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Technical & Derivatives Report
April 20, 2020
Sensex (31589) / Nifty (9267)
Previous week’s spectacular rally was followed by a sluggish start
for the new trading week on Monday. The index consolidated
with mildly negative bias. The similar action was seen on the
subsequent session as well. On Thursday, the index opened
lower and then had a decent recovery to close tad below the
9000 mark. However the real action of the week was mainly seen
on Friday as we had a massive gap up opening followed by
indecisive swings throughout the first half. During the latter half,
strong buying emerged across the board to conclude the week
well above 9200 by adding couple of percent gains to the bulls’
kitty.
Our market was clearly struggling at higher levels for the major
part of the week but we also cannot deny the fact that the
market was reluctant to fall as well. Every time Nifty approached
8800-8850, the buying tends to emerge and finally we saw
surpassing of 9200 on a closing basis. Technically, this
development was crucial for our markets as we can now see the
immediate base getting shifted higher from 8000 to 8650-8800.
On the flip side, this opens up the floodgates to extend this relief
rally towards 9500-9800 in coming days. Importantly, the
banking index which has been the weakest link of late, has finally
made a strong come back. This certainly provides credence to
the move.
Nifty Bank Outlook
-
(
20681
)
On Friday, Bank Nifty Index started with a big gap up opening
however after key RBI announcement the bank index traded with
irregular moves for the most part of the session. Subsequently in
the last hour, the banking basket witnessed a broad based
buying to eventually end with gains of 6.61% at 20681.
For the last few sessions, the bank index was trading in the range
of 18700 and 20200 with the higher band acting as stiff
resistance. On Friday, the bank index broke above the higher
range of consolidation with a bullish gap and have closed above
20EMA after a long time. The heavy weight pvt banks as well
showed stong performance and going ahead we expect the bank
index to outperform after it recent sluggish performance. Traders
are hence advised to have a stock specific long approach from
the stocks within this basket. As far as levels are concerned
immediate support is placed at 20200 and 19500 whereas
resistance is at 21100 and 21460 levels.
Key Levels
Support 1 – 20200 Resistance 1 – 21100
Support 2 – 19500 Resistance 2 – 21460
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
Apart from banking, Auto index has shown some strength along
with the midcap space which has been buzzing throughout the
week. At present, traders are advised to keep following stock
specific approach and since we are still not completely out of
the woods when it comes to Coronavirus pandemic, one should
keep booking profits on a regular basis.
Key Levels
Support 1 – 9000 Resistance 1 – 9380
Support 2 – 8800 Resistance 2 – 9500
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Technical & Derivatives Report
April 20, 2020
Nifty Vs OI
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
,0
5,000
10,000
15,000
20,000
25,000
3/20 3/24 3/26 3/30 4/1 4/7 4/9 4/15 4/17
(`000)
Openinterest Nifty
View
s
During the week, the Nifty traded within the range of
8800-9320 and ended the week near the higher end of
the range. Nifty gained 3.05% on Friday whereas 1.70%
against the previous week close.
FIIs were net sellers in the cash market segment to the
tune of Rs. 1392 crores. In index futures, the activity
was muted as they sold worth 6.56 crores with fall in
open interest.
FII’s covered some of their short positions in the index
futures segment and their Long Short Ratio’ is now
around 50 percent compared to about 30 percent at
the start of the series. India VIX corrected by around
15 percent to end the week around 42. If we look at
the options data, 9000 put option has decent amount
of open interest in the monthly series and during intra
week, we did not see any unwinding inspite of the
index sneaking below the same. Thus, for the near
term 9000-8800 is now seen as a crucial support for
Nifty. Till the mentioned support is intact, traders
should prefer to trade with a positive bias for a
probable target around 9500.
C
om
m
e
n
t
s
The Nifty futures open interest has increased by 2.05%
Bank Nifty futures open interest has decreased by 13.36
% as market closed at 9266.75 levels.
The Nifty April future closed with a premium of 44.55
points against a premium of 42.65 points in last trading
session. The May series closed at a premium of 69.2
points.
The INDIA VIX has decreased from 46.10 to 42.59.
At the same time, the PCR-OI of Nifty increased from
1.27 to 1.38.
