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Technical & Derivatives Report
August 10, 2020
Nifty
Bank Out
-
(
21754
)
On Friday, Bank nifty started on a positive note and then traded in
a range throughout the session to eventually end with half a
percent gains tad above 21750 levels.
During the last week, the bank nifty started on a strong negative
note however on our expected line it respected the support of
swing low at 21000 that triggered a smart bounce back. In the
second half of the week, the bank nifty traded within a range with
the levels around 22000 acted as a stiff resistance. In this week,
Bank Nifty may remain in the range of 21000 - 22000 and the next
directional move can only be seen on a range breakout from the
above levels. Traders are advised to keep a tab on the above levels
and trade accordingly.
Key Levels
Support 1 – 21370 Resistance 1 – 21936
Support 2 – 21000 Resistance 2 – 22000
Exhibit 1: Nifty Daily Chart
Sensex (38041) / Nifty (11214)
We inaugurated the week on Monday on a flat note; however, right
from the word go, markets looked a bit depressed and as a result,
we witnessed sustained selling throughout the day. Eventually, the
Nifty marked the weakest session in the recent past. However, the
‘200-SMA’ level of 10870 acted as a sheet anchor for the bulls and
despite the strong selling momentum there, Nifty managed to hold
this sacrosanct support. The optimist traders somehow managed to
sail through this difficult session and hence, with the help of
positivity across the globe, our markets too started rebounding
sharply. Post the smart recovery on Tuesday, the index consolidated
by maintaining its positive posture to conclude the action-packed
week tab above the 11200 mark.
In our opinion, the way markets are placed, this week would be quite
crucial and hence, one should be keeping a close eye on few key
levels. Although the market has managed to recover well, it would
be a daunting task surpassing the sturdy wall of 11300-11350. Till
the time it is not conquered successfully, we advocate some caution.
Let’s understand, technically, why this should be considered an
important junction. Firstly, the 78.6% retracement of the entire fall
from 12430.50 to 7511.10 comes around it. Secondly, the 100%
‘Price Extension’ of the first up leg (7511.10 - 9889.05) from
8806.75 precisely coincides around 11300-11350. And now we are
standing at the pullback level of the ‘Parabolic SAR’ which has been
following the entire uptrend, has finally given some sign of weakness
(due to Monday’s negative close) for the first time in the entire up
move. Considering all these observations, we advise traders to stay
light and should ideally take some money off the table. On the
downside, a move below 11100 would lead to immediate correction
towards 10950 - 10880.
Exhibit 2: Nifty Bank Daily Chart
Markets were on recovery mode first and then remained in a slender
range of 150 points for three sessions. Looking at the benchmark
index, it might appear a boring week (especially the second half); but
if we meticulously observe the price action in the broader markets,
we would rate it as one of the finest weeks for individual stocks in
the last few weeks. Finally, on Friday, the NIFTY MIDCAP 50 index
posted a smart rally to surpass its recent hurdles. Hence, traders are
advised to stay focused on individual stocks in this week; but the
aggressive positions should be avoided till the time important levels
are not surpassed convincingly.
Key Levels
Support 1 – 11127 Resistance 1 – 11300
Support 2 – 11100 Resistance 2 – 11350
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Technical & Derivatives Report
August 10, 2020
Nifty Vs OI
10600
10700
10800
10900
11000
11100
11200
11300
11400
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
7/20 7/22 7/24 7/28 7/30 8/3 8/5 8/7
(`000)
Openinterest Nifty
View
s
The indices started the week on a negative note, but it
recovered in Tuesday’s session due to long formation in
Nifty and short covering in Bank Nifty. For the rest of
the week, both the indices consolidated within a range.
FIIs were net buyers in the cash market segment to the
tune of Rs. 397 crores. In index futures, the activity was
muted as they sold worth 63 crores with increase in
open interest
.
FII’s started this series with long positions in index
futures; however they unwound some of their longs in
this week and their ‘Long Short Ratio’ now stands at
58.4 percent. Inspite of some consolidation in the
indices, there was good stock specific action during the
week. The data indicates continuation of a trading
range of 11000-11300 for this week and thus, traders
are advised to trade with a stock specific approach..
C
o
mme
n
t
s
The Nifty futures open interest has increased by 1.72%
Bank Nifty futures open interest has increased by 4.36%
as market closed at 11214.05 levels.
The Nifty August future closed with a premium of 12.15
point against a discount of 0.65 point in last trading
session. The September series closed at a premium of
21.45 point.
The INDIA VIX has decreased from 23.15 to 22.58
At the same time, the PCR-OI of Nifty increased from 1.49
to 1.60.
