Technical & Derivatives Report
February 07, 2018
Sensex (34196) / Nifty (10498)
Exhibit 1: Nifty Daily Chart
After enjoying a good Bull Run in last fifteen months, the US
markets finally saw some decent profit booking in last 3 - 4 days.
However, Monday’s mammoth intraday fall of more than 1000
points was one of the historical one as very seldom we see ‘Dow
Jones’ correcting to such a great extent. This was mainly on the
back of mounting concern over rising bond yields and hence, has
certainly spooked the entire equity markets across the globe. We
were no exception to this as we saw massive gap down opening
over 300 points, which was in-line with what SGX Nifty was
suggesting. During the remaining part, we saw benchmark index
recovering partially from early morning chaos and eventually
closed at the 10500 mark.
As we all know, markets always find its own reason to correct and
this time it was LTCG followed by global turmoil became the
catalyst for this surprising correction. When such down move
starts, it can be so intimidating as the velocity of these corrections
would be much faster than the momentum in the rallies. Now,
yesterday although there was a threatening start for the markets,
We reiterate that traders need to be very selective as the
the intraday picture was not as bad as one would have concerned
volatility is likely to remain on the higher side and also with
of. On such days, volatility is generally on the extreme side and
such global issues; the opening direction is mainly dictated by
hence, we saw strong recovery in the latter half which was then
the overnight cues from the global markets. Hence, one should
followed by 100 points dip to close around its important junction
avoid taking any kind of undue risks and should rather remain
of 10500. Going by the weekly chart, the near term trend
light on positions. In fact, it would be a prudent ploy to stay
remains down as long as Nifty maintains its position below
light and avoid making any kind of bottom fishing till the
10750 - 10850. Due to yesterday’s volatility, the trading range
definite signals emerge.
for coming session has widened drastically. On the higher side,
10594 - 10679 would be seen as intraday hurdles; whereas, the
immediate support zone is placed at 10423 - 10347.
Key Levels
Support 1 - 10423
Resistance 1 - 10594
Support 2 - 10347
Resistance 2 - 10679
Nifty Bank Outlook - (25811)
Exhibit 2: Nifty Bank Daily Chart
Tracking the negative global cues, the Nifty Bank index opened
with a huge gap down of 958 points yesterday and almost tested
the 25000 mark in opening ticks. However, the index pulled back
higher post noon and at one point of time, recovered entire loss
to trade back in the green. Eventually, the index ended the volatile
session with a loss of 1.10% over its previous session close.
Yesterday’s volatility was certainly a nightmare for traders as the
markets haven't witnessed such higher volatility in the recent past.
As the risk for short-term traders increases significantly during
times of such swings, it is a prudent strategy to wait on sidelines
or trade with a lower exposure. The short-term trend for the index
continues to be corrective in nature and positionally, the index
could head towards its daily '200 SMA' which is placed around
24510.
Key Levels
Support 1 - 25430
Resistance 1 - 26200
Support 2 - 25350
Resistance 2 - 26250
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Technical & Derivatives Report
February 07, 2018
Comments
Nifty Vs OI
The Nifty futures open interest has increased by 2.82%
BankNifty futures open interest has decreased by 1.58%
as market closed at 10498.25 levels.
The Nifty February future closed with a premium of
15.05 points against a premium of 18.05 points in last
trading session. The March series closed at a premium of
31.80 points.
The INDIA VIX has increased from 16.05 to 20.01. At the
same time, the PCR-OI of Nifty has increased from 1.10
to 1.13 level.
Few of the liquid counters where we have seen high cost
of carry are SHREECEM, SBIN, DHFL, WOCKPHARMA
and BEML.
Views
OI Gainers
FIIs were net sellers in cash market segment and index
OI
PRICE
SCRIP
OI
PRICE
futures. They sold equities to the tune of Rs. 2326 crores.
CHG. (%)
CHG. (%)
While, they were net sellers in index futures of Rs. 1638
MINDTREE
1908000
17.43
723.35
2.24
crores with rise in open interest, indicating addition of
GRASIM
3753750
10.83
1067.80
-3.23
fresh shorts in previous trading session.
RAMCOCEM
524800
10.07
726.10
0.84
On options front, they were net buyers of Rs. 2836 crores
MOTHERSUMI
12387200
5.65
356.20
0.20
with rise in OI. As far as Nifty options activities are
SREINFRA
20300000
5.45
76.50
-5.26
concerned, we saw fresh writing in 10500-10700 call
ESCORTS
3534300
5.38
895.95
1.17
options; followed by decent unwinding in the deep OTM
ICICIPRULI
4525300
5.10
409.80
-3.59
strikes. On the flip side, 9800-10300 put options were
JISLJALEQS
41220000
4.69
114.20
-6.55
quite active; wherein,
10000 strike added massive
positions. Now, this has resulted highest open interest
concentration in put options shifting lower to 10000.
OI Losers
Post budget, we have been consistently seeing good
OI
PRICE
SCRIP
OI
PRICE
amount of long unwinding as Nifty futures OI plunged
CHG. (%)
CHG. (%)
more than 10% in last three trading session. Yesterday,
UBL
989100
-12.45
1121.05
-5.36
we saw fresh short formation in index futures. FIIs too
EQUITAS
23078400
-10.43
137.00
-1.47
have been unwinding their longs and they also added
AMARAJABAT
1582000
-9.71
763.75
-2.35
fresh short positions in index futures; resulting their ‘Long
CANBK
11371200
-9.19
319.00
0.16
Short Ratio’ declining from 80% to 63%. In options front
VGUARD
2385000
-9.14
213.05
-0.14
too, they bought index put options along with writing in
MRF
52245
-8.75
68477.20
-0.27
index call options. Considering the quantum of profit
SBIN
56760000
-7.91
293.55
-1.61
booking, we would advise traders to lighten up their long
INDIACEM
23866500
-7.29
150.35
-2.21
as we may see further pain going ahead.
