Technical & Derivatives Report
December 18, 2017
Sensex (33463) / Nifty (10333)
Exhibit 1: Nifty Daily Chart
Last week, market behaved like a double-edged sword as we saw
some volatile sessions with slightly wider trading range. The rise
in volatility was quite evident on the back of major events on
global as well as domestic front. Eventually, the bulls had the
upper hand as we saw index closing at the highest point of the
week after all exit polls indicating BJP’s victory with a majority in
Gujarat assembly elections.
Technically speaking, market took a u-turn precisely after testing
61.8% retracement level (10140) of the recent up move. Last
week, we were of the opinion that 10330 would be seen as a
trend deciding level and the Nifty has managed to close around
it. But, the kind of follow up move was expected after the
breakout was clearly missing. And now, the market has factored
in BJP’s win with majority and unless there is more surprising
outcome from final results, it would be difficult for this rally to
sustain at higher levels. Hence, now, we consider 10410 as a
trend deciding level and any sustainable move beyond this may
result into an extension of the rally. Having said that if we look at
the daily chart meticulously, the way Nifty closed with a small
candle precisely at the pull back level of the ‘Upward Sloping
Trend Line’, we do not want to get gung ho with the move until
we get some further confirmation. The wise strategy would be to
keep booking profits and re-enter only above 10410. Till then it’s
advisable to stay light and in case of Nifty breaking
the 10250 mark, we would see resumption of recent corrective
move in the market.
Key Levels
Support 1 - 10280
Resistance 1 - 10360
Support 2 - 10250
Resistance 2 -10410
Nifty Bank Outlook - (25440)
Exhibit 2: Nifty Bank Daily Chart
The last day of the volatile trading week started with a gap up
opening as the market participants seemed optimist on the
outcome of the Gujarat elections polls. However, the Nifty Bank
index traded range bound for the entire session and closed
around the resistance zone of 24450-25500.
Although the Nifty Bank index opened gap up, there was no
follow up buying seen in Friday's session. Due to the outcome of
the elections results, there is a higher probability of a directional
move in today's session. Technically, the recent trend in the Nifty
Bank index has been a corrective one and hence, only a
sustainable move above the resistance zone of 25450-25500
could then lead to a trended up move. On the flipside, the lower
end of Friday's gap, i.e. 25200-25300 becomes a crucial support
for near term. Traders are advised to avoid taking undue risk and
keep a tab on the above-mentioned levels for a confirmation.
Key Levels
Support 1 - 25300
Resistance 1 - 25450
Support 2 - 25200
Resistance 2 - 25500
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Technical & Derivatives Report
December 18, 2017
Comments
Nifty Vs OI
The Nifty futures open interest has decreased by 4.96%
BankNifty futures open interest has decreased by 15.11%
as market closed at 10333.25 levels.
The Nifty December future closed with a premium of
26.25 points against a premium of 24 points in last
trading session. The January series closed at a premium
of 58.85 points.
The INDIA VIX has decreased from 16.40 to 14.94. At
the same time, the PCR-OI of Nifty has increased from
1.28 to 1.29 level.
Few of the liquid counters where we have seen high cost
of carry are RCOM, JUSTDIAL, EQUITAS, BATAINDIA
and JPASSOCIAT.
Views
FIIs were net sellers in cash market segment to the tune
OI Gainers
of Rs. 921 crores. At the same time, they were sold
OI
PRICE
marginally in index futures with huge amount of fall in
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
open interest, indicating unwinding of both long and
BATAINDIA
2468400
17.49
735.25
2.00
short positions on Friday’s trading session.
APOLLOTYRE
10860000
14.63
250.35
3.49
In index options front, they were buyers of Rs. 284 crores
JETAIRWAYS
7154400
14.02
706.15
4.34
with rise in open interest. In call options, we saw some
CIPLA
9486000
13.82
578.60
-2.39
OI addition in
10450,
10500 and
10700 strikes;
PIDILITIND
1201000
9.48
867.40
0.52
followed by unwinding in 10200-10400 call options. On
PCJEWELLER
10038000
9.31
446.15
2.91
the flip side, 10200-10350 put options added good
BHEL
54720000
8.91
90.00
0.17
amount of fresh positions; while, 9800-10100 sheds
VGUARD
2679000
7.85
231.00
-0.24
decent positions. However, highest OI concentration
remains intact in 10500 and 10000 put options.
Last week was indeed a roller coaster ride for our
OI Losers
market; we witnessed index hovering in the range of
OI
PRICE
10100-10400 with volatility on the higher side. The
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
volatility index surpassed its resistance zone of 15.50-
KOTAKBANK
8793600
-10.32
1033.40
0.94
15.60 after the period of ten months; this was expected
ESCORTS
4484700
-8.95
696.25
4.71
this time owing to the Gujarat elections. We witnessed
SIEMENS
1007000
-8.83
1164.50
1.47
decent amount of unwinding in Nifty as well as BankNifty
HEROMOTOCO
1707000
-7.51
3506.50
0.99
index during last week; stronger hands (FIIs) too
BERGEPAINT
2039400
-7.49
251.15
1.91
unwounded their positions. At present, 10350-10400 is
APOLLOHOSP
1429500
-6.96
1197.00
-0.53
a strong hurdle for index; whereas support is placed
FEDERALBNK
75867000
-6.71
107.80
3.41
around 10000 mark. Looking at the above data points,
ADANIPOWER
110820000
-6.24
35.40
3.06
we would advise traders avoiding any aggressive
positions in either direction until we see a breakout from
the above mentioned range.
