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Technical &
Derivatives Report
November 06, 2020
Nifty
Bank Out
look
-
(
26313
)
Bank Nifty index too opened with a significant gap up above the
26000 mark and continued its uptrend to end with gains of over a
couple of percent.
Since last one and a half month, the banking space has seen good
buying interest and has shown a good outperformance to the
benchmark. Infact, with the global market rallying, the Bank Nifty has
accelerated the momentum and has gained 10 percent in this week
so far. While many other sectoral indices have reached around their
pre-Covid levels, Bank Nifty still has a long way to go to recoup all
those losses. However, the recent buying momentum clearly
indicates that market participants are much optimistic on the sector
now and hence it is catching up to cover its underperformance till
the month of September. Thus, until there are any cautious signs on
charts, we continue with our positive stance on this sector and
advise traders to trade with a positive bias. The immediate support
for the index is placed in the range of 26000-25900 whereas
resistances are seen around 26550 and 26800.
Key Levels
Support 1 – 26000 Resistance 1 – 26550
Support 2 – 25900 Resistance 2 – 26800
Exhibit 1: Nifty Daily Chart
Se
nsex
(
41340)
/ Nifty
(
12120
)
After last week’s weakness, our markets stabilized this week and in fact,
it just took off in the last three days. This is mainly on the back of
strong recovery in US markets ahead of the US election verdict, as the
market seems to have absorbed most of the uncertainty from the
event. Due to spectacular overnight rally in global bourses and the
firmness yesterday morning resulted in a massive bump up at the
opening well above the 12000 mark for Nifty. Post the initial trade, the
index consolidated with a positive bias to conclude the weekly expiry
well above 12100.
If we look back now, we can see how our markets were tentative four
days back and we are now very much in a comfortable position, back to
pre-COVID levels. This is a remarkable achievement after seeing some
unprecedented things in the last seven months. Now, with reference to
our recent commentary, we were quite vocal on the fact that we remain
hopeful and expect a recovery as long as the sacrosanct support zone
of 11600 11500 is not violated. Also the way we moved in the last
couple of days, we anticipated a possible breakout in the upward
direction. We have finally broken out from some crucial resistance and
hence, looking at the price behavior, we expect this northward move to
continue towards 12250 12400 now. But since, the actual verdict is
yet to come; we cannot just overlook this development. Traders should
keep a close track of it and how markets react post the outcome. But
despite this, we still believe that in case of any weakness 12000
11900 should now act as a sheet anchor for the bulls.
Exhibit 2: Nifty Bank Daily Chart
Yesterday
, almost all sectors participated in the rally, which is always
considered a healthy sign for the market. Also, we would like to
highlight that the NIFTY MIDCAP 50 index which was consolidating and
interestingly placed since the last few days, has finally confirmed a
huge breakout on the daily chart. Mostly it is observed that Mid and
Small cap indices confirm a bigger breakout only when the market
feels that the uncertainty is behind us and is likely to witness some
strong rally in the near future. Going by this logic, it adds more
conviction and hence, we expect some encouraging moves to come in
the broader market.
.Key Levels
Support 1 – 12000 Resistance 1 – 12250
Support 2 – 11900 Resistance2 – 12325
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Technical & Derivatives Report
November 06, 2020
Nifty Vs OI
11300
11400
11500
11600
11700
11800
11900
12000
12100
12200
,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 11/5
(`000)
Openinterest Nifty
View
s
We started yesterday’s session above the much
awaited psychological mark of 12000. As the day
progressed, we witnessed follow-up buying to
bring index above 12100. The Nifty concluded yet
another day in green with the gains of 212 points.
FIIs were net buyers in the cash segment to the
tune of Rs. 741 crores. In index future segment,
they bought worth Rs. 3441 crores with rise in
open interest indicating addition of meaningful
long positions 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 the system.
In options front, build-up was scattered between
12100-12800 call options. On the other side, good
amount of writing was seen in 12000-12100 put
options. Now, the maximum open interest
concentration for the current weekly series has
shifted higher to 12800 call and 12000 put option;
which is a sign of further strenght. Considering the
above data, we continue with our optimistic
stance on market and soon expect extension of
recent rally towards life time high.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 8.34%
Bank Nifty futures open interest has increased by
11.07% as market closed at 12120.30 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 23.20 to 20.96.
At the same time, the PCR-OI of Nifty increased from
1.54 to 1.68.
