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Technical & Derivatives Report
November 09, 2020
Nifty
Bank Out
look
-
(
26799
)
It was a splendid week for the Bank Nifty as right from the word go it
witnessed positive momentum that continued throughout the
session to end with whooping gains of 12.13% against the previous
week close. During the previous week, while the markets looked
choppy, we remained optimistic on Bank Nifty as it was holding its
key support levels. On Monday, the bank nifty started with a gap-up
courtesy to Icici Bank, and then throughout the week, the other
banking stocks chipped in to trigger a mesmerizing week for the
bank index. Now during the week, the bank index broke above all in
between hurdles with ease and has now closed above 61.8%
retracement of the entire fall seen from the all-time high levels. This
advocates well for the bulls and with the ongoing momentum, we
expect the northward journey to continue in the near term. Traders
are henced advised to maintain positive bias and have a stock-
specific approach within this sector. As far as levels are concerned,
immediate support is placed around 26455 -26135 whereas
resistance is seen around 27091 - 27162 levels.
Key Levels
Support 1 – 26455 Resistance 1 – 27091
Support 2 – 26135 Resistance 2 – 27162
Exhibit 1: Nifty Daily Chart
Se
nsex
(
41893)
/ Nifty
(
12264
)
It was one of the remarkable weeks of trade for our markets; rather we
can say for the entire world. As we stepped into an eventful week on
Monday, things were very much different. We had a lot of uncertainty
around us, which spooked markets in the previous week and were
battling around the key supports, which at one time looked like getting
breached. But fortunately, the buying emerged right from the first day
and the moment counting started for the race of becoming a US
President, markets started reacting pleasantly. In fact, they just took off
in the last couple of days to clock whopping gains over Five percent for
the Nifty and more than Twelve percent for the Bank Nifty on a weekly
basis.
Honestly speaking, it was one of the rarest bigger events when markets
had a smooth unidirectional move throughout the week and
fortunately, it’s in the northward direction, which is gratifying for
market participants across the globe. Yes, we should not ignore the fact
that the actual verdict is yet to come, so you never know how the
reaction would be in this week. But it seems that the markets have
completely shrugged off / discounted the complexity of this event and
have just seen the bright futuristic picture. Despite some challenging
times, we remained hopeful at the start of the week as long as the key
support of 11600 11500 is not violated. Market not only defended it
but is very much at a comfortable position now with new record highs
in sight. Technically, we can see a ‘Bullish Flag’ breakout happening
along with a ‘Breakaway Gapon a daily chart. It is considered a strong
development and hence, we are likely to move beyond previous highs
soon. So, 12430.50 is the first level to watch and post then the
theoretical target of the ‘Flag’ pattern is around 12700. Further levels
can be projected as we move forward
.
Exhibit 2: Nifty Bank Daily Chart
On the flip side, Thursday’s gap area of
12027.20
11929.65
should
act as a strong support. This rally can be considered a healthy one
because almost all sectors have contributed to it and financial space
has dominated it along with the late participation from the broader
market. The much awaited breakout in the Midcap index has already
been confirmed, which generally happens when the market feels that
the uncertainty is behind us and we are likely to witness some strong
rally in the near future. Going by this logic, it adds more conviction and
hence, we expect some encouraging moves to come in the broader
market.
.Key Levels
Support 1 – 12120 Resistance 1 – 12400
Support 2 – 12027 Resistance2 – 12430
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Technical & Derivatives Report
November 09, 2020
Nifty Vs OI
11300
11400
11500
11600
11700
11800
11900
12000
12100
12200
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
10/12 10/15 10/20 10/23 10/28 11/2 11/5
(`000)
Openinterest Nifty
View
s
We began the week on a cheerful note and saw
Nifty inching higher during the remaining part of
the week. After couple of attempts, the benchmark
index finally surpassed the important hurdle of
12000-12050. We concluded the week almost at
the highest point.
FIIs were net buyers in the cash segment to the
tune of Rs. 4870 crores. In index future segment,
they bought worth Rs. 521 crores with rise in open
interest indicating addition of fresh long positions
in Friday’s session.
In recent upmove, Nifty as well as BankNifty
added good amount of longs, the open interest
surged 5.44% and 15.14% respectively. In addition,
decent amount of longs from last series are also
intact in the system. In index options front, good
amount of writing was seen in 11800-12000 put
options; whereas, decent build-up was also seen in
12200-13000 call strikes. The volatility index
plunged to 20.50, despite the event week. The
above data remains positive and hence, we
continue with the optimistic stance on market.
Going ahead, 12000-12100 may act as a demand
zone and any dips towards these levels shall be an
opportunity to re-enter.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 0.27%
Bank Nifty futures open interest has increased by 3.30%
as market closed at 12263.55 levels.
The Nifty November future closed with a discount of
2.10 point against a premium of 14.35 point in last
trading session. The December series closed at a
premium of 13.65 point.
The INDIA VIX has decreased from 20.96 to 20.50.
At the same time, the PCR-OI of Nifty increased from
1.68 to 1.77.
