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Technical & Derivatives Report
December 05, 2019
Sensex (
40850
) / Nifty
2043
)
Once again the escalated concerns over Sino-US trade war
spooked the market participants across the globe. Fortunately for
us, we did not react so negatively to this development as some of
the global peers did. After seeing a marginal cut at the opening,
the index picked up strong momentum in the upward direction in
first 30 minutes of trade. In the process, Nifty managed to
reclaim the 12000 mark. However, the selling recurred at higher
levels; resulting into a nosedive below 11950 at the midst. By the
grace of god, traders / investors were given yet another
opportunity to smile as we witnessed not only a v-shaped recovery
but also a convincing break above morning high to end the
session by adding over four tenths of a percent to the bulls’ kitty.
If we take a glance of our previous article, yesterday’s smart
recovery is no surprise to us. Despite all in between hiccups we
are reluctant to change our positive stance. We continued with
our ‘Buy on declines’ strategy and as expected, the market was
setting up around key support of 11950 to unfold the next leg of
the rally. Yesterday’s late surge certainly validates this point and
the way both (Nifty and Bank Nifty) key indices are shaped up
now, we will not be surprised to see decent moves in next couple
of days. Going ahead, the Nifty is likely to continue its march
towards 12090 12140 and on the downside, 12000 followed
by 11930 has now become a sacrosanct support zone.
Exhibit 1: Nifty Daily Chart
Nifty Bank Outlook
-
(
31979
)
The BankNifty opened marginally negative in yesterday's session.
However, the index heavyweight such as ICICI Bank showed
tremendous strength which led to an upmove in the initial hour.
The broader market then witnessed some selling pressure which
then led to some retracement from the morning highs. But it
again recovered and rallied higher in the last hour of the trade to
end the session tad below the 32000 mark. The index witnessed
some demand at its support of '89 EMA' on the hourly chart and
in the last hour of the trade, the stocks within the sector witnessed
resumption of uptrend. We have been vocal that recent correction
as just a dip and have been advising to look for buying
opportunities. Trader are advised to continue to deploy this
strategy and trade with a positive bias. The RBI would be
announcing its monetary policy meeting outcome today which
would have an impact on stocks in this sector and thus, trader are
advised to keep a tab on the same.
Key Levels
Support 1 – 31500 Resistance 1 – 32160
Support 2 – 31444 Resistance 2 – 32400
Exhibit 2: Nifty Bank Daily Chart
Traders are advised to be with the larger trend and should ideally
refrain from taking contradictory bets against the major direction
on a positional basis. Clearly, the banking has set the tone
yesterday with private bank giant ‘ICICI Bank’ continues its
dream run to hit fresh record highs. Also, stocks from the Tata
Group’ conglomerates kept buzzing throughout the day and the
Metal space which has taken a beating in last couple of days
attracted strong buying at lower levels. Last but certainly not the
least, we continue to remain sanguine on ‘Pharma’ space and
thus, one should keep focusing on all these mentioned potential
movers.
Key Levels
Support 1 – 12000 Resistance 1 – 12090
Support 2 – 11930 Resistance 2 – 12140
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Technical & Derivatives Report
December 05, 2019
Nifty Vs OI
Views
Post last three sessions correction, we finally saw some
respite in the market. We began the session slightly
lower and saw smart buying interest as the day
progressed to march beyond 12000 mark. However, in
the midst we witnessed fresh selling from the higher
levels but this was bought into to finally conclude the
volatile day tad above 12000 with the gain of 0.40%
FIIs continued their selling streak in the cash market
segment to the tune of Rs. 781 crores. In index futures,
they sold worth Rs. 736 crores with rise in open interest,
indicating short formation in the last trading session.
We had mentioned in our previous report, that the
correction session in last few day’s was mainly due to
profit booking and not short formation. Yesterday, the
banking index took the lead and was up more than a
percent, this was supported by good amount of longs
in futures segment. However, we hardly saw any major
build-up in Nifty. In Nifty options front, we saw a
positive development as call writer of 12000-12400
ran for shelter seeing strong recovery and 11900-
12050 puts added good amount of shorts. Considering
the above data points, we maintain our optimistic
stance on market and would advise trader to trade with
a positive bias.
Comments
The Nifty futures open interest has increased by 0.05%
Bank Nifty futures open interest has increased 5.84% as
market closed at 12043.20 levels.
The Nifty December future closed with a premium of
46.60 points against a premium of 52.25 points in last
trading session. The January series closed at a premium
of 91.00 points.
The INDIA VIX has decreased from 14.56 to 13.32.
At the same time, the PCR-OI of Nifty has increased from
1.31 to 1.44.
