www.angelbroking.com
Technical & Derivatives Report
January 16, 2020
Sense
x (
41873
(1
2343
)
We had a weak start for the day in the wake of not so favourable
news from the global peers. The selling pressure intensified in
the initial hour itself to test 12300 first and then a gradual decline
led to sub-12300 levels. However, as expected, we saw massive
buying interest at lower levels which accelerated in the final hour
of the day to trim major portion of losses. Eventually, Nifty
managed to reclaim 12300 with some authority.
The banking index continues its underperformance and yesterday
was the main culprit to drag the benchmark index lower.
Fortunately, the Nifty took a complete U-turn precisely from our
mentioned support zone 12296 12260 and eventually closed
tad below 12350. What we are witnessing now is a typical
characteristic of Bull Run. Generally, in a falling market, every
minor positivity turns into a selling opportunity at higher levels
and in a strong uptrend, every mild negative factor gets absorbed
immediately and traders pounces on such dips to create fresh
longs in the market. Thus, despite market entering an overbought
territory, we continue with our ‘Buy on dips’ strategy. As far as
levels are concerned, the index is likely to gradually head towards
next milestones of 12400 – 12500 in coming days. On the
flipside, 12296 followed by 12260 now becomes a sacrosanct
support zone.
Key Levels
Support 1 – 12296 Resistance 1 – 12400
Support 2 – 12260 Resistance 2 – 12500
Exhibit 1: Nifty Daily Chart
Nifty Bank Outlook
-
(
31825
)
The BankNifty index started trading for the session on a negative
note and corrected during the day upto 31760. A mild recovery
in the last hour of the trade trimmed some of the losses and the
index ended the session with a loss of over three-fourths of a
percent. Since last three trading sessions, BankNifty was
consolidating in a narrow range and it breached the lower end
of the range in yesterday's session at opening. This led to some
sell off in the index and hence the banking space witnessed
underperformance in yesterday's session. The banking
heavyweights seems to be undergoing a consolidation phase and
hence, the BankNifty has been a relative underperformer in spite
of the positive momentum seen in the broader markets. However,
the broader trend continues to be up as there are no signs of a
reversal of the trend. Hence traders are advised to focus on a
stock specific approach at the moment.
Key Levels
Support 1 – 31670 Resistance 1 – 32000
Support 2 – 31450 Resistance 2 – 32300
Exhibit 2: Nifty Bank Daily Chart
Yesterday
, despite banking being the weakest link, some of the
other heavyweights did extremely well and pushed the index at
elevated levels in the final hour. However, once again the real
show-stealer becomes the broader end of the spectrum. We
have been quite vocal on the midcap index giving a strong rally
since last few days. The anticipation clearly is turning into a
reality as there is no stopping for recent dream run for the
broader market. Mind you, this is still a beginning as we expect
the midcap index to compensate further for its long two years’
underperformance.
www.angelbroking.com
Technical & Derivatives Report
January 16, 2020
Nifty Vs OI
Views
We started-off yesterday’s session with a downside gap
and saw follow-up selling to drag index below 12300
mark. However, index consolidated near 12300 in the
mid of the day and then smart buying interest in the
final hour recovered a major portion of losses to
eventually conclude marginally lower.
FIIs were net buyers in the cash market segment to the
tune of Rs. 280 crores. In index futures, they sold worth
Rs. 910 crores with some rise in open interest,
indicating a blend of short formation along with long
unwinding.
In F&O space, we witnessed a decent amount of long
formation in Nifty futures in the recent upmove;
however, some profit booking took place in yesterday’s
trade. For the banking index, the open interest activity
remained muted. In options front, put writers continued
adding positions in 12200 and 12300 strikes. At the
same time, fresh longs were formed in 12400-12500
call options. Considering the final hour recovery and
the above data points, we maintain our optimistic
stance on market and would advise traders’ adding
longs on declines.
Comments
The Nifty futures open interest has decreased by 2.99%
Bank Nifty futures open interest has decreased 0.31% as
market closed at 12343.30 levels.
The Nifty January future closed with a premium of 34.75
points against a premium of 34.70 points in last trading
session. The February series closed at a premium of
74.85 points.
The INDIA VIX has increased from 13.91 to 14.12.
At the same time, the PCR-OI of Nifty has decreased
from 1.68 to 1.57.
Few of the liquid counters where we have seen high cost
of carry are GMRINFRA, IDEA, DISHTV, NCC and
ASHOKLEY.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
NTPC 53472000 25.96 123.85 0.45
YESBANK 315330400 22.06 39.75 5.39
INDUSINDBK 15166400 19.98 1400.50 -5.47
CASTROLIND 8130300 16.92 133.40 4.07
IGL 9787250 10.84 447.75 5.16
RAMCOCEM 1496000 10.26 825.45 0.25
GAIL 47552610 8.40 131.65 1.46
ACC 3983200 7.93 1515.70 0.05
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
AMARAJABAT 1434400 -9.85 773.10 1.78
CONCOR 6114456 -5.32 557.10 -2.02
BEL 31728000 -5.28 103.85 3.89
JUSTDIAL 2164400 -5.21 581.50 0.85
TATACHEM 3516300 -4.99 730.00 0.36
NMDC 23652000 -4.87 131.10 4.21
HEROMOTOCO 4137600 -4.39 2476.30 2.48
IDEA 433748000 -4.05 6.00 -1.63
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.57 0.99
BANKNIFTY 0.85 0.84
RELIANCE 0.55 0.48
ICICIBANK 0.58 0.66
INFY 0.71 0.75
Historical Volatility
SCRIP HV
MGL 43.74
IGL 32.30
WIPRO 24.16
PEL 45.64
CASTROLIND 33.07
www.angelbroking.com
Technical & Derivatives Report
January 16, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.