Few of the liquid counters where we have seen high cost
of carry are IDEA, TATAPOWER, BANKBARODA, PNB and
INFY.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CONCOR 6724026 30.13 378.05 -7.51
ICICIGI 164050 22.54 1260.45 1.41
RBLBANK 20238500 19.68 193.25 4.05
MFSL 2115100 18.50 621.15 0.29
MOTHERSUMI 25914000 15.47 117.05 3.71
VOLTAS 3469000 13.96 753.35 1.41
LICHSGFIN 11956000 13.16 301.90 -1.97
BOSCHLTD 171500 11.26 11861.50 -2.09
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
APOLLOTYRE 9035000 -18.68 153.45 3.74
TORNTPOWER 1752000 -15.85 322.25 1.45
SAIL 58216000 -12.46 37.95 -1.17
MCDOWELL-N 12507500 -8.18 544.20 2.13
JUBLFOOD 1670000 -7.91 2263.15 0.95
GODREJPROP 1634750 -7.20 951.35 3.55
RELIANCE 35903520 -6.63 2029.15 3.72
CUMMINSIND 1370400 -6.39 456.05 0.42
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.77 0.93
BANKNIFTY 1.60 0.83
RELIANCE 0.54 0.41
ICICIBANK 0.85 0.62
INFY 0.50 0.43
Historical Volatility
SCRIP HV
CONCOR 52.06
RELIANCE 50.00
HDFCBANK 40.57
APOLLOTYRE 53.33
AMBUJACEM 45.08
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Technical & Derivatives Report
November 09, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (November Series) are given as an information and not as a recommendation.
Nifty Spot =
12263.55
FII Statistics for November 06, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
4219.68 3698.32 521.36
123965 10649.71 1.72
INDEX
OPTIONS
183183.98 180613.76 2570.22
788397 67620.39 23.53
STOCK
FUTURES
15901.38 15924.48 (23.10) 1239683 86547.65 1.46
STOCK
OPTIONS
6954.31 6977.24 (22.93) 71776 5128.83 9.98
Total 210259.35
207213.80
3045.55
2223821
169946.58
8.63
Turnover on November 06, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
4,90,983 36720.18 6.72
Index
Options
1,63,95,692
12,48,483.96
-71.33
Stock Futures
8,63,199 62018.14 2.95
Stock
Options
13,44,010 1,03,837.74 23.68
Total 1,90,93,884
14,51,060.02
-67.99
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 12300 179.90
48.65 51.35 12348.65
Sell 12400 131.25
Buy 12300 179.90
88.55 111.45 12388.55
Sell 12500 91.35
Buy 12400 131.25
39.90 60.10 12439.90
Sell 12500 91.35
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 12300 219.40
42.10 57.90 12257.90
Sell 12200 177.30
Buy 12300 219.40
74.10 125.90 12225.90
Sell 12100 145.30
Buy 12200 177.30
32.00 68.00 12168.00
Sell 12100 145.30
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
11700 11800 11900 12000 12100 12200 12300 12400 12500 12600 12700 12800 12900 13000
Call Put
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Technical & Derivatives Report
November 09, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
361
366
371
376
381
ASIANPAINT 2,174 2,192
2,220
2,237
2,265
AXISBANK
525
533
540
548
554
BAJAJ-AUTO 2,932 2,955
2,977
3,000
3,022
BAJFINANCE 3,648 3,714
3,771
3,837
3,894
BAJAJFINSV 5,895 6,091
6,220
6,416
6,545
BPCL
356
359
365
368
373
BHARTIARTL
441
446
453
457
465
BRITANNIA 3,454 3,484
3,519
3,549
3,585
CIPLA
777
784
793
799
808
COALINDIA
117
119
121
123
125
DIVISLAB 3,151 3,194
3,230
3,273
3,308
DRREDDY 4,847 4,875
4,919
4,947
4,991
EICHERMOT 2,093 2,116
2,135
2,158
2,177
GAIL
84
85
86
87
89
GRASIM
781
788
798
805
816
HCLTECH
828
839
847
858
867
HDFCBANK 1,250 1,279
1,294
1,323
1,339
HDFCLIFE
583
587
593
597
602
HDFC 2,086 2,112
2,129
2,155
2,171
HEROMOTOCO 2,893 2,919
2,951
2,977
3,009
HINDALCO
183
186
188
191
193
HINDUNILVR 2,063 2,079
2,101
2,117
2,139
ICICIBANK
433
438
441
446
450
IOC
79
80
80
81
81
INDUSINDBK
691
715
731
755
771
INFY 1,079 1,096
1,109
1,125
1,138
ITC
171
173
175
176
179
JSW STEEL
318
322
326
331
335
KOTAKBANK 1,623 1,670
1,698
1,745
1,773
LT
942
951
959
969
977
M&M
594
604
612
621
629
MARUTI 6,733 6,820
6,978
7,065
7,223
NESTLEIND 16,686
16,847
17,063
17,223
17,440
NTPC
86
87
88
88
90
ONGC
67
67
68
68
69
POWERGRID
176
177
178
180
181
RELIANCE 1,954 1,992
2,016
2,053
2,078
SBILIFE
788
795
802
808
816
SHREECEM 21,712
21,882
22,131
22,301
22,550
SBIN
215
217
219
222
224
SUNPHARMA
502
505
511
514
520
TCS 2,669 2,688
2,701
2,720
2,733
TATAMOTORS
135
137
140
142
144
TATASTEEL
417
422
427
432
438
TECHM
813
832
843
862
873
TITAN 1,226 1,240
1,253
1,267
1,280
ULTRACEMCO 4,493 4,525
4,571
4,603
4,649
UPL
413
417
423
428
433
WIPRO
340
343
346
349
352
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Technical & Derivatives Report
November 09, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: techni[email protected]
For Derivatives Queries E-mail: derivatives.d[email protected]
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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[email protected]ing.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]g.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com