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Technical & Derivatives Report
October 08, 2020
Nifty
Bank Out
-
(
22965
)
We had a flat opening yesterday despite some overnight
correction in US markets. In the initial trades, the banking index
dipped lower but this early decline got bought into immediately.
During the remaining part of the session, banking stocks traded
with a positive bias; but the momentum was clearly lacking.
Eventually, the BANKNIFTY ended the session with modest half a
percent gains. The banking continues its northward move;
however, it is still strongly underperforming other two major
indices, NIFTY and IT. During the session, it tends to give some
hint of correction but it seems like it is only to fool the pessimistic
traders. In fact, we are also getting deceived by such moves. This
relentless move is a bit difficult to digest and hence, we will stay
neutral and would try to follow stock specific moves. Yesterday,
we had mentioned the key level at 23000, which if surpassed
convincingly, we may see an extension towards 23200 23400.
During the day, the index moved beyond 23000 but did not
sustain higher. Hence, for the coming session, above mentioned
levels are still valid; whereas on the lower side, 22600 followed by
22500 would be seen as important supports.
Key Levels
Support 1 – 22600 Resistance 1 – 23200
Support 2 – 22500 Resistance 2 – 23400
Exhibit 1: Nifty Daily Chart
Se
nsex
(
39879)
/ Nifty
(
11739
)
Inspite of the sluggish cues from the global markets, Nifty started
the session on a positive note and surpassed the 11700 mark. Post
a surge in the first hour of the trade, the index consolidated with a
positive bias throughout the session and ended at new seven-
month high.
Our markets have continued with the ongoing momentum to add
more gains to the recent rally. This week, the index heavyweights
have led the charge one by one wherein the IT giants took the lead
on Monday, HDFC twins on Tuesday and yesterday the heavyweight
Reliance propelled the index higher. However, the market breadth
showed a bit divergence yesterday as the number of stocks
declining outnumbered the advances. The over bought momentum
readings on the lower time frame chart and divergence in the
broader markets indicates stock specific action and thus, traders
should be selective in stock picking. The immediate support for the
index are placed around 11680 and 11625 whereas resistance is
seen around 11800 mark.
.Key Levels
Support 1 – 11680 Resistance 1 – 11780
Support 2 – 11625 Resistance2 – 11800
Exhibit 2: Nifty Bank Daily Chart
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Technical & Derivatives Report
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Nifty Vs OI
10200
10400
10600
10800
11000
11200
11400
11600
11800
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
9/169/179/189/219/239/249/259/289/299/3010/110/510/6
(`000)
Openinterest Nifty
View
s
As indicated by the global market, the benchmark
index opened on a positive note and then we saw
extension of recent upmove towards 11750 in the
early morning trade. As the day progressed, Nifty
traded in a narrow range and concluded the session
below 11750 mark
.
FIIs continued pouring liquidity in cash market; they
bought equities worth Rs. 1094. In index future
segment, they bought worth Rs. 781 crores with huge
amount of rise in open interest indicating formation of
fresh long positions in yesterday’s trading session.
The recent upmove was supported by meaningful
longs in Nifty; whereas, banking index rallied mainly
due to short covering. In Nifty options front, we saw
massive writing in 11700 puts. On the flip side, the
overall build-up was scattered between 11750-12000
call options. Maximum open interest concentration in
the weekly series is now placed at 11800 call and
11500 put options. Considering the above data points,
we believe 11600-11650 may now act as a support
zone; whereas, immediate hurdle is placed around
11800 mark. Traders are advised using intraday
declines towards 11600-11650 to buy At-The-Money
call options for today’s weekly expiry.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 3.47%
Bank Nifty futures open interest has decreased by 1.32%
as market closed at 11738.85 levels.
The Nifty October future closed with a premium of
12.05 point against a premium of 7.25 point in last
trading session. The November series closed at a
premium of 36.70 point.
The INDIA VIX has increased from 19.65 to 20.06.
At the same time, the PCR-OI of Nifty increased from
1.57 to 1.58.
Few of the liquid counters where we have seen high
cost of carry are INDUSINDBK, TVSMOTOR, SAIL,
ICICIBANK AND HDFCLIFE.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
MGL 1455600 16.52 828.80 -3.07
UBL 1449000 13.42 957.95 -1.71
BHEL 77490000 11.11 28.40 -3.57
TITAN 5778750 10.32 1254.00 4.49
POWERGRID 18444000 9.73 159.60 -2.25
BAJFINANCE 4722000 8.45 3331.15 -4.54
LT 14666850 8.18 887.90 -0.56
AMARAJABAT 984000 7.42 739.95 -0.12
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
VEDL 86663600 -19.67 123.35 -10.65
BANDHANBNK 12808800 -7.57 314.55 2.36
MUTHOOTFIN 3203250 -6.79 1176.20 -1.69
CADILAHC 7561400 -6.45 412.85 -0.36
TATACHEM 6226000 -5.75 300.95 -1.29
M&MFIN 16104144 -5.50 127.65 -3.03
DLF 28040100 -5.43 158.70 -2.78
CHOLAFIN 6695000 -5.20 254.35 -2.78
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.58 0.92
BANKNIFTY 0.99 0.84
RELIANCE 0.54 0.30
ICICIBANK 0.78 0.53
INFY 0.49 0.27
Historical Volatility
SCRIP HV
VEDL 61.86
TITAN 48.75
AMBUJACEM 46.12
BAJAJ-AUTO 43.06
MGL 47.58
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Technical & Derivatives Report
October 08, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (October Series) are given as an information and not as a recommendation.
