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February 08, 2021
Technical & Derivatives Report
Nifty
Bank Out
-
(
35654)
On Friday, the Bank Nifty started with a huge gap up opening and the
upmove extended towards 36615. However, post the RBI policy the
bank index gradually came lower to erase around 1000 points from
the morning highs to eventually end with gains of 0.88% at 35654.
It was certainly a mesmerizing week for the banking and financial
space as the bank nifty moved from is previous week close of 30565
to intraweek high of 36615 and to eventually end with whooping
gains of 16.65%. Now due to this strong move the oscillators were in
deep overbought territory and hence we witnessed some profit
booking during fag end resulting a gravestone doji on the daily chart.
For the coming next few sessions if prices sustain below the low of the
mentioned doji pattern at 35545 we may see some price correction in
the bank index. In such scenario, 34980 - 34500 will be the immediate
support. On the flip side, 36000 and 36615 is the immediate
resistance zone. Traders are advised to continue with stock specific
opportunities that are likely to give outperforming opportunities.
Key Levels
Support 1 – 34980 Resistance 1 – 36000
Support 2 – 34500 Resistance 2 – 36615
Exhibit 1: Nifty Daily Chart
Se
nsex
(
50732)
/ Nifty
(
14924
)
The year 2020 was full of unprecedented things; but 2021 also seem to
be following the similar footsteps. Fortunately, it surprised us pleasantly
as Finance Minister stood by her words and really presented ‘Like never
before’ Union Budget on Monday. Since the market had lightened up
ahead of the event, market participants had all the reason to grab this
opportunity with both hands and hence, we could see a gargantuan
move to clock probably biggest gains ever on the budget day. Market
was not done yet, in fact the exuberance level kept on rising as the week
progressed to clock one of the biggest weekly gains to register new high
tad above the magical figure of 15000.
Who would have thought during the previous weekend (especially after
having a terrible week of trade), Nifty and other major indices would
have such a mesmerizing rally to reach record highs so soon. Many
would be claiming now but practically, there would be hardly anyone
who could have anticipated this. Honestly, we expected Nifty to move
towards 14000 14200 but not beyond considering the previous week’s
price action. But the way it conquered 14200 with some authority, there
was no doubt left after Monday’s session, we are heading towards record
highs. The real charioteer of this spellbinding move was the financial
space. Some of the banking giants took off during the week as if there
is no tomorrow. Now, markets have hastened towards their near term
targets with this fast and furious rally so soon. Hence, it would be
interesting to see how it behaves in this week. As far as levels are
concerned, 15050 15200 – 15400 are the important Fibonacci levels
in the upward direction; whereas on the lower side, 14700 – 14500 are
to be seen as key supports.
Exhibit 2: Nifty Bank Daily Chart
Although, the banking stocks have seen rarest weekly spurt
during the
week, some profit booking was witnessed on Friday after a marathon
rally. This led to a formation of ‘Gravestone Doji’ pattern on the daily
chart of BANKNIFTY. The said pattern needs confirmation of price
trading below the low of the candle i.e. 35545 in this case. If this happens
then we would probably see some profit booking in this week. Traders
should take a note of this and ideally it’s advisable to follow stock centric
approach.
Key Levels
Support 1 – 14800 Resistance 1 – 15000
Support 2 – 14770 Resistance2 – 15070
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Technical & Derivatives Report
February 08, 2021
Nifty Vs OI
13000
13200
13400
13600
13800
14000
14200
14400
14600
14800
15000
15200
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1/21 1/25 1/28 2/1 2/3 2/5
(`000)
Openinterest Nifty
View
After the recent corrective phase, the indices rallied sharply
post the announcement of Budget due to a combination of
short covering as well as fresh long formation. The indices
then continued to move higher throughout the week and
Nifty tested the 15000 mark on the Friday.
FIIs were net buyers in the cash segment to the tune of
Rs. 1462 crore. In index future segment, they sold worth Rs.
461 crore with decrease in open interest indicating long
unwinding on Friday.
During the last week, FII’s were buyers in cash segment but
their net activity was muted in index futures. Majority of
their positions are still on the long side with their ‘Long
Short Ratio’ over 62 percent. In last couple of sessions,
stronger hands have preferred some profit booking and
hence, this week may not be as robust as last week. The
supports for this week are placed around 14800 followed by
14600 whereas resistance is seen around 15200. Traders are
advised to trade with a stock specific approach and also
book partial profits on existing positions on rise and take
some money off the table.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 1.28%
Bank Nifty futures open interest has increased by 0.24%
as market closed at 14924.25 levels.
The Nifty February future closed with a premium of 44.15
point against a discount of 0.3 point in last trading
session. The March series closed at a premium of 79.5
point.
The INDIA VIX increased from 23.12 to 23.41.
At the same time, the PCR-OI of Nifty decreased from
1.51 to 1.41.
