
93
95
95
INDUSINDBK
873
886
900
912
926
INFY 1,251 1,270
1,280
1,298
1,309
ITC
210
212
214
216
218
JSW STEEL
386
394
400
408
414
KOTAKBANK 1,925 1,945
1,976
1,996
2,026
LT 1,293 1,304
1,313
1,324
1,334
M&M
719
734
742
758
766
MARUTI 7,587 7,645
7,700
7,757
7,813
NESTLEIND 18,146
18,262
18,446
18,562
18,746
NTPC
98
98
99
100
101
ONGC
92
95
96
98
100
POWERGRID
187
188
189
190
191
RELIANCE 1,955 1,973
1,986
2,004
2,017
SBILIFE
885
898
908
921
930
SHREECEM 23,677
23,856
24,040
24,219
24,403
SBIN
275
278
281
284
287
SUNPHARMA
589
597
603
611
617
TCS 2,901 2,970
3,010
3,080
3,120
TATAMOTORS
187
189
191
193
195
TATASTEEL
626
660
680
713
733
TECHM
964
983
994
1,013
1,024
TITAN 1,523 1,537
1,552
1,566
1,581
ULTRACEMCO 5,241 5,284
5,335
5,379
5,430
UPL
463
468
472
477
480
WIPRO
384
390
394
400
404
www.angelbroking.com
Technical & Derivatives Report
January 05, 2021
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: technicalrese[email protected]king.com
For Derivatives Queries E-mail: d[email protected]angelbroking.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]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