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Technical & Derivatives Report
May 06, 2020
Nifty
Bank Out
-
(
19272
)
Bank Nifty Index too started on a positive note however the rub-
off effect of the previous session pulled the index lower in the
second half. The Nifty Bank underperformed and ended with a
loss of 2.39% at 19272.
On the daily chart, the bank index broke below the ascending
trendline which was previously acting as support and now it
seems 20200 20500 has now turned into stiff resistance. As
long prices stay below the mentioned levels the bias is likely
to remain weak and on the lower side the levels to watch out
are placed at 18700 18000 levels. Traders are advised to
keep positions light as we are again witnessing an increase in
volatility.
Key Levels
Support 1 – 18700 Resistance 1 – 20200
Support 2 – 18000 Resistance 2 – 20500
Exhibit 1: Nifty Daily Chart
Sensex (31454) / Nifty (9206)
Monday’s massive cut was followed by a good bump up at the
opening; courtesy to some relief move in global peers. This was
followed by some consolidation in the first half as index kept
flirting slightly above Monday’s close. However, in the latter half,
the selling momentum aggravated across the board and as a
result, the Nifty not only pare down all gains but also went on to
close with a cut of nearly a percent.
Clearly, our markets are struggling at higher levels and
yesterday, despite global peers suggesting some strength, we
completely shrugged them off towards the latter part of the
session. The major culprit in this late sell off was the financial
stocks. Some of the marquee banking names along with NBFC
stocks, started falling ferociously and this development weighed
down heavily on our market. Now, with yesterday’s move, the
bears have put up a sturdy wall around 9400-9450 and till the
time we are trading below it, things are going to be a bit difficult
for the optimists. Before this, the intraday resistance can be seen
at 9300-9350.
Key Levels
Support 1 – 9100 Resistance 1 – 9300
Support 2 – 9000 Resistance 2 – 9350
Exhibit 2: Nifty Bank Daily Chart
On the downside, we have now reached crucial support zone at
9200. A follow through selling below this would extend the
correction back to 9100-9000. Since, market is struggling at this
moment, traders are advised not to take aggressive longs till
the time we do not surpass 9400-9450. At present, one needs
to stay light and can keep focusing on stock specific moves in
both directions.
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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 4/17 4/21 4/23 4/27 4/29 5/4
(`000)
Openinterest Nifty
V
iew
s
Yesterday, Nifty started on a positive note however it
struggled at the higher levels and witnessed a selloff in
the second half. Nifty erased all the morning gains and
ended with loss of around a percent tad around 9200
levels.
FIIs were net sellers in the cash market segment to the
tune of Rs. 1059 crores. In index futures, the activity
was muted as they bought 179 crores with increase in
open interest.
Post opening on a positive note, the indices corrected
in yesterday's session wherein Nifty witnessed some
open interest addition whereas Bank Nifty saw
unwinding of long positions. FII were net sellers in the
cash segment to the tune of more than 1000 crores for
the second continuous session. In options segment,
9400 and 9500 call options saw open interest addition
indicating resistance in this range, whereas support for
Nifty as per options data is placed around 9000.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 4.85%
Bank Nifty futures open interest has decreased by 18.35
% as market closed at 9205.60 levels.
The Nifty May future closed with a premium of 3 point
against a discount of 7.60 point in last trading session.
The June series closed at a premium of 14.3 points.
The INDIA VIX has decreased from 43.67 to 43.61.
At the same time, the PCR-OI of Nifty increased from
1.46 to 1.61.
Few of the liquid counters where we have seen high cost
of carry are, ADANIPOWER, HINDALCO, CHOLAFIN,
BPCL, and MFSL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ACC 1826000 -14.30 1179.10 4.12
APOLLOTYRE 5238000 -15.86 96.30 0.68
MFSL 1443000 -27.17 469.80 -0.82
IDEA 345940000 -29.75 4.20 0.00
BOSCHLTD 145400 -1.46 10613.85 4.99
ESCORTS 1960200 -17.50 713.35 -0.32
TORNTPOWER 1437000 -18.12 330.30 2.29
GODREJPROP 127400 -13.66 677.55 2.21
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CHOLAFIN 4787500 -25.63 159.45 6.31
INDUSINDBK 15274800 -10.40 468.15 -0.71
GLENMARK 3542000 -3.58 337.05 2.30
KOTAKBANK 7794800 -2.05 1357.20 1.88
TVSMOTOR 3753000 -18.28 328.35 6.22
PEL 2872773 -6.61 988.75 3.90
ASHOKLEY 30744000 -8.70 52.35 9.86
BHARATFORG 5748600 -11.58 309.20 9.52
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
MCDOWELL-N 67.23
UBL 57.90
VOLTAS 59.08
MARICO 57.10
JUSTDIAL 122.75
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Note: Above mentioned Bullish or Bearish Spreads in Nifty (May Series) are given as an information and not as a recommendation.
