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January 07, 2021
Technical & Derivatives Report
Nifty
Bank Out
-
(
31798)
Despite SGX Nifty indicating a nervous start, our markets opened
higher at fresh record highs. The banking index showed some
strength in the first half to almost test the 32000 mark. However
from no where, the entire market just nosedived post the mid
session. Things looked slightly bleak at one point; but fortunately
once again banking index stabilised at lower levels which was then
followed by a modest recovery in the last hour to close marginally
in the green. Surprisingly in last couple of sessions, BANKNIFTY is
outperforming the benchmark index, which is rare to see.
Yesterday, although we witnessed some cushion at lower levels,
the volatility seems to have risen significantly. Hence, for the
coming session, one should avoid creating longs until BANKNIFTY
sustains above 32000. Till then we are likely to see some pressure.
On the flipside, 31650-31500 should be seen as key support. The
weakness would trigger only after breaching the lower range of
31500.
Key Levels
Support 1 – 31650 Resistance 1 – 32000
Support 2 – 31500 Resistance 2 – 32300
Exhibit 1: Nifty Daily Chart
Se
nsex
(
48174)
/ Nifty
(
14146
)
Nifty started the session marginally positive but it then consolidated
within a narrow range for most part of the day. However, in the later
half we witnessed a sharp decline and suddenly the index sneaked
below 14050. But the index managed to recover some of the losses
in the last hour and end the session tad below 14150.
For most part of the session, we witnessed a consolidation in Nifty
whereas the Bank Nifty showed a relative outperformance and
buying interest was seen in stocks within the sector. However, the
volatility increased in the later half but still, the index managed to
recover from the lows led by the banking index. Apart from banks,
stock specific action was seen throughout the day with certain stocks
from the broader market showing good momentum and the metal
names also continued their uptrend. The broader trend continues to
remain positive and there’s no change in that. But from a near term
perspective, our market could trade within a range of 14000-14300
with some higher volatility. In such a scenario, traders should prefer
to look out for stock specific opportunities which could provide
better trade set ups. Apart from the above mentioned sectors, the
cement space witnessed some momentum in the last half an hour
and one can look for opportunities in stocks from this sector too
from a near term perspective.
Key Levels
Support 1 – 14080 Resistance 1 – 14260
Support 2 – 14000 Resistance2 – 14300
Exhibit 2: Nifty Bank Daily Chart
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Technical & Derivatives Report
January 07, 2021
Nifty Vs OI
12800
13000
13200
13400
13600
13800
14000
14200
14400
,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 1/5
(`000)
Openinterest Nifty
View
We began the session on a positive note almost around
14250 mark; but these gains were short lived as sharp profit
booking at higher levels dragged index below 14050.
Fortunately, once again 14000-14050 acted as a savior for
bulls and smart recovery led closing around 14150.
FIIs were net sellers in the cash segment to the tune of Rs.
484 crore. In index future segment, they sold worth 295
crores with decrease in open interest indicating long
unwinding in yesterday’s session.
In F&O space, we witnessed some unwinding of longs in
Nifty as open interest declined by 5.77 percent, however
longs in Bank Nifty are intact. FII's preferred some profit
booking but the quantum of sell was not high. Yesterday’s
intraday fall certainly created panic kind of situation for put
writers, as we saw decent open interest reduction in 14000-
14100 put strikes. On the other side, good amount of
writing was seen in 14200-14300 call options; which
suggests it won’t be easy for Nifty to surpass this range.
However, the overall F&O data doesn’t hint any sign of
concern yet. Thus, it’s advisable to trade with a positive bias
till the support of 13900-14000 is intact.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 5.77%
Bank Nifty futures open interest has decreased by 3.13%
as market closed at 14146.25 levels.
The Nifty January future closed with a premium of 43.20
point against a premium of 18.45 point in last trading
session. The February series closed at a premium of 77.10
point.
The INDIA VIX increased from 20.46 to 20.99.
At the same time, the PCR-OI of Nifty decreased from
1.62 to 1.25.
Few of the liquid counters where we have seen high cost
of carry are IDEA, PNB, BHARTIARTL, NATIONALUM, AND
TATACHEM.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
HDFCAMC 230200 28.75 3099.70 0.20
AARTIIND 317475 22.26 1290.60 -3.58
BATAINDIA 1260050 20.90 1658.35 3.35
POWERGRID 22860000 16.37 196.15 4.45
GODREJPROP 1325350 15.98 1460.60 3.83
NAUKRI 906750 15.88 5259.75 -3.88
TATACHEM 7088000 12.51 491.05 0.99
RAMCOCEM 2136900 11.29 802.45 1.18
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
INDUSTOWER 8957200 -15.46 261.35 1.93
SAIL 101840000 -12.65 76.20 -2.12
APOLLOHOSP 1818000 -11.81 2502.05 -0.66
SIEMENS 809600 -9.53 1618.60 0.06
CANBK 43043400 -7.76 132.10 -2.35
BEL 27588000 -7.73 133.15 1.02
IGL 6909375 -7.65 542.40 4.08
HAVELLS 3076000 -7.04 945.90 1.13
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.25 1.05
BANKNIFTY 1.05 0.95
RELIANCE 0.54 0.50
ICICIBANK 0.67 0.40
INFY 0.55 0.43
Historical Volatility
SCRIP HV
POWERGRID 35.77
VEDL 66.59
SRTRANSFIN 74.19
IGL 45.97
SHREECEM 41.36
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Technical & Derivatives Report
January 07, 2021
Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.
