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Technical & Derivatives Report
November 05, 2020
Nifty
Bank Out
look
(
25772
)
US Futures were trading with massive volatility since early morning.
Before our opening, there were a couple of swings seen on both
sides and this continued as the day progressed. Fortunately, a few
minutes ahead of our market opening, they turned positive and
remained in the bullish territory for the major part. Since NASDAQ
future has been outperforming by far, the IT stocks in our markets as
well dominated the first session and banking was sulking a bit. But
post the mid session, the banking recovered sharply along with the
broader market and had a lion share in NIfty reclaiming the 11900
mark on a closing basis.
During the intraday correction, the banking index entered our
mentioned support zone of 25250 - 25000, which acted as a sheet
anchor. In fact, due to strong close, the BANKNIFTY clocked a new
seven month high above 25700. The way it's placed since the last
couple of days, we remain sanguine and expect it to head towards
26000 - 26500. On the flip side, 25250 - 25000 continues to be a
sacrosanct support. But since the election outcome is yet to come,
the uncertainty is likely to loom over and hence, one should avoid
aggressive longs if the verdict is not favourable for markets across
the globe.
Key Levels
Support 1 – 25250 Resistance 1 – 26000
Support 2 – 25000 Resistance 2 – 26500
Exhibit 1: Nifty Daily Chart
Se
nsex
(
40616)
/ Nifty
(
11909
)
Our markets started the session almost flat and surpassed the 11900
mark in the first hour post opening. But the volatility in global markets
kept the traders on toes and post noon, we saw a sharp cut after a
sudden fall in Dow Futures. However, the index managed to find
support above 11750 and recovered in last couple of hours to end the
volatile session above 11900.
Our markets witnessed a volatile session yesterday which was much
expected due to the mega global event of U.S. elections. But inspite of
the volatility, Nifty reclaimed the 11900 mark at close and continued to
march higher. The broader markets too supported and the overall
breadth was in favor of the advances. Now, trend continues to look
positive as far as benchmark index is concerned, and the Midcap index
too is interestingly poised as it is on a cusp of breakout from its
resistance zone. A move above 17400 should led to the next leg of
trended upmove in the midcap space and hence, traders are advised to
keep a close watch on the same. Also, 12000-12025 has been a hurdle
for Nifty recently and once we see a breakout beyond the same, the
index too should see a good momentum for near term targets of
12160 followed by 12325. Thus, a simultaneous breakout in both Nifty
and the Midcap index should lead to a good trended upmove in the
broader markers, and thus traders should capitalize on such
opportunity. On the flipside, 11800-11750 would now be seen as
immediate supports for Nifty.
Exhibit 2: Nifty Bank Daily Chart
Now, overnight we have seen volatile swings in the global markets and
SGX Nifty is indicating a gap up opening. Our markets as well are likely
to see volatile swings, and hence on a closing basis, it will be crucial to
see if prices sustain above the mentioned levels.
.Key Levels
Support 1 – 11800 Resistance 1 – 12160
Support 2 – 11750 Resistance2 – 12325
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November 05, 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
View
s
It was indeed a volatile day for our market. We
saw a decent follow-up buying post opening to
rally beyond 11900 mark. However, due to sell-off
seen in the global market Nifty too plunged
towards 11750 in the midst. Luckily, we witnessed
v-shaped recovery in the final hour to conclude
the session 0.80% higher to its previous close.
FIIs were net buyers in the cash segment to the
tune of Rs. 146 crores. In index future segment,
they sold worth Rs. 290 crores with some rise in
open interest indicating some short formation in
yesterday’s session.
In F&O space, we saw addition of fresh long
positions in Nifty; whereas, short covering took
place in banking index. Decent amount of longs
from last series are also intact in the system. In
options front, build-up was scattered between
11900-12300 call options. On the other side, good
amount of writing was seen in 11700-11900 put
options. Now, the maximum open interest
concentration for the current weekly series has
shifted higher to 12300 call and in puts still
remains intact in 11500 strike. Considering the
above data, we continue with our optimistic
stance on market and soon expect extension of
recent rally beyond 12000 mark.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 4.91%
Bank Nifty futures open interest has decreased by 7.69%
as market closed at 11813.50 levels.
The Nifty November future closed with a premium of
14.35 point against a premium of 11.45 point in last
trading session. The December series closed at a
premium of 29.50 point.
The INDIA VIX has decreased from 24.24 to 23.20.
At the same time, the PCR-OI of Nifty decreased from
1.59 to 1.54.