Nifty Spot =
9205.60
FII Statistics for May 05, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
6126.27
5946.84
179.43
109154
6428.35
2.03
INDEX
OPTIONS
176366.40
176947.59
(581.19) 464709
29997.85
4.25
STOCK
FUTURES
13113.42
13288.83
(175.41) 1462362
71502.92
0.94
STOCK
OPTIONS
2789.76
2771.87
17.89
33862
1659.27
29.78
Total 198395.85
198955.13
(559.28) 2070087
109588.39
2.09
Turnover on May 05, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 6,16,615 32039.73 12.18
Index Options 1,71,28,681
8,92,666.49 51.53
Stock Futures 8,98,108 44405.32 -4.48
Stock Options 7,21,681 39128.26 -9.48
Total 1,93,65,085
10,08,239.80 42.53
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 9200 371.90
55.15 44.85 9255.15
Sell 9300 316.75
Buy 9200 371.90
104.80 95.20 9304.80
Sell 9400 267.10
Buy 9300 316.75
49.65 50.35 9349.65
Sell 9400 267.10
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 9200 364.00
41.35 58.65 9158.65
Sell 9100 322.65
Buy 9200 364.00
80.30 119.70 9119.70
Sell 9000 283.70
Buy 9100 322.65
38.95 61.05 9061.05
Sell 9000 283.70
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
8500 8600 8700 8800 8900 9000 9100 9200 9300 9400 9500 9600 9700 9800
Call Put
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Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
255
259
265
270
276
ASIANPAINT 1,515 1,567
1,630
1,682
1,745
AXISBANK
366
377
398
410
430
BAJAJ-AUTO 2,349 2,386
2,438
2,474
2,526
BAJFINANCE 1,907 1,955
2,045
2,093
2,183
BAJAJFINSV 4,410 4,519
4,720
4,829
5,030
BPCL
333
340
352
359
371
BHARTIARTL
508
518
536
546
564
INFRATEL
154
162
173
181
192
BRITANNIA 2,870 2,924
3,025
3,080
3,181
CIPLA
577
587
605
615
633
COALINDIA
131
134
141
144
151
DRREDDY 3,695 3,764
3,875
3,945
4,056
EICHERMOT 13,383
13,597
13,880
14,094
14,377
GAIL
87
89
93
94
98
GRASIM
458
465
476
483
495
HCLTECH
508
514
522
528
536
HDFCBANK
885
898
921
934
957
HDFC 1,621 1,655
1,712
1,747
1,804
HEROMOTOCO
1,881
1,923
1,987
2,029
2,093
HINDALCO
111
114
117
119
123
HINDUNILVR 1,977 2,009
2,065
2,097
2,153
ICICIBANK
318
324
336
343
355
IOC
76
77
80
81
83
INDUSINDBK
402
410
425
433
447
INFY
661
667
676
683
692
ITC
169
171
174
177
180
JSW STEEL
157
161
166
169
175
KOTAKBANK 1,178 1,208
1,255
1,286
1,333
LT
812
825
847
859
882
M&M
350
359
370
379
391
MARUTI 4,657 4,743
4,886
4,973
5,116
NESTLEIND 16,849
17,135
17,386
17,672
17,923
NTPC
89
91
93
95
97
ONGC
76
77
80
81
83
POWERGRID
158
161
163
166
169
RELIANCE 1,430 1,446
1,462
1,477
1,494
SHREECEM 17,904
18,208
18,554
18,858
19,204
SBIN
161
166
173
178
186
SUNPHARMA
442
449
461
468
479
TCS 1,896 1,9
14
1,946
1,964
1,996
TATAMOTORS
76
79
83
85
89
TATASTEEL
264
268
275
280
287
TECHM
488
494
504
510
520
TITAN
859
873
891
905
923
ULTRACEMCO 3,197 3,241
3,318
3,362
3,439
UPL
370
379
393
402
416
VEDANTA
76
77
80
82
85
WIPRO
175
180
187
191
199
ZEEL
142
145
150
154
159
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Technical & Derivatives Report
May 06, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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