Few of the liquid counters where we have seen high cost
of carry are DISHTV, GMRINFRA, IDEA, TATAPOWER
and HINDALCO.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
EQUITAS 14544300 16.22 105.65 3.30
LT 18518250 14.14 1285.10 -2.18
DISHTV 101169200 11.91 14.20 15.32
ESCORTS 5558300 11.67 611.25 -1.85
UJJIVAN 7688100 10.25 349.35 3.96
ZEEL 32149700 8.80 281.35 0.59
BHEL 49864200 8.56 49.95 0.00
BHARTIARTL 43796511 8.51 461.40 0.54
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
MINDTREE 1028200 -18.92 746.80 3.88
TORNTPHARM 326000 -14.77 1874.40 -2.01
YESBANK 236841000 -9.65 63.00 9.71
HEXAWARE 1311000 -8.19 339.00 3.79
APOLLOTYRE 7995000 -7.66 170.10 2.80
CADILAHC 7945200 -6.35 263.45 1.27
NIITTECH 455250 -5.53 1467.45 1.38
CUMMINSIND 1618700 -5.15 537.60 1.20
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.44 0.89
BANKNIFTY 1.29 0.95
RELIANCE 0.83 0.90
ICICIBANK 0.88 0.56
INFY 0.48 0.40
Historical Volatility
SCRIP HV
MINDTREE 28.33
APOLLOHOSP 37.61
HEXAWARE 34.79
ICICIBANK 35.86
WIPRO 21.99
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Technical & Derivatives Report
December 05, 2019
Note: Above mentioned Bullish or Bearish Spreads in Nifty (December Series) are given as an information and not as a recommendation.
Nifty Spot
=
1
2043
.20
Lot Size = 7
5
FII Statistics for
December
04
, 2019
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
2592.25 3328.38 (736.13) 153633 13115.40 2.32
INDEX
OPTIONS
390665.97 391156.29 (490.32) 549250 46370.65 1.13
STOCK
FUTURES
12755.73 12362.53 393.20
1588295 95547.44 (0.30)
STOCK
OPTIONS
4569.01 4524.38 44.63
50246 2792.57 5.19
Total 410582.96
411371.58
(788.62) 2341424
157826.06
0.31
Turnover on
December
04
, 2019
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
INDEX
FUTURES
346137 25710.18 48.86
INDEX
OPTIONS
23655256 1693170.03 91.46
STOCK
FUTURES
833425 47170.00 7.42
STOCK
OPTIONS
706240 42994.78 28.46
TOTAL 2,55,41,058
1809044.99 84.79
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 12100 136.40
47.50 52.50 12147.50
Sell 12200 88.90
Buy 12100 136.40
83.40 116.60 12183.40
Sell 12300 53.00
Buy 12200 88.90
35.90 64.10 12235.90
Sell 12300 53.00
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 12000 108.50
31.65 68.35 11968.35
Sell 11900 76.85
Buy 12000 108.50
53.15 146.85 11946.85
Sell 11800 55.35
Buy 11900 76.85
21.50 78.50 11878.50
Sell 11800 55.35
Nifty Put-Call Analysis
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December 05, 2019
Da
ily
Pivot
Levels for Nifty Constituents
Scrips S2 S1 PIVOT R1 R2
ADANIPORTS 352 360
365 373 378
ASIANPAINT 1,698 1,709
1,722 1,733 1,746
AXISBANK 721 730
739 748 756
BAJAJ-AUTO 3,202 3,227
3,252 3,277 3,302
BAJFINANCE 3,908 3,949
3,977 4,018 4,046
BAJAJFINSV 8,891 8,961
9,024 9,094 9,157
BPCL 487 494
499 506 511
BHARTIARTL 450 456
460 466 470
INFRATEL 232 241
251 259 269
BRITANNIA 3,003 3,026
3,047 3,070 3,091
CIPLA 458 464
468 474 478
COALINDIA 199 201
203 205 207
DRREDDY 2,846 2,862
2,874 2,890 2,902
EICHERMOT 20,803 21,106
21,437 21,740 22,071
GAIL 121 122
123 124 125
GRASIM 769 777
784 792 799
HCLTECH 1,110 1,118
1,124 1,132 1,138
HDFCBANK 1,225 1,238
1,248 1,261 1,270
HDFC 2,270 2,296
2,313 2,339 2,355
HEROMOTOCO 2,390 2,414
2,437 2,461 2,483
HINDALCO 190 195
199 204 208
HINDUNILVR 2,011 2,029
2,041 2,059 2,071
ICICIBANK 501 515
523 537 545
IOC 125 126
128 129 130
INDUSINDBK 1,509 1,527
1,540 1,558 1,571
INFY 687 698
704 715 721
ITC 241 242
243 244 245
JSW STEEL 241 250
257 267 273
KOTAKBANK 1,621 1,636
1,648 1,663 1,675
LT 1,263 1,274
1,293 1,304 1,323
M&M 515 520
525 530 535
MARUTI 6,981 7,029
7,099 7,147 7,217
NESTLEIND 14,120 14,213
14,294 14,387 14,468
NTPC 113 114
115 115 116
ONGC 125 128
129 132 133
POWERGRID 186 187
189 190 191
RELIANCE 1,511 1,532
1,555 1,576 1,598
SBIN 328 335
339 346 350
SUNPHARMA 427 435
440 448 453
TCS 2,032 2,055
2,069 2,092 2,105
TATAMOTORS 153 161
166 174 178
TATASTEEL 381 395
403 418 426
TECHM 737 748
755 766 773
TITAN 1,144 1,159
1,169 1,184 1,194
ULTRACEMCO 4,130 4,163
4,198 4,232 4,266
UPL 557 564
569 576 582
VEDANTA 134 139
142 147 150
WIPRO 234 238
240 244 247
YESBANK 54 59
61 65 68
ZEEL 270 276
281 287 292
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Technical & Derivatives Report
December 05, 2019
*
Research Team Tel: 022
-
39357800
Website:
www.angelbroking.com
For Technical Queries E-mail: technicalresearch-cso@angelbroking.com
For Derivatives Queries E-mail: derivatives.des[email protected]elbroking.com
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