Few of the liquid counters where we have seen high cost
of carry are IDEA, PEL, ADANIENT, VEDL and SUNTV.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
VOLTAS 3044000 43.86 741.50 2.46
SAIL 66500000 34.93 38.25 10.33
PETRONET 10530000 21.33 225.35 -0.49
GODREJPROP 1761500 20.18 912.15 -6.02
PAGEIND 88110 18.48 21005.60 3.49
AMARAJABAT 1043000 16.67 801.15 1.84
M&MFIN 19796112 15.03 128.25 1.22
HINDALCO 31802800 12.52 187.35 6.15
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
MUTHOOTFIN 2731500 -13.16 1219.40 5.47
AMBUJACEM 16206000 -7.28 255.75 3.14
PIDILITIND 3300000 -7.08 1589.40 1.37
PVR 1943832 -6.57 1219.10 11.03
RELIANCE 38454540 -6.38 1955.00 2.07
ESCORTS 2564650 -5.99 1254.15 1.72
COALINDIA 35074700 -5.85 119.85 4.31
UPL 20085000 -5.33 418.40 4.18
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.68 1.09
BANKNIFTY 1.58 0.91
RELIANCE 0.51 0.55
ICICIBANK 0.82 0.70
INFY 0.51 0.47
Historical Volatility
SCRIP HV
SRF 52.16
HINDPETRO 59.29
SAIL 65.88
PVR 64.94
NATIONALUM 52.74
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Technical & Derivatives Report
November 06, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (November Series) are given as an information and not as a recommendation.
Nifty Spot =
12120.30
FII Statistics for November 05, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
7194.15 3753.16 3440.99
121871 10475.68 8.96
INDEX
OPTIONS
394797.92 391891.00 2906.92
638207 55463.27 (22.37)
STOCK
FUTURES
16150.94 15562.80 588.14
1221896 84649.20 1.47
STOCK
OPTIONS
5387.08 5403.18 (16.10) 65262 4619.66 5.71
Total 423530.09
416610.14
6919.95
2047236
155207.81
(6.94)
Turnover on November 05, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
4,57,905 34407.52 -24.39
Index
Options
5,97,60,755
43,54,637.38
90.04
Stock Futures
8,65,309 60240.38 -6.29
Stock
Options
11,47,315 83960.06 -13.16
Total 6,22,31,284
45,33,245.34
81.48
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 12100 233.90
55.00 45.00 12155.00
Sell 12200 178.90
Buy 12100 233.90
102.65 97.35 12202.65
Sell 12300 131.25
Buy 12200 178.90
47.65 52.35 12247.65
Sell 12300 131.25
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 12100 193.25
36.60 63.40 12063.40
Sell 12000 156.65
Buy 12100 193.25
66.15 133.85 12033.85
Sell 11900 127.10
Buy 12000 156.65
29.55 70.45 11970.45
Sell 11900 127.10
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300 12400 12500
Call Put
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Technical & Derivatives Report
November 06, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
359
364
369
374
380
ASIANPAINT 2,161 2,199
2,223
2,261
2,285
AXISBANK
522
530
536
545
551
BAJAJ-AUTO 2,906 2,928
2,949
2,971
2,992
BAJFINANCE 3,529 3,633
3,692
3,795
3,854
BAJAJFINSV 5,758 5,907
5,994
6,142
6,229
BPCL
344
355
362
373
380
BHARTIARTL
448
453
457
462
467
BRITANNIA 3,434 3,466
3,498
3,531
3,563
CIPLA
772
783
789
800
807
COALINDIA
113
117
119
122
124
DIVISLAB 3,132 3,171
3,206
3,245
3,280
DRREDDY 4,883 4,921
4,960
4,998
5,037
EICHERMOT 2,082 2,101
2,122
2,140
2,161
GAIL
82
85
86
89
91
GRASIM
778
791
801
814
824
HCLTECH
820
832
841
853
862
HDFCBANK 1,242 1,256
1,266
1,279
1,290
HDFCLIFE
582
587
595
600
607
HDFC 2,066 2,083
2,102
2,119
2,137
HEROMOTOCO 2,887 2,915
2,956
2,985
3,025
HINDALCO
175
181
184
191
194
HINDUNILVR 2,041 2,072
2,092
2,122
2,143
ICICIBANK
429
434
440
445
451
IOC
77
79
79
81
81
INDUSINDBK
658
686
707
735
755
INFY 1,085 1,094
1,109
1,118
1,133
ITC
169
172
173
176
178
JSW STEEL
314
321
325
332
336
KOTAKBANK 1,615 1,645
1,663
1,693
1,710
LT
939
948
954
964
970
M&M
595
598
603
607
611
MARUTI 6,934 7,013
7,059
7,139
7,184
NESTLEIND 16,836
17,028
17,214
17,407
17,592
NTPC
85
86
86
87
88
ONGC
65
67
67
68
69
POWERGRID
175
177
178
180
182
RELIANCE 1,920 1,938
1,949
1,967
1,978
SBILIFE
788
796
802
810
815
SHREECEM 21,608
21,924
22,126
22,442
22,644
SBIN
212
215
218
222
224
SUNPHARMA
498
505
510
517
521
TCS 2,645 2,665
2,688
2,708
2,731
TATAMOTORS
135
136
137
138
139
TATASTEEL
402
414
421
433
440
TECHM
825
833
841
849
857
TITAN 1,192 1,217
1,235
1,261
1,279
ULTRACEMCO 4,510 4,564
4,599
4,653
4,688
UPL
400
409
414
424
429
WIPRO
341
343
346
348
351
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Technical & Derivatives Report
November 06, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: technicalresearc[email protected]
For Derivatives Queries E-mail: d[email protected]king.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[email protected]ing.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com