Nifty Spot =
11738.85
FII Statistics for October 07, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
3561.06 2779.64 781.42
125952 9878.03 14.79
INDEX
OPTIONS
272839.06 273553.14 (714.08) 904248 72461.45 9.80
STOCK
FUTURES
13324.12 13590.94 (266.82) 1113693 78618.71 0.02
STOCK
OPTIONS
6070.65 6093.53 (22.88) 76151 5846.47 11.55
Total 295794.89
296017.25
(222.36) 2220044
166804.66
4.96
Turnover on October 07, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
4,52,144 30679.09 3.54
Index Options
3,12,69,437 21,56,481.09 44.18
Stock Futures
7,32,574 57502.31 8.14
Stock Options
11,40,944 98171.14 27.50
Total 3,35,95,099 23,42,833.63 41.52
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11700 227.30
56.70 43.30 11756.70
Sell 11800 170.60
Buy 11700 227.30
103.75 96.25 11803.75
Sell 11900 123.55
Buy 11800 170.60
47.05 52.95 11847.05
Sell 11900 123.55
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11700 177.20
35.95 64.05 11664.05
Sell 11600 141.25
Buy 11700 177.20
65.05 134.95 11634.95
Sell 11500 112.15
Buy 11600 141.25
29.10 70.90 11570.90
Sell 11500 112.15
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300
Call Put
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October 08, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
353
357
363
367
373
ASIANPAINT 2,054 2,080
2,099
2,125
2,144
AXISBANK
438
446
451
458
463
BAJAJ-AUTO 2,900 2,989
3,043
3,132
3,187
BAJFINANCE 3,224 3,278
3,339
3,392
3,454
BAJAJFINSV 5,770 5,838
5,888
5,956
6,006
BPCL
333
338
346
350
358
BHARTIARTL
414
418
425
429
436
BRITANNIA 3,727 3,757
3,797
3,827
3,867
CIPLA
759
766
778
786
798
COALINDIA
112
113
115
116
118
DIVISLAB 3,117 3,149
3,184
3,216
3,250
DRREDDY 5,029 5,067
5,131
5,169
5,233
EICHERMOT 2,136 2,187
2,221
2,272
2,306
GAIL
86
86
87
88
88
GRASIM
743
751
756
765
770
HCLTECH
820
824
827
831
835
HDFCBANK 1,128 1,145
1,155
1,172
1,182
HDFCLIFE
568
574
580
586
593
HDFC 1,885 1,917
1,941
1,973
1,997
HEROMOTOCO 3,095 3,164
3,207
3,276
3,319
HINDALCO
167
170
174
177
181
HINDUNILVR 2,097 2,118
2,134
2,155
2,171
ICICIBANK
370
376
380
387
391
IOC
74
74
75
76
76
INDUSINDBK
597
608
617
628
637
INFY 1,022 1,044
1,058
1,081
1,095
ITC
168
169
170
171
172
JSW STEEL
284
288
291
294
297
KOTAKBANK 1,311 1,318
1,329
1,336
1,347
LT
867
878
886
897
905
M&M
619
625
631
637
643
MARUTI 6,790 6,918
6,994
7,123
7,199
NESTLEIND 15,761
15,938
16,031
16,208
16,302
NTPC
81
82
83
84
85
ONGC
67
69
71
73
75
POWERGRID
156
158
161
162
165
RELIANCE 2,173 2,215
2,262
2,304
2,351
SBILIFE
819
823
830
834
841
SHREECEM 19,835
20,274
20,537
20,976
21,239
SBIN
187
189
191
193
195
SUNPHARMA
501
506
515
520
528
TCS 2,669 2,703
2,736
2,770
2,803
TATAMOTORS
137
139
142
144
146
TATASTEEL
364
368
373
377
383
TECHM
833
840
844
851
855
TITAN 1,173 1,214
1,241
1,281
1,308
ULTRACEMCO 4,033 4,123
4,204
4,295
4,376
UPL
497
504
514
521
532
WIPRO
321
328
332
339
344
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Technical & Derivatives Report
October 08, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: [email protected]lbroking.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