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Technical & Derivatives Report
May 13, 2020
Nifty Bank Outlook - (18863)
The way BankNifty closed on Monday, some weakness yesterday
was quite evident. During the first half, the banking index
continued its downward momentum after breaching important
support of 18700. However, we have been mentioning a key
support of 9000 for Nifty since few days and till the time it holds,
we remain hopeful in the market. Very much in line with this,
markets took a u-turn post the mid session and in the process,
Nifty as well as BankNifty managed to recover major losses at the
close.
The recovery started after the announcement of PM Modi
addressing the nation at 8 pm and with some hopes again arising
for a stimulus package, we had a good broad based surge in the
latter half. Now as mentioned above, we are likely to see a gap up
opening and in such scenario 20000 20530 is the immediate
resistance whereas 19700 19000 can act as a support levels. Post
the gap up opening the follow up move is quite crucial and hence
in such scenario, one should have stock specific approach with
proper trade setup.
Key Levels
Support 1 – 19700 Resistance 1 – 20000
Support 2 – 19000 Resistance 2 – 20530
Exhibit 1: Nifty Daily Chart
Sensex (31371) / Nifty (9197)
Post the correction from its high on Monday, our markets opened
marginally negative yesterday. The index traded with a negative
bias till noon as the Banking and Financial stocks corrected. The
index heavyweight Reliance Industries too corrected sharply which
led to a dip in Nifty towards 9040. However, in the later half, the
banking space recouped its intraday losses and hence, Nifty too
recovered from the lows to end the day tad below the 9200 mark.
Since last few days, we have seen a consolidation phase in the
index and the Nifty approached the support end of the range
yesterday. Thus, a pullback move was seen in the later half which
is indeed a good sign for near term. In our recent reports, we have
been mentioning about 9100 being an important support for the
index. Although it was breached during the day, the recovery from
the lows which coincide with the ‘200 SMA’ on the hourly chart
still provides a hope for the market. Infact, in such consolidation
phase, buying near the support and selling near the resistance is
an apt strategy which provides good risk reward ratio for swing
traders. Thus, looking at current scenario, traders are advised to
avoid taking contra call and look for stock specific buying
opportunities from a short term trading perspective. The range of
9100-9000 is the support range for this consolidation phase
whereas resistance is seen around 9450.
Exhibit 2: Nifty Bank Daily Chart
With the overnight announcement by PM
crore of economic package the SGX Nifty is indicating a gap
up opening very close towards the mentioned higher range
of consolidation at 9450 - 9550. If Index sustains above the
same, we can expect a further extension towards 9730 – 9890
levels in the near term.
Key Levels
Support 1 – 9300 Resistance 1 – 9450
Support 2 – 9200 Resistance 2 – 9730
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Technical & Derivatives Report
May 13, 2020
Nifty Vs OI
8400
8600
8800
9000
9200
9400
9600
9800
10000
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
4/15 4/17 4/21 4/23 4/27 4/29 5/4 5/6 5/8 5/12
(`000)
Openinterest Nifty
V
iew
s
Nifty started on a marginal weak note and witnessed a
further sell-off during the first half. In the second half,
Nifty bounced from the lower levels to recover major
part of the loss to end tad below 9200 levels.
FIIs were net sellers in the cash market segment to the
tune of Rs. 1662 crores. In index futures, they sold
worth 872 crores with increase in open interest
indicating shorts created and long positions unwinded
in yesterday’s session.
The indices recovered smartly from the support zone of
9000-9100 in yesterday's session. Fii's were sellers in
the cash segment as well as in the index futures
segment. As per the options data, 9000 continues to be
a strong support whereas resistance is seen around
9500. A move beyond the same will then lead to a
direction move as we could see some unwinding of
positions by the option writers. Traders are advised to
trade with a positive bias till the support of 9000 is
intact.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 0.61%
Bank Nifty futures open interest has increased by 3.92%
as market closed at 9196.55 levels.
The Nifty May future closed with a premium of 15.8 point
against a discount of 14.05 point in last trading session.
The June series closed at a premium of 29.5 points.
The INDIA VIX has increased from 38.04 to 38.20
At the same time, the PCR-OI of Nifty increased from 1.26
to 1.28.
