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Technical & Derivatives Report
July 08, 2020
Nifty Bank Outlook - (22628)
Yesterday, Bank Nifty started on a positive note however along
with the broader markets it slipped during the initial hours. The
dip in the banking index was however not much deep as buying
in some of the heavyweight private banks pushed bank index
higher. Subsequently, strong buying in banking and NBFC
conglomerates resulted bank index to outperform and end with
gains of 1.93% at 22628.
The bank index has been a clear underperformed in the recent
past however yesterday we finally saw outperformance with
broad-based buying from the banking space. In our previous
commentary, we had mentioned breakout levels at 22500 and by
closing above the same the bank nifty has shaped up well for
outperformance in the near term and to have a catch-up rally with
the benchmark index. Traders are hence advised to keep positive
bias on the banking stocks and used intraday dips to enter longs.
As far as levels are concerned immediate support is placed around
22500 - 22230 whereas resistance is around 22950 and 23200.
.
Key Levels
Support 1 – 22500 Resistance 1 – 22950
Support 2 – 22230 Resistance 2 – 23200
Exhibit 1: Nifty Daily Chart
Sensex (36675) / Nifty (10800)
Yesterday since morning, global markets looked a bit nervous and
despite SGX Nifty indicating a gap down opening, we started the
session marginally higher. But it was merely a formality as we
started correcting in the initial trades, which extended in the
following couple of hours to sneak below 10700. Fortunately, the
mighty bulls waiting for the decline, just pounced on it and as a
result, we witnessed a v-shaped recovery throughout the
remaining part of the day to conclude around the 10800 mark.
Yesterday’s activity can easily be divided into two parts. First half
where bears had dominated the proceedings and the latter one,
which belongs to the mighty bulls. In fact the major driver this
time was the financial space. We saw some muted activity since
last couple of days in the banking and NBFC conglomerates; but
all of a sudden, the entire basket started buzzing and few stocks
from this, surged as if there is no tomorrow. And as we all know,
when financial space moves, the Nifty does not need any support
from elsewhere.
Key Levels
Support 1 – 10689 Resistance 1 – 10850
Support 2 – 10630 Resistance 2 – 10925
Exhibit 2: Nifty Bank Daily Chart
Now, the way Bank Nifty is shaped up, we expect the rally to extend
in Nifty as well towards 10850-10925 levels. On the flipside, 10750
followed by 10689 would now be seen as intraday supports. With
yesterday’s activity, the momentum traders can shift their stop
losses below 10689 now, because a slide below this would result
into a strong bout of profit booking. Also, we continue to advocate
booking profits (For momentum traders) in the ongoing rally.
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Technical & Derivatives Report
July 08, 2020
Nifty Vs OI
10000
10100
10200
10300
10400
10500
10600
10700
10800
10900
10,000
10,500
11,000
11,500
12,000
12,500
13,000
13,500
14,000
6/22 6/23 6/24 6/25 6/26 6/29 6/30 7/1 7/2 7/3 7/6 7/7
(`000)
Openinterest Nifty
View
s
Yesterday, Nifty started on a positive note and then
witnessed choppy moves within a range to end with
gains of 0.33% tad 10800.
FIIs were net buyers in the cash market segment to the
tune of Rs. 830 crores. In index futures, they sold
worth 409 crores with decrease in open interest
indicating long unwinding in yesterday’s session
.
The indices traded with a negative bias till noon
yesterday, however, then it recovered smartly led by
the banking and the NBFC space. Bank Nifty has seen
an open interest increase of about 10 percent
indicating long formations. FII's were net buyers in the
cash segment but they preferred to book profits on
some of their index futures long positions. As far as
options data is concerned, 10700-10500 put options
added open interest indicating support at 10700
followed by 10600, whereas immediate resistance is
seen around 11000 mark. NBFC stocks have seen good
amount of long formations in the futures segment and
hence, traders are advised to look for stock specific
trading opportunities within the Banking and NBFC
sector
.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 4.58%
Bank Nifty futures open interest has increased by 9.74%
as market closed at 10799.65 levels.
The Nifty July future closed with a discount of 33 point
against a discount of 8.8 point in last trading session. The
August series closed at a discount of 36 point.
The INDIA VIX has decreased from 25.19 to 25.10
At the same time, the PCR-OI of Nifty increased from 1.60
to 1.63.