Few of the liquid counters where we have seen high cost
of carry are PNB, GMRINFRA, BHEL, L&TFH AND
BANKBARODA.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
TORNTPOWER 2823000 105.46 337.10 3.13
RBLBANK 25979200 43.38 191.30 10.15
CENTURYTEX 3836000 42.56 323.70 6.69
IDEA 423220000 33.70 8.85 7.23
TVSMOTOR 6382600 19.60 421.50 1.06
TITAN 7836000 15.05 1091.05 -2.64
MGL 1148400 15.02 969.00 -1.09
SRF 751750 14.29 4081.30 6.48
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CANBK 14255000 -12.47 101.90 1.09
MANAPPURAM 20328000 -10.58 161.60 4.57
NIITTECH 450000 -8.40 1988.75 -1.71
CADILAHC 9369800 -7.89 390.90 0.33
PIDILITIND 3765500 -6.64 1378.25 3.30
TORNTPHARM 1658500 -5.39 2941.05 -0.84
UPL 14086800 -5.15 480.30 3.48
CHOLAFIN 5665000 -4.99 208.75 1.38
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.60 0.94
BANKNIFTY 0.97 0.84
RELIANCE 0.76 0.55
ICICIBANK 0.50 0.47
INFY 0.72 0.67
Historical Volatility
SCRIP HV
LUPIN 45.64
APOLLOTYRE 52.47
TATACONSUM 58.81
SRF 56.54
ASIANPAINT 41.20
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Technical & Derivatives Report
August 10, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (August Series) are given as an information and not as a recommendation.
Nifty Spot =
11214.05
FII Statistics for August 07, 2020
Detail Buy
Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
2947.29
3010.61
(63.32) 110519
8473.56
7.56
INDEX
OPTIONS
134408.89
134993.59
(584.70) 597338
47267.57
15.10
STOCK
FUTURES
13071.09
14380.81
(1309.72) 1276881
88952.01
(0.05)
STOCK
OPTIONS
3991.66
4007.78
(16.12) 69683
4737.16
4.32
Total 154418.93
156392.79
(1973.86) 2054421
149430.30
4.49
Turnover on August 07, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 3,97,038 25743.18 -25.52
Index Options 1,21,11,054
8,33,467.03 -78.19
Stock Futures 7,77,771 57051.60 -2.03
Stock Options 9,53,281 75046.42 2.04
Total 1,42,39,144
9,91,308.23 -75.15
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11200 220.55
51.75 48.25 11251.75
Sell 11300 168.80
Buy 11200 220.55
95.85 104.15 11295.85
Sell 11400 124.70
Buy 11300 168.80
44.10 55.90 11344.10
Sell 11400 124.70
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11200 194.20
39.75 60.25 11160.25
Sell 11100 154.45
Buy 11200 194.20
74.35 125.65 11125.65
Sell 11000 119.85
Buy 11100 154.45
34.60 65.40 11065.40
Sell 11000 119.85
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000
Call Put
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Technical & Derivatives Report
August 10, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
319
323
326
329
332
ASIANPAINT 1,692 1,749
1,783
1,840
1,874
AXISBANK
423
428
432
438
442
BAJAJ-AUTO 2,955 2,978
2,999
3,022
3,043
BAJFINANCE 3,247 3,356
3,419
3,527
3,590
BAJAJFINSV 6,156 6,311
6,406
6,561
6,656
BPCL
407
413
417
424
428
BHARTIARTL
547
554
559
565
570
INFRATEL
186
189
191
195
197
BRITANNIA 3,815 3,875
3,910
3,970
4,005
CIPLA
716
722
731
737
746
COALINDIA
128
129
130
131
131
DRREDDY 4,467 4,520
4,614
4,667
4,760
EICHERMOT 21,254
21,531
21,837
22,113
22,420
GAIL
95
96
97
98
98
GRASIM
622
629
636
643
649
HCLTECH
677
684
692
698
707
HDFCBANK 1,011 1,027
1,037
1,054
1,064
HDFC
600
604
609
612
617
HEROMOTOCO
1,755
1,767
1,774
1,785
1,793
HINDALCO 2,649 2,678
2,699
2,727
2,749
HINDUNILVR
174
176
177
179
181
ICICIBANK 2,187 2,199 2,
217
2,229
2,247
IOC
350
354
357
361
363
INDUSINDBK
84
85
87
88
90
INFY
483
496
505
518
526
ITC
936
943
956
964
977
JSW STEEL
193
194
196
197
199
KOTAKBANK
234
237
239
242
244
LT 1,313 1,328
1,338
1,352
1,362
M&M
906
911
919
9
24
932
MARUTI
587
594
605
612
623
NESTLEIND 6,369 6,524
6,637
6,792
6,904
NTPC 16,405
16,597
16,748
16,940
17,091
ONGC
85
85
86
87
87
POWERGRID
77
78
79
79
80
RELIANCE
174
175
176
178
179
SHREECEM 2,104 2,125
2,141
2,163
2,179
SBIN 21,416
21,663
21,869
22,116
22,321
SUNPHARMA
188
189
191
192
193
TCS
515
521
528
533
541
TATAMOTORS 2,262 2,279
2,303
2,320
2,344
TATASTEEL
115
117
118
121
122
TECHM
388
396
401
409
415
TITAN
648
655
662
669
675
ULTRACEMCO 1,
057
1,074
1,103
1,120
1,148
UPL 3,930 3,967
4,020
4,057
4,109
VEDANTA
458
469
477
488
496
WIPRO
273
275
279
281
284
ZEEL
148
149
150
151
153
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Technical & Derivatives Report
August 10, 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 ru[email protected]ing.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com