Few of the liquid counters where we have seen high cost
of carry are, BHEL, UBL, NATIONALUM, IDFCFIRSTB and
FEDERALBNK.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
NESTLEIND 400100 19.72 17461.90 -0.49
CHOLAFIN 9240000 17.26 150.90 -0.75
BANDHANBNK 11799600 16.98 233.90 -2.84
TATASTEEL 18721400 16.50 273.95 -1.00
VEDL 114760000 16.02 89.05 11.95
KOTAKBANK 9864000 14.50 1157.25 -2.36
HDFCBANK 33418350 13.22 901.55 -1.93
SAIL 42757700 12.15 27.65 -1.62
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
RELIANCE 23182500 -22.39 1479.25 -5.60
HINDUNILVR 20964000 -19.61 2011.55 -0.58
IDEA 522438000 -9.78 4.95 7.61
NIITTECH 513750 -9.39 1431.00 0.06
M&MFIN 12981400 -6.47 162.55 3.01
TORNTPHARM 813000 -6.12 2445.30 -1.62
TORNTPOWER 1941000 -5.69 299.85 -0.33
DIVISLAB 2140400 -5.07 2363.55 1.63
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.28 0.84
BANKNIFTY 0.69 0.77
RELIANCE 0.77 0.83
ICICIBANK 0.36 0.50
INFY 0.59 0.44
Historical Volatility
SCRIP HV
VEDL 110.82
NTPC 63.42
RELIANCE 82.56
BHARTIARTL 65.49
POWERGRID 48.07
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Technical & Derivatives Report
May 13, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (May Series) are given as an information and not as a recommendation.
Nifty Spot =
9196.55
FII Statistics for May 12, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
5835.70
6707.74
(872.04) 102783
5935.25
4.95
INDEX
OPTIONS
173103.58
172922.39
181.19
523479
33368.14
6.56
STOCK
FUTURES
15811.47
16006.94
(195.47) 1541618
75162.24
(0.58)
STOCK
OPTIONS
4351.69
4302.66
49.03
52125
2607.69
6.26
Total 199102.44
199939.73
(837.29) 2220005
117073.32
1.42
Turnover on May 12, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 7,03,592 34457.56 21.68
Index Options 1,87,45,917
9,33,242.34 31.53
Stock Futures 10,74,404 53523.52 14.23
Stock Options 9,60,313 52773.59 16.93
Total 2,14,84,226
10,73,997.01 29.42
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 9200 283.00
49.50 50.50 9249.50
Sell 9300 233.50
Buy 9200 283.00
92.70 107.30 9292.70
Sell 9400 190.30
Buy 9300 233.50
43.20 56.80 9343.20
Sell 9400 190.30
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 9200 267.55
47.05 52.95 9152.95
Sell 9100 220.50
Buy 9200 267.55
82.85 117.15 9117.15
Sell 9000 184.70
Buy 9100 220.50
35.80 64.20 9064.20
Sell 9000 184.70
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
8500 8600 8700 8800 8900 9000 9100 9200 9300 9400 9500 9600 9700 9800
Call Put
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Technical & Derivatives Report
May 13, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
282
287
290
294
297
ASIANPAINT 1,495 1,509
1,526
1,541
1,558
AXISBANK
361
374
383
396
405
BAJAJ-AUTO 2,431 2,530
2,593
2,692
2,755
BAJFINANCE 1,939 2,005
2,042
2,107
2,145
BAJAJFINSV 4,353 4,511
4,613
4,771
4,873
BPCL
302
307
314
319
325
BHARTIARTL
518
539
551
572
585
INFRATEL
173
181
187
195
201
BRITANNIA 2,995 3,051
3,087
3,143
3,179
CIPLA
549
560
577
587
604
COALINDIA
123
125
127
129
131
DRREDDY 3,664 3,719
3,814
3,869
3,965
EICHERMOT 13,595
13,881
14,075
14,361
14,556
GAIL
85
87
90
92
96
GRASIM
481
500
510
529
539
HCLTECH
509
518
529
538
549
HDFCBANK
856
879
894
917
932
HDFC 1,552 1,613
1,648
1,709
1,744
HEROMOTOCO
1,975
2,0
45
2,089
2,159
2,203
HINDALCO
114
118
120
123
126
HINDUNILVR 1,965 1,988
2,008
2,031
2,051
ICICIBANK
301
311
318
328
334
IOC
73
74
75
76
78
INDUSINDBK
415
431
440
456
465
INFY
669
678
685
694
700
ITC
154
160
163
168
171
JSW STEEL
162
170
175
183
188
KOTAKBANK 1,116 1,137
1,157
1,178
1,198
LT
797
806
813
821
828
M&M
374
384
389
399
404
MARUTI 4,581 4,766
4,875
5,061
5,170
NESTLEIND 17,149
17,306
17,541
17,698
17,933
NTPC
83
87
90
95
98
ONGC
73
75
76
78
79
POWERGRID
155
159
162
166
169
RELIANCE 1,401 1,440
1,504
1,543
1,608
SHREECEM 18,110
18,618
18,925
19,434
19,741
SBIN
158
162
165
170
173
SUNPHARMA
449
457
463
470
476
TCS 1,893 1,921
1,939
1,967
1,985
TATAMOTORS
82
84
86
88
90
TATASTEEL
259
267
272
279
284
TECHM
518
526
533
540
547
TITAN
811
829
840
858
869
ULTRACEMCO 3,214 3,281
3,343
3,411
3,473
UPL
355
365
374
383
392
VEDANTA
75
82
86
93
98
WIPRO
180
184
186
189
191
ZEEL
145
150
153
158
162
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Technical & Derivatives Report
May 13, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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