Few of the liquid counters where we have seen high cost
of carry are SAIL, GLENMARK, IBULHSGFIN, TATACHEM,
AND L&TFH.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
TATACHEM 2760000 61.40 311.70 0.72
L&TFH 34054400 41.43 71.30 2.07
MGL 844200 25.29 1028.55 -4.38
EQUITAS 16834000 21.57 59.15 11.05
IGL 9219375 20.23 415.55 -5.78
ESCORTS 3010700 13.66 1110.55 3.25
MUTHOOTFIN 3459750 13.48 1103.40 -2.46
M&MFIN 13916700 9.77 204.15 11.51
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
GODREJPROP 350350 -15.52 881.60 -1.62
BHEL 58380000 -15.40 42.55 -2.18
BOSCHLTD 118550 -11.56 13480.90 11.77
SAIL 45619000 -10.98 32.45 3.14
SIEMENS 2362800 -10.41 1172.70 0.81
AMARAJABAT 1597000 -9.62 707.65 -0.82
MINDTREE 1595200 -9.49 982.05 2.12
IBULHSGFIN 12564300 -8.47 231.45 0.61
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.63 0.88
BANKNIFTY 1.07 0.68
RELIANCE 0.74 0.65
ICICIBANK 0.56 0.49
INFY 0.94 0.46
Historical Volatility
SCRIP HV
BOSCHLTD 51.31
M&MFIN 82.42
EQUITAS 86.55
IGL 50.37
PETRONET 48.05
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Technical & Derivatives Report
July 08, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (July Series) are given as an information and not as a recommendation.
Nifty Spot =
10799.65
FII Statistics for July 07, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
3984.87
4394.30
(409.43) 97316
7116.72
(4.72)
INDEX
OPTIONS
254075.45
253640.54
434.91
727823
53221.09
5.09
STOCK
FUTURES
15407.79
16045.45
(637.66) 1340217
90702.95
0.43
STOCK
OPTIONS
5483.35
5437.89
45.46
93010
6184.73
4.81
Total 278951.46
279518.18
(566.72) 2258366
157225.49
1.82
Turnover on July 07, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 5,41,703 35140.23 24.45
Index Options
2,19,84,476
12,93,207.66
45.55
Stock Futures 9,13,978 60092.26 22.16
Stock Options
10,08,418
71053.33 10.57
Total 2,44,48,575
14,59,493.48
41.67
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 10800 221.05
50.75 49.25 10850.75
Sell 10900 170.30
Buy 10800 221.05
91.85 108.15 10891.85
Sell 11000 129.20
Buy 10900 170.30
41.10 58.90 10941.10
Sell 11000 129.20
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 10800 255.70
42.45 57.55 10757.55
Sell 10700 213.25
Buy 10800 255.70
79.65 120.35 10720.35
Sell 10600 176.05
Buy 10700 213.25
37.20 62.80 10662.80
Sell 10600 176.05
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
10200 10300 10400 10500 10600 10700 10800 10900 11000 11100 11200 11300 11400 11500
Call Put
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July 08, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
334
340
350
357
367
ASIANPAINT 1,690 1,718
1,734
1,762
1,778
AXISBANK
418
433
441
456
464
BAJAJ-AUTO 2,735 2,791
2,883
2,939
3,030
BAJFINANCE 3,005 3,178
3,299
3,473
3,593
BAJAJFINSV 6,143 6,367
6,498
6,721
6,853
BPCL
370
375
383
388
396
BHARTIARTL
555
561
572
578
588
INFRATEL
216
219
222
226
229
BRITANNIA 3,543 3,610
3,648
3,716
3,753
CIPLA
631
634
638
641
646
COALINDIA
130
131
134
136
138
DRREDDY 3,747 3,785
3,852
3,890
3,957
EICHERMOT 18,940
19,435
19,745
20,241
20,551
GAIL
100
101
103
105
106
GRASIM
608
616
629
637
651
HCLTECH
568
580
587
599
607
HDFCBANK 1,085 1,095
1,103
1,114
1,122
HDFC 1,843 1,865
1,879
1,900
1,914
HEROMOTOCO
2,694
2,722
2,755
2,783
2,816
HINDALCO
149
150
154
156
159
HINDUNILVR 2,137 2,145
2,160
2,169
2,184
ICICIBANK
356
366
372
382
388
IOC
85
85
87
88
89
INDUSINDBK
479
503
516
540
554
INFY
754
774
786
806
817
ITC
190
192
196
199
203
JSW STEEL
187
189
192
194
196
KOTAKBANK 1,342 1,355
1,365
1,378
1,388
LT
927
935
949
957
970
M&M
544
552
560
568
576
MARUTI 6,032 6,130
6,190
6,287
6,347
NESTLEIND 16,644
16,778
16,864
16,998
17,084
NTPC
90
91
93
95
97
ONGC
81
81
83
83
85
POWERGRID
168
170
174
177
181
RELIANCE 1,773 1,798
1,831
1,856
1,889
SHREECEM 22,424
22,624
22,856
23,056
23,288
SBIN
182
185
187
191
192
SUNPHARMA
471
475
480
485
490
TCS 2,198 2,234
2,268
2,304
2,339
TATAMOTORS
105
107
110
112
114
TATASTEEL
322
326
332
337
343
TECHM
570
578
585
594
601
TITAN
995
1,006
1,017
1,028
1,039
ULTRACEMCO 3,757 3,810
3,879
3,931
4,000
UPL
443
447
452
457
462
VEDANTA
105
106
109
110
112
WIPRO
219
222
225
228
232
ZEEL
167
174
178
184
189
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Technical & Derivatives Report
July 08, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst - Technical & Derivatives sameet.cha[email protected]g.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