Few of the liquid counters where we have seen high cost
of carry are IDEA, PEL, SBIN, ADANIPORTS AND
M&MFIN.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ADANIPORTS 41502500 40.15 361.20 2.22
GODREJPROP 1465750 27.76 978.35 -5.09
MRF 28580 17.32 68449.90 1.60
UPL 21214700 16.96 401.35 -3.72
PVR 2080584 16.69 1115.90 4.10
APOLLOTYRE 11325000 16.09 147.90 3.49
COLPAL 2837800 11.50 1474.90 -0.76
LICHSGFIN 9702000 10.28 295.30 -2.50
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
DABUR 12465000 -12.19 518.45 0.58
SUNPHARMA 41038200 -12.12 504.65 3.69
BANKNIFTY 1821625 -7.69 25771.60 0.49
ESCORTS 2728000 -7.27 1232.35 0.47
BANKBARODA 45117500 -5.67 45.05 -0.11
ASHOKLEY 34776000 -5.66 83.95 0.06
MGL 1626600 -5.64 820.25 0.67
HEROMOTOCO 2640900 -4.81 2968.05 0.99
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.54 0.95
BANKNIFTY 1.40 0.97
RELIANCE 0.49 0.41
ICICIBANK 0.82 0.79
INFY 0.49 0.40
Historical Volatility
SCRIP HV
GODREJPROP 62.91
SUNPHARMA 44.50
DIVISLAB 42.25
HAVELLS 42.96
PAGEIND 46.87
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Technical & Derivatives Report
November 05, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (November Series) are given as an information and not as a recommendation.
Nifty Spot =
11908.50
FII Statistics for November 04, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
4936.18 5225.87 (289.69) 111848 9310.33 0.46
INDEX
OPTIONS
331034.23 331170.42 (136.19) 822072 67117.33 2.24
STOCK
FUTURES
16540.99 15777.08 763.91
1204250 81837.87 1.25
STOCK
OPTIONS
7333.63 7400.28 (66.65) 61734 4287.76 11.73
Total 359845.03
359573.65
271.38
2199904
162553.29
1.85
Turnover on November 04, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
6,25,875 45503.75 32.68
Index
Options
3,14,55,278
22,91,406.78
73.51
Stock Futures
9,18,168 64283.22 5.31
Stock
Options
12,80,591 96681.90 4.77
Total 3,42,79,912
24,97,875.65
65.61
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11900 264.90
55.80 44.20 11955.80
Sell 12000 209.10
Buy 11900 264.90
103.45 96.55 12003.45
Sell 12100 161.45
Buy 12000 209.10
47.65 52.35 12047.65
Sell 12100 161.45
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11900 240.00
38.85 61.15 11861.15
Sell 11800 201.15
Buy 11900 240.00
71.70 128.30 11828.30
Sell 11700 168.30
Buy 11800 201.15
32.85 67.15 11767.15
Sell 11700 168.30
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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November 05, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
340
351
360
371
380
ASIANPAINT 2,122 2,146
2,180
2,204
2,238
AXISBANK
500
513
523
536
546
BAJAJ-AUTO 2,853 2,890
2,919
2,955
2,984
BAJFINANCE 3,423 3,492
3,531
3,600
3,639
BAJAJFINSV 5,666 5,739
5,789
5,862
5,912
BPCL
340
344
349
353
357
BHARTIARTL
444
448
452
457
460
BRITANNIA 3,369 3,420
3,463
3,514
3,557
CIPLA
747
764
774
791
801
COALINDIA
112
114
115
116
118
DIVISLAB 3,066 3,131
3,170
3,236
3,275
DRREDDY 4,839 4,887
4,926
4,974
5,013
EICHERMOT 2,043 2,070
2,097
2,125
2,152
GAIL
82
83
84
84
85
GRASIM
769
776
786
793
802
HCLTECH
791
803
823
834
854
HDFCBANK 1,216 1,237
1,251
1,271
1,286
HDFCLIFE
584
589
596
602
609
HDFC 2,015 2,051
2,093
2,130
2,172
HEROMOTOCO 2,884 2,926
2,952
2,994
3,020
HINDALCO
170
173
177
180
184
HINDUNILVR 2,030 2,045
2,065
2,080
2,100
ICICIBANK
418
428
435
444
451
IOC
76
77
78
79
79
INDUSINDBK
636
657
669
690
702
INFY 1,043 1,069
1,092
1,118
1,141
ITC
166
168
170
172
174
JSW STEEL
309
314
316
320
323
KOTAKBANK 1,557 1,594
1,615
1,652
1,673
LT
920
930
940
950
961
M&M
586
591
597
603
609
MARUTI 6,828 6,891
6,973
7,036
7,117
NESTLEIND 16,632
16,815
17,007
17,190
17,382
NTPC
83
84
86
87
88
ONGC
65
66
66
67
68
POWERGRID
172
175
177
180
183
RELIANCE 1,801 1,857
1,893
1,949
1,985
SBILIFE
778
784
791
797
803
SHREECEM 21,552
21,731
21,904
22,083
22,256
SBIN
194
200
205
211
216
SUNPHARMA
483
494
506
517
529
TCS 2,550 2,601
2,662
2,713
2,774
TATAMOTORS
133
134
136
137
139
TATASTEEL
393
399
407
412
420
TECHM
802
814
825
838
849
TITAN 1,184 1,200
1,209
1,225
1,234
ULTRACEMCO 4,438 4,485
4,548
4,595
4,658
UPL
389
395
405
412
422
WIPRO
330
336
344
351
358
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Technical & Derivatives Report
November 05, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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For Derivatives Queries E-mail: derivat[email protected]
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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