www.angelbroking.com
Technical & Derivatives Report
December 14, 2020
Nifty
Bank Out
look
-
(
30605
)
On Friday, the Bank Nifty opened on a flat note and then inched
higher during the first hour. Subsequently, the bank index
witnessed profit booking for the major part to mark an intraday
low of 30328 however buying in the penultimate hour pushed
prices back into the positive zone to eventually end with gains of
0.31% tad above 30600 levels. During the last week, prices
continued with their northward journey however the ride was not
that smooth as we had witnessed in the earlier weeks and we did
witness some in-between intraday hiccups. We have been vocal
since last week that prices have reached a key level that is a
confluence zone formed by the higher end of the rising wedge on
the daily chart and 88.6% retracement of all-time high to March
lows. Going ahead, with prices at the resistance level and with
oscillators in deep overbought territory one should avoid
aggressive positions overnight and have a proper exit setup
to existing positions. Immediate support is placed around 30300
- 30000 whereas resistance is seen around 30850 - 31000 levels.
Key Levels
Support 1 – 30300 Resistance 1 – 30850
Support 2 – 30000 Resistance 2 – 31000
Exhibit 1: Nifty Daily Chart
Sensex (46099) / Nifty (13514)
The merry run continues across the globe and it’s been nearly one
and half months now, markets are just continuing their gravity
defying moves. During last week, our markets started on a flat note
but immediately resumed its upward momentum. For the
subsequent two trading sessions, the rally continued and in the
process, Nifty kept posting new record highs one after another. The
similar sort of one sided move was missing in the latter half of the
week as markets saw some volatile swings to test the 13400 mark.
Eventually, due to late recovery on both the occasions, Nifty
managed to close tad above 13500 on Friday with weekly gains of
nearly two percent.
Our markets reached yet another milestone of 13500 with ease and
few heavyweight themes did well to guide markets at new record
highs. Since we are trading in an uncharted territory, sky's the limit
for our market; but in our sense, we have now reached the extreme
zone, at least for the current vertical move. With a broader view,
14000 and beyond levels are very much possible, but for a time
being; 13500 - 13600 are the extreme levels as per few key Fibonacci
ratios. Let's see why these levels are considered important. The
'Golden Ratio' (161%) on the 'Price Extension' of the recent previous
up move is placed at current levels. This level coincides with the 200%
‘Price Extension’ of the first up leg from March lows. More
importantly, if we connect all important highs from March 2015 on
the monthly chart, we can see a 'Multi-year Upward Sloping Trend
Line' precisely converging around the same levels. Hence, some
cooling off around this crucial junction cannot be ruled out.
Yes, we agree to the fact that a strong trend up or down, doesn't
necessarily follow any theory. But there is no harm being a bit
conservative at times. Hence, since the last 3 - 4 days, we have been
continuously advising booking profits in the rally and avoiding
aggressive bets overnight. On the daily chart, we can now see a
‘Dragonfly Doji’ pattern and with the last two day’s intraday swings,
13400 has become a crucial support. The moment Nifty slides and
sustains below this point (which is possible anytime soon), we would
see the market experiencing some decent profit booking towards
13100 – 12900 in days to come.
Key Levels
Support 1 – 13400 Resistance 1 – 13550
Support 2 – 13350 Resistance2 – 13600
Exhibit 2: Nifty Bank Daily Chart
www.angelbroking.com
Technical & Derivatives Report
December 14
, 2020
Nifty Vs OI
12400
12600
12800
13000
13200
13400
13600
13800
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
11/20 11/24 11/26 12/1 12/3 12/7 12/9 12/11
(`000)
Openinterest Nifty
View
We had a positive start for the week and Nifty rallied
higher to register new record highs above 13500 mark.
In last couple of sessions, we witnessed some volatility
but still, the index managed to end on a strong note
above 13500.
FIIs were net buyers in the cash segment to the tune of
Rs. 4195 crore. In index future segment, they bought
worth Rs. 291 crores with decrease in open interest
indicating some short covering on Friday.
FII’s were buyers in the cash segment throughout the
week, but they preferred to book some profits in the
index futures segment. Also, one of the notable data
was the premium in Nifty futures which reduced
sharply on Friday. The overall data indicates that the
trend still continued to be positive, however 13600
would be resistance for the coming week which needs
to be surpassed for a continuation of the upmove. On
the flipside, 13400 becomes a crucial support which if
breached, it could then result into a decent profit
booking. Traders are advised to keep a watch on the
above mentioned levels and lighten up longs if the
index breach the support of 13400.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 2.21%
Bank Nifty futures open interest has increased by 0.45%
as market closed at 13513.85 levels.
The Nifty December future closed with a premium 4.5
point against a premium of 46.05 point in last trading
session. The January series closed at a premium of 43.10
point.
The INDIA VIX remained increased from 18.71 to 18.79.
At the same time, the PCR-OI of Nifty remained
unchanged at 1.52.