Put-Call Ratio
Historical Volatility
SCRIP
PCR-OI
PCR-VOL
SCRIP
HV
NIFTY
1.13
0.93
LUPIN
41.39
BANKNIFTY
0.82
0.59
TATAMOTORS
40.47
RELIANCE
0.36
0.49
HCLTECH
31.81
ITC
0.36
0.43
TATAMTRDVR
40.01
TATAMOTORS
0.44
0.40
GLENMARK
29.76
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Technical & Derivatives Report
February 07, 2018
FII Statistics for February 06, 2018
Turnover on February 06, 2018
Open Interest
No. of
Turnover
Change
Detail
Buy
Sell
Net
Instrument
Value
Change
Contracts
( in Cr. )
(%)
Contracts
(in Cr.)
(%)
INDEX
INDEX
5707.45
7345.69
(1638.23)
225465
18270.33
6.99
622313
52925.37
124.19
FUTURES
FUTURES
INDEX
INDEX
129441.34
126605.14
2836.21
963238
78384.50
8.21
8698356
773664.16
67.89
OPTIONS
OPTIONS
STOCK
16169.79
14733.16
1436.63
1063515
75111.83
(0.20)
STOCK
FUTURES
992129
70183.92
16.02
FUTURES
STOCK
STOCK
9939.15
9980.21
(41.07)
92795
6738.22
4.27
618444
47557.76
6.46
OPTIONS
OPTIONS
Total
161257.73
158664.20
2593.53
2345013
178504.88
3.97
TOTAL
10931242
944331.22
60.17
Nifty Spot = 10498.25
Lot Size = 75
Bull-Call Spreads
Bear-Put Spreads
Action
Strike
Price
Risk
Reward
BEP
Action
Strike
Price
Risk
Reward
BEP
Buy
10500
125.30
Buy
10500
103.35
44.95
55.05
10544.95
28.15
71.85
10471.85
Sell
10600
80.35
Sell
10400
75.20
Buy
10500
125.30
Buy
10500
103.35
76.85
123.15
10576.85
49.15
150.85
10450.85
Sell
10700
48.45
Sell
10300
54.20
Buy
10600
80.35
Buy
10400
75.20
31.90
68.10
10631.90
21.00
79.00
10379.00
Sell
10700
48.45
Sell
10300
54.20
Note: Above mentioned Bullish or Bearish Spreads in Nifty (February Series) are given as an information and not as a recommendation.
Nifty Put-Call Analysis
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Technical & Derivatives Report
February 07, 2018
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
377
391
401
414
424
AMBUJACEM
244
250
253
259
262
ASIANPAINT
1,072
1,091
1,109
1,128
1,146
AUROPHARMA
573
585
595
607
617
AXISBANK
515
539
558
583
601
BAJAJ-AUTO
2,948
3,044
3,101
3,197
3,254
BAJFINANCE
1,448
1,557
1,620
1,729
1,793
BPCL
457
462
470
475
483
BHARTIARTL
406
422
435
452
464
INFRATEL
320
334
341
355
363
BOSCHLTD
19,050
19,333
19,617
19,900
20,184
CIPLA
550
556
564
570
578
COALINDIA
275
283
287
295
299
DRREDDY
1,953
2,020
2,072
2,138
2,190
EICHERMOT
25,802
26,653
27,352
28,203
28,902
GAIL
431
442
450
461
469
HCLTECH
936
944
956
965
977
HDFCBANK
1,807
1,854
1,883
1,930
1,959
HDFC
1,736
1,766
1,788
1,818
1,839
HEROMOTOCO
3,404
3,473
3,519
3,588
3,634
HINDALCO
226
236
242
252
258
HINDPETRO
363
370
376
383
389
HINDUNILVR
1,276
1,302
1,325
1,351
1,375
IBULHSGFIN
1,161
1,224
1,270
1,332
1,378
ICICIBANK
303
317
328
342
353
IOC
396
399
403
406
409
INDUSINDBK
1,625
1,664
1,683
1,721
1,740
INFY
1,078
1,094
1,111
1,128
1,145
ITC
264
270
273
279
283
KOTAKBANK
1,003
1,019
1,034
1,050
1,065
LT
1,261
1,305
1,339
1,383
1,417
LUPIN
760
775
805
821
851
M&M
718
734
747
763
776
MARUTI
8,476
8,743
8,928
9,195
9,380
NTPC
159
162
164
167
169
ONGC
177
181
184
188
191
POWERGRID
188
191
194
197
199
RELIANCE
861
878
888
905
915
SBIN
276
284
291
298
305
SUNPHARMA
523
537
546
560
569
TCS
2,928
2,962
3,020
3,055
3,112
TATAMOTORS
347
361
371
385
394
TATASTEEL
612
638
659
685
705
TECHM
589
598
610
618
630
ULTRACEMCO
3,886
3,989
4,052
4,155
4,218
UPL
666
683
697
714
729
VEDANTA
301
311
320
330
339
WIPRO
288
291
294
297
300
YESBANK
316
328
335
346
354
ZEEL
550
561
569
580
588
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Technical & Derivatives Report
February 07, 2018
Research Team Tel: 022 - 39357800
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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