Few of the liquid counters where we have seen high cost
of carry are BHARTIARTL, TATAMOTORS, RAMCOCEM,
ASHOKLEY, AND NATIONALUM.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ZEEL 38241000 18.09 215.30 -13.89
RBLBANK 20772700 17.68 251.10 -3.13
ASIANPAINT 7290300 12.54 2376.75 -1.08
BHEL 164115000 10.60 43.55 2.94
BANDHANBNK 28438200 10.47 329.55 -4.66
IDFCFIRSTB 193914000 8.38 48.30 -2.75
L&TFH 36517008 8.37 90.50 -3.74
M&MFIN 13532000 6.18 176.95 -3.04
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
PNB 215232000 -19.30 40.15 -1.11
GODREJPROP 2163850 -15.93 1397.20 3.99
APOLLOTYRE 16935000 -11.27 241.60 -1.00
CONCOR 6445812 -8.70 466.85 -2.41
DRREDDY 2992250 -8.14 4800.90 2.79
CIPLA 12723100 -5.91 847.70 1.23
BEL 33508400 -5.61 140.20 -0.71
EXIDEIND 11217600 -5.32 203.75 -0.17
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.41 0.90
BANKNIFTY 1.17 0.92
RELIANCE 0.43 0.28
ICICIBANK 1.08 0.57
INFY 0.40 0.44
Historical Volatility
SCRIP HV
ZEEL 76.99
SBIN 54.83
DIVISLAB 40.64
TVSMOTOR 47.30
TATASTEEL 53.91
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Technical & Derivatives Report
February 08, 2021
Note: Above mentioned Bullish or Bearish Spreads in Nifty (February Series) are given as an information and not as a recommendation.
Nifty Spot =
14924.25
FII Statistics for February 05, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
5932.82
6393.52
(460.70) 121798
12983.88
(1.67)
INDEX
OPTIONS
344473.45
342069.18
2404.27
829790
87514.52
21.36
STOCK
FUTURES
17056.99
17092.13
(35.14) 1195092
101831.49
0.38
STOCK
OPTIONS
15150.34
15111.23
39.11
146655
12746.33
9.52
Total 382613.60
380666.06
1947.54
2293335
215076.22
7.56
Turnover on February 05, 2020
Instrum
ent
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 5,29,257 51203.04 27.94
Index Options 2,20,61,139
21,66,650.08 -73.43
Stock Futures 10,81,751 99638.48 10.12
Stock Options 20,23,994 1,90,858.39 11.48
Total 2,56,96,141
25,08,349.99 -70.34
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 14900 298.35
52.45 47.55 14952.45
Sell 15000 245.90
Buy 14900 298.35
99.60 100.40 14999.60
Sell 15100 198.75
Buy 15000 245.90
47.15 52.85 15047.15
Sell 15100 198.75
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 14900 269.00
40.85 59.15 14859.15
Sell 14800 228.15
Buy 14900 269.00
73.25 126.75 14826.75
Sell 14700 195.75
Buy 14800 228.15
32.40 67.60 14767.60
Sell 14700 195.75
Nifty Put-Call Analysis
,0
200,000
400,000
600,000
800,000
1000,000
1200,000
1400,000
1600,000
1800,000
14200 14300 14400 14500 14600 14700 14800 14900 15000 15100 15200 15300 15400 15500
Call Put
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Technical & Derivatives Report
February 08, 2021
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
555
561
568
573
580
ASIANPAINT 2,337 2,357
2,390
2,410
2,444
AXISBANK
685
702
734
752
784
BAJAJ-AUTO 4,110 4,171
4,222
4,282
4,333
BAJFINANCE 5,388 5,463
5,545
5,620
5,702
BAJAJFINSV 9,355 9,539
9,739
9,923
10,123
BPCL
408
411
417
421
426
BHARTIARTL
558
570
588
599
617
BRITANNIA 3,477 3,509
3,563
3,595
3,648
CIPLA
820
834
844
858
869
COALINDIA
137
139
142
144
146
DIVISLAB 3,588 3,705
3,782
3,900
3,977
DRREDDY 4,548 4,674
4,752
4,879
4,957
EICHERMOT 2,858 2,895
2,942
2,980
3,027
GAIL
124
126
129
131
135
GRASIM 1,154 1,170
1,189
1,206
1,225
HCLTECH
926
936
950
960
974
HDFCBANK 1,518 1,558
1,588
1,628
1,658
HDFCLIFE
667
674
680
687
692
HDFC 2,657 2,689
2,729
2,761
2,800
HEROMOTOCO 3,258 3,343
3,452
3,537
3,646
HINDALCO
251
257
261
267
271
HINDUNILVR 2,221 2,245
2,265
2,289
2,309
ICICIBANK
596
605
620
629
644
IOC
100
101
103
104
106
INDUSINDBK
973
999
1,042
1,068
1,111
INFY 1,248 1,260
1,274
1,287
1,301
ITC
222
228
233
240
245
JSW STEEL
382
392
399
409
417
KOTAKBANK 1,879 1,931
1,965
2,016
2,050
LT 1,489 1,503
1,525
1,539
1,561
M&M
822
844
863
884
903
MARUTI 7,289 7,391
7,564
7,666
7,839
NESTLEIND 16,931
17,023
17,095
17,188
17,260
NTPC
96
98
100
102
104
ONGC
95
96
98
99
101
POWERGRID
199
203
206
210
213
RELIANCE 1,905 1,914
1,929
1,939
1,954
SBILIFE
846
855
863
872
879
SHREECEM 26,202
26,462
26,875
27,135
27,548
SBIN
372
383
396
406
419
SUNPHARMA
613
624
634
645
655
TCS 3,087 3,123
3,164
3,200
3,241
TATAMOTORS
302
309
320
326
337
TATASTEEL
636
661
676
700
715
TECHM
933
946
963
977
994
TITAN 1,483 1,496
1,518
1,531
1,552
ULTRACEMCO 6,011 6,182
6,290
6,461
6,569
UPL
523
530
542
549
561
WIPRO
414
420
427
432
439
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Technical & Derivatives Report
February 08, 2021
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: [email protected]lbroking.com
For Derivatives Queries E-mail: deri[email protected].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