Put-Call Ratio
Historical Volatility
SCRIP
PCR-OI
PCR-VOL
SCRIP
HV
NIFTY
1.29
1.10
M&M
26.24
BANKNIFTY
1.30
0.97
FEDERALBNK
31.71
RELIANCE
0.41
0.50
YESBANK
32.77
TATAMOTORS
0.36
0.43
VEDL
39.42
INFY
1.03
0.58
GSFC
44.11
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Technical & Derivatives Report
December 18, 2017
FII Statistics for December 15, 2017
Turnover on December 15, 2017
Open Interest
No. of
Turnover
Change
Detail
Buy
Sell
Net
Instrument
Value
Change
Contracts
( in Cr. )
(%)
Contracts
(in Cr.)
(%)
INDEX
INDEX
2680.34
2769.99
(89.66)
181025
14648.50
(12.13)
223597
19273.36
-7.96
FUTURES
FUTURES
INDEX
INDEX
43851.73
43567.75
283.98
1259979
100467.93
3.98
4171438
359056.52
-68.99
OPTIONS
OPTIONS
STOCK
8008.76
7377.86
630.90
1052903
73555.37
0.51
STOCK
FUTURES
612376
43746.97
11.92
FUTURES
STOCK
STOCK
5739.60
5834.87
(95.28)
69986
5078.23
2.50
446602
32918.16
10.50
OPTIONS
OPTIONS
Total
60280.42
59550.48
729.95
2563893
193750.03
1.20
TOTAL
5454013
454995.01
-63.53
Nifty Spot = 10333.25
Lot Size = 75
Bull-Call Spreads
Bear-Put Spreads
Action
Strike
Price
Risk
Reward
BEP
Action
Strike
Price
Risk
Reward
BEP
Buy
10300
151.05
Buy
10300
192.35
56.80
43.20
10356.80
58.90
41.10
10241.10
Sell
10400
94.25
Sell
10200
133.45
Buy
10300
151.05
Buy
10300
192.35
98.00
102.00
10398.00
98.30
101.70
10201.70
Sell
10500
53.05
Sell
10100
94.05
Buy
10400
94.25
Buy
10200
133.45
41.20
58.80
10441.20
39.40
60.60
10160.60
Sell
10500
53.05
Sell
10100
94.05
Note: Above mentioned Bullish or Bearish Spreads in Nifty (December Series) are given as an information and not as a recommendation.
Nifty Put-Call Analysis
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Technical & Derivatives Report
December 18, 2017
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
395
398
403
406
411
AMBUJACEM
261
263
265
267
269
ASIANPAINT
1,104
1,112
1,123
1,130
1,142
AUROPHARMA
659
663
670
674
681
AXISBANK
538
543
548
553
557
BAJAJ-AUTO
3,108
3,153
3,209
3,255
3,310
BAJFINANCE
1,673
1,701
1,720
1,749
1,768
BPCL
513
518
521
527
530
BHARTIARTL
506
512
521
527
536
INFRATEL
348
351
356
360
365
BOSCHLTD
19,245
19,488
19,844
20,086
20,443
CIPLA
558
567
582
591
606
COALINDIA
261
266
269
274
277
DRREDDY
2,292
2,332
2,356
2,396
2,420
EICHERMOT
28,663
29,071
29,318
29,726
29,972
GAIL
475
481
490
495
504
HCLTECH
880
886
891
897
903
HDFCBANK
1,840
1,857
1,872
1,889
1,905
HDFC
1,702
1,713
1,724
1,734
1,745
HEROMOTOCO
3,447
3,475
3,493
3,522
3,540
HINDALCO
237
240
242
245
247
HINDPETRO
436
440
443
447
451
HINDUNILVR
1,299
1,312
1,323
1,336
1,348
IBULHSGFIN
1,185
1,195
1,202
1,213
1,220
ICICIBANK
297
300
305
308
314
IOC
405
409
413
417
421
INDUSINDBK
1,632
1,655
1,670
1,692
1,707
INFY
1,006
1,014
1,020
1,029
1,035
ITC
261
263
265
267
269
KOTAKBANK
1,013
1,021
1,029
1,038
1,046
LT
1,192
1,198
1,207
1,213
1,222
LUPIN
847
854
861
868
875
M&M
1,422
1,453
1,471
1,502
1,520
MARUTI
9,094
9,130
9,183
9,219
9,272
NTPC
175
176
177
179
180
ONGC
180
182
184
185
188
POWERGRID
195
197
200
202
204
RELIANCE
908
914
923
929
939
SBIN
307
309
314
317
322
SUNPHARMA
511
515
519
523
528
TCS
2,508
2,527
2,556
2,574
2,603
TATAMOTORS
401
403
406
408
411
TATASTEEL
686
690
696
700
705
TECHM
482
491
505
514
528
ULTRACEMCO
4,231
4,271
4,299
4,340
4,367
UPL
706
712
721
727
736
VEDANTA
286
292
296
302
306
WIPRO
285
287
289
291
293
YESBANK
303
309
313
320
324
ZEEL
562
567
573
578
585
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Technical & Derivatives Report
December 18, 2017
Research Team Tel: 022 - 39357800
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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