Nifty Spot =
14146.25
FII Statistics for January 06, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
3510.20
3805.41
(295.21) 133430
13384.04
(2.39)
INDEX
OPTIONS
468040.80
459963.04
8077.76
799243
77866.77
15.35
STOCK
FUTURES
14750.62
14653.16
97.46
1187092
97235.72
(0.55)
STOCK
OPTIONS
8079.67
8174.09
(94.42) 108496
8694.33
13.83
Total 494381.29
486595.70
7785.59
2228261
197180.86
5.18
Turnover on January 06, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 3,69,246 33771.93 5.97
Index
Options
4,10,99,400
36,88,608.28
43.54
Stock
Futures
9,40,337 78241.05 21.41
Stock
Options
15,20,324
1,30,265.70
22.95
Total
4,39,29,307
39,30,886.96
41.81
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 14200 256.45
52.50 47.50 14252.50
Sell 14300 203.95
Buy 14200 256.45
98.00 102.00 14298.00
Sell 14400 158.45
Buy 14300 203.95
45.50 54.50 14345.50
Sell 14400 158.45
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 14100 227.90
35.95 64.05 14064.05
Sell 14000 191.95
Buy 14100 227.90
64.65 135.35 14035.35
Sell 13900 163.25
Buy 14000 191.95
28.70 71.30 13971.30
Sell 13900 163.25
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
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Technical & Derivatives Report
January 07, 2021
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
482
489
497
505
513
ASIANPAINT 2,760 2,783
2,803
2,825
2,845
AXISBANK
639
647
657
665
675
BAJAJ-AUTO 3,384 3,423
3,475
3,515
3,566
BAJFINANCE 4,885 4,958
5,063
5,136
5,241
BAJAJFINSV 8,510 8,648
8,774
8,912
9,038
BPCL
375
381
389
395
403
BHARTIARTL
505
515
523
534
542
BRITANNIA 3,459 3,499
3,551
3,591
3,643
CIPLA
806
815
825
834
844
COALINDIA
132
134
135
137
139
DIVISLAB 3,788 3,834
3,862
3,908
3,935
DRREDDY 5,187 5,238
5,276
5,327
5,365
EICHERMOT 2,580 2,613
2,642
2,675
2,704
GAIL
128
131
134
137
139
GRASIM
942
963
976
998
1,011
HCLTECH
949
964
981
995
1,013
HDFCBANK 1,398 1,409
1,425
1,436
1,451
HDFCLIFE
700
709
715
725
730
HDFC 2,595 2,617
2,641
2,663
2,687
HEROMOTOCO 3,007 3,045
3,084
3,123
3,162
HINDALCO
243
251
256
263
268
HINDUNILVR 2,375 2,396
2,423
2,444
2,471
ICICIBANK
530
538
544
553
559
IOC
92
93
94
95
97
INDUSINDBK
895
909
923
936
950
INFY 1,250 1,266
1,284
1,300
1,318
ITC
200
203
207
210
214
JSW STEEL
390
396
402
407
413
KOTAKBANK 1,935 1,953
1,966
1,983
1,997
LT 1,285 1,299
1,315
1,329
1,345
M&M
722
729
738
745
754
MARUTI 7,451 7,540
7,644
7,733
7,838
NESTLEIND 18,345
18,430
18,515
18,600
18,685
NTPC
96
97
98
99
100
ONGC
94
96
98
99
101
POWERGRID
183
190
194
200
204
RELIANCE 1,868 1,891
1,928
1,952
1,989
SBILIFE
895
903
909
917
923
SHREECEM 23,443
24,134
24,541
25,231
25,638
SBIN
277
281
285
289
293
SUNPHARMA
589
597
604
612
619
TCS 2,991 3,021
3,067
3,098
3,144
TATAMOTORS
188
192
195
198
202
TATASTEEL
664
674
685
695
707
TECHM
960
978
1,002
1,021
1,045
TITAN 1,526 1,549
1,585
1,609
1,645
ULTRACEMCO 5,237 5,343
5,406
5,511
5,574
UPL
459
466
474
480
489
WIPRO
395
401
409
415
423
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Technical & Derivatives Report
January 07, 2021
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: techni[email protected]lbroking.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.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com