Few of the liquid counters where we have seen high cost
of carry are IDEA, GMRINFRA, AMBUJACEM,SAIL AND
TATACHEM.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ONGC 51813300 18.26 96.80 5.59
TVSMOTOR 5959800 15.49 484.20 -2.72
NATIONALUM 53346000 12.96 42.70 1.90
GAIL 24210900 12.76 125.85 4.81
ACC 3553500 12.40 1608.70 -1.54
IDEA 717990000 10.61 10.10 3.03
SAIL 90174000 9.00 57.75 3.48
NMDC 34464800 8.98 110.85 2.77
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ICICIPRULI 4327500 -14.11 498.65 0.09
LICHSGFIN 10376000 -11.56 353.30 1.57
PNB 109364000 -9.26 40.50 2.48
HDFCLIFE 15143700 -9.15 664.50 0.57
BHARATFORG 5562000 -8.83 552.25 2.08
CUMMINSIND 1906800 -8.47 582.65 0.73
COFORGE 495000 -7.89 2498.00 0.50
INFRATEL 10494400 -7.41 244.90 -0.49
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.52 1.00
BANKNIFTY 0.97 0.93
RELIANCE 0.55 0.35
ICICIBANK 0.65 0.46
INFY 0.57 0.42
Historical Volatility
SCRIP HV
NTPC 39.02
APOLLOTYRE 52.68
ONGC 53.90
GAIL 49.01
PNB 56.46
www.angelbroking.com
Technical & Derivatives Report
December 14
, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (December Series) are given as an information and not as a recommendation.
Nifty Spot =
13513.85
FII Statistics for December 11, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
4472.34
4181.42
290.92
125528
12254.30
(5.18)
INDEX
OPTIONS
225212.94
225740.32
(527.38) 798065
76407.91
17.17
STOCK
FUTURES
13058.27
13421.53
(363.26) 1322132
104451.76
0.33
STOCK
OPTIONS
5709.74
5773.92
(64.18) 84432
6724.66
5.04
Total 248453.29
249117.19
(663.90) 2330157
199838.63
5.36
Turnover on December 11, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
3,87,123 33420.48 15.45
Index Options
1,83,63,946
15,93,602.99
-71.90
Stock Futures
7,81,640 61755.58 7.59
Stock Options 13,78,252
1,13,148.47
18.91
Total
2,09,10,961
18,01,927.52
-69.21
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 13500 211.50
52.40 47.60 13552.40
Sell 13600 159.10
Buy 13500 211.50
95.45 104.55 13595.45
Sell 13700 116.05
Buy 13600 159.10
43.05 56.95 13643.05
Sell 13700 116.05
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 13500 194.80
38.45 61.55 13461.55
Sell 13400 156.35
Buy 13500 194.80
70.40 129.60 13429.60
Sell 13300 124.40
Buy 13400 156.35
31.95 68.05 13368.05
Sell 13300 124.40
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
4000,000
12700 12800 12900 13000 13100 13200 13300 13400 13500 13600 13700 13800 13900 14000
Call Put
www.angelbroking.com
Technical & Derivatives Report
December 14
, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
456
4
61
468
473
480
ASIANPAINT 2,476 2,498
2,518
2,540
2,560
AXISBANK
594
604
618
627
641
BAJAJ-AUTO 3,265 3,296
3,317
3,348
3,368
BAJFINANCE 4,762 4,803
4,846
4,887
4,930
BAJAJFINSV 8,840 8,918
9,028
9,106
9,216
BPCL
384
390
399
406
414
BHARTIARTL
492
498
503
510
515
BRITANNIA 3,662 3,697
3,737
3,773
3,813
CIPLA
745
751
758
764
771
COALINDIA
132
135
138
141
144
DIVISLAB 3,551 3,596
3,668
3,714
3,786
DRREDDY 4,929 4,973
5,029
5,072
5,128
EICHERMOT 2,421 2,446
2,477
2,502
2,533
GAIL
116
121
125
130
134
GRASIM
892
897
906
912
921
HCLTECH
840
851
866
878
893
HDFCBANK 1,362 1,372
1,384
1,394
1,406
HDFCLIFE
650
657
663
670
676
HDFC 2,250 2,273
2,295
2,318
2,341
HEROMOTOCO 3,127 3,156
3,198
3,227
3,268
HINDALCO
237
240
244
247
251
HINDUNILVR 2,312 2,344
2,364
2,396
2,416
ICICIBANK
502
509
513
520
524
IOC
91
93
94
96
97
INDUSINDBK
906
915
924
933
942
INFY 1,147 1,155
1,163
1,172
1,180
ITC
211
214
216
218
220
JSW STEEL 3
52
356
361
365
370
KOTAKBANK 1,879 1,900
1,914
1,935
1,949
LT 1,163 1,179
1,198
1,213
1,233
M&M
708
718
732
742
757
MARUTI 7,647 7,690
7,743
7,786
7,839
NESTLEIND 18,094
18,247
18,354
18,507
18,614
NTPC
96
99
101
104
106
ONGC
86
9
1
98
103
110
POWERGRID
190
192
194
195
197
RELIANCE 1,942 1,974
2,006
2,038
2,070
SBILIFE
835
842
853
860
870
SHREECEM 23,410
23,607
23,783
23,980
24,156
SBIN
267
270
273
276
279
SUNPHARMA
557
562
568
573
579
TCS 2,742 2,763
2,785
2
,806
2,828
TATAMOTORS
174
176
179
181
184
TATASTEEL
609
615
620
627
632
TECHM
908
914
922
928
937
TITAN 1,412 1,427
1,438
1,454
1,465
ULTRACEMCO 4,921 4,968
5,003
5,050
5,086
UPL
413
424
440
452
468
WIPRO
348
351
355
358
363
www.angelbroking.com
Technical & Derivatives Report
December 14
, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: tec[email protected]king.com
For Derivatives Queries E-mail: [email protected].com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration
number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for
accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed
public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits
and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
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]g.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com