Nifty Spot
=
123
43.30
Lot Size = 75
FII Statistics for
January
15
, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
1954.24 2864.54 (910.30) 159145 13840.79 0.58
INDEX
OPTIONS
249288.67 249186.16 102.51
761197 63923.90 0.06
STOCK
FUTURES
11941.05 12821.69 (880.64) 1528627 104091.70 0.81
STOCK
OPTIONS
4595.49 4640.21 (44.72) 82222 5685.58 10.37
Total 267779.45
269512.60
(1733.15) 2531191
187541.97
0.85
Turnover on
January
15
, 20
20
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
INDEX
FUTURES
242535 18063.66 6.50
INDEX
OPTIONS
17355940 1258749.37 36.23
STOCK
FUTURES
707911 48136.74 2.17
STOCK
OPTIONS
784302 56079.47 -0.55
TOTAL 1,90,90,688
1381029.24 32.22
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 12400 94.10
42.60 57.40 12442.60
Sell 12500 51.50
Buy 12400 94.10
69.30 130.70 12469.30
Sell 12600 24.80
Buy 12500 51.50
26.70 73.30 12526.70
Sell 12600 24.80
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 12300 75.20
25.45 74.55 12274.55
Sell 12200 49.75
Buy 12300 75.20
42.75 157.25 12257.25
Sell 12100 32.45
Buy 12200 49.75
17.30 82.70 12182.70
Sell 12100 32.45
Nifty Put-Call Analysis
www.angelbroking.com
Technical & Derivatives Report
January 16, 2020
Da
ily
Pivot
Levels for Nifty Constituents
Scrips S2 S1 PIVOT R1 R2
ADANIPORTS 384 387
389 393 395
ASIANPAINT 1,798 1,820
1,832 1,855 1,867
AXISBANK 733 740
744 751 755
BAJAJ-AUTO 3,072 3,098
3,118 3,144 3,164
BAJFINANCE 4,149 4,178
4,199 4,228 4,249
BAJAJFINSV 9,453 9,521
9,570 9,638 9,687
BPCL 458 463
468 473 478
BHARTIARTL 461 465
468 472 475
INFRATEL 242 244
248 251 255
BRITANNIA 3,073 3,093
3,114 3,134 3,155
CIPLA 476 480
483 487 491
COALINDIA 209 211
213 214 216
DRREDDY 2,875 2,897
2,922 2,943 2,968
EICHERMOT 20,175 20,400
20,525 20,750 20,875
GAIL 128 130
131 133 134
GRASIM 739 753
761 774 782
HCLTECH 589 592
595 599 602
HDFCBANK 1,268 1,276
1,282 1,290 1,296
HDFC 2,438 2,463
2,479 2,505 2,521
HEROMOTOCO 2,390 2,433
2,457 2,500 2,524
HINDALCO 208 211
213 216 218
HINDUNILVR 1,986 2,004
2,015 2,033 2,045
ICICIBANK 528 532
534 538 541
IOC 124 125
126 127 128
INDUSINDBK 1,346 1,373
1,418 1,445 1,490
INFY 756 762
768 774 780
ITC 240 241
242 243 244
JSW STEEL 274 278
281 285 288
KOTAKBANK 1,655 1,665
1,676 1,686 1,697
LT 1,310 1,317
1,327 1,333 1,343
M&M 552 561
566 575 580
MARUTI 7,295 7,389
7,447 7,541 7,599
NESTLEIND 14,612 14,736
14,843 14,967 15,074
NTPC 121 122
124 125 126
ONGC 124 124
125 125 126
POWERGRID 191 193
194 196 197
RELIANCE 1,506 1,515
1,527 1,536 1,549
SBIN 318 321
325 328 332
SUNPHARMA 441 445
448 452 455
TCS 2,181 2,204
2,217 2,241 2,254
TATAMOTORS 191 196
199 203 206
TATASTEEL 484 493
498 507 513
TECHM 781 788
796 803 811
TITAN 1,161 1,173
1,182 1,194 1,203
ULTRACEMCO 4,365 4,436
4,481 4,551 4,596
UPL 567 577
583 592 599
VEDANTA 160 162
164 166 168
WIPRO 241 245
250 254 260
YESBANK 35 37
39 42 44
ZEEL 262 267
271 276 280
www.angelbroking.com
Technical & Derivatives Report
January 16, 2020
*
Research Team Tel: 022
-
39357800
Website:
www.angelbroking.com
For Technical Queries E-mail: technicalresearch-cs[email protected]elbroking.com
For Derivatives Queries E-mail: derivatives.des[email protected]broking.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.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.