Few of the liquid counters where we have seen high cost
of carry are, ADANIPOWER, PNB, GODREJPROP,
BALKRISHNAIND and BEL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CESC 1171200 29.90 588.65 13.13
JUBLFOOD 2011500 16.74 1548.00 1.83
UJJIVAN 2374900 16.51 189.55 14.54
SRTRANSFIN 2485200 14.20 802.10 14.83
APOLLOHOSP 927500 12.70 1374.15 -3.04
MANAPPURAM 12132000 11.71 107.95 3.38
CADILAHC 5706800 11.52 333.80 -2.41
TVSMOTOR 4014900 11.18 300.95 9.30
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
APOLLOTYRE 3966000 -16.75 98.20 4.09
IBULHSGFIN 10384800 -12.97 125.35 18.19
RAMCOCEM 641600 -7.71 542.10 2.84
COLPAL 1712200 -7.59 1378.35 -1.97
JSWSTEEL 24281100 -6.13 177.30 4.16
MUTHOOTFIN 1920000 -5.40 706.80 2.09
ACC 1610400 -4.85 1172.80 2.09
POWERGRID 37996000 -4.20 167.75 2.97
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.38 0.89
BANKNIFTY 1.28 0.72
RELIANCE 0.87 0.59
ICICIBANK 0.99 0.61
INFY 0.76 0.82
Historical Volatility
SCRIP HV
BHARATFORG 131.21
CESC 103.89
EICHERMOT 87.07
EQUITAS 175.40
UJJIVAN 139.60
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Technical & Derivatives Report
April 20, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (April Series) are given as an information and not as a recommendation.
Nifty
Spot = 9266.75
FII Statistics for April 17, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
8285.26
8291.82
(6.56) 135666
8713.27
(1.65)
INDEX
OPTIONS
130348.80
130173.53
175.27
507198
33510.54
11.69
STOCK
FUTURES
16176.82
16905.47
(728.65) 1453954
73968.26
0.42
STOCK
OPTIONS
2960.85
2962.79
(1.94) 42354
2057.72
22.98
Total 157771.73
158333.61
(561.88) 2139172
118249.79
3.13
Turnover on April 17, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 7,68,757 40127.66 18.90
Index Options 1,14,88,259
6,14,519.31 -66.83
Stock Futures 10,20,990 49770.86 16.54
Stock Options 7,55,220 38051.39 42.99
Total 1,40,33,226
7,42,469.22 -62.03
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 9300 280.85
52.20 47.80 9352.20
Sell 9400 228.65
Buy 9300 280.85
98.95 101.05 9398.95
Sell 9500 181.90
Buy 9400 228.65
46.75 53.25 9446.75
Sell 9500 181.90
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 9200 224.20
36.35 63.65 9163.65
Sell 9100 187.85
Buy 9200 224.20
69.80 130.20 9130.20
Sell 9000 154.40
Buy 9100 187.85
33.45 66.55 9066.55
Sell 9000 154.40
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
8700 8800 8900 9000 9100 9200 9300 9400 9500 9600 9700 9800 9900 10000
Call Put
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Technical & Derivatives Report
April 20, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
257
263
269
275
282
ASIANPAINT 1,699 1,728
1,756
1,784
1,812
AXISBANK
412
446
466
499
519
BAJAJ-AUTO 2,306 2,342
2,384
2,420
2,462
BAJFINANCE 2,166 2,237
2,306
2,378
2,447
BAJAJFINSV 4,716 4,858
4,997
5,139
5,278
BPCL
348
354
360
366
372
BHARTIARTL
490
496
504
511
519
INFRATEL
161
165
170
174
179
BRITANNIA 2,750 2,791
2,843
2,884
2,936
CIPLA
583
590
603
610
623
COALINDIA
146
147
150
151
154
DRREDDY 3,743 3,836
3,917
4,010
4,091
EICHERMOT 13,097
13,934
14,456
15,293
15,815
GAIL
86
88
90
92
94
GRASIM
518
532
547
561
577
HCLTECH
440
448
461
469
483
HDFCBANK
873
892
906
924
939
HDFC 1,605 1,643
1,690
1,728
1,776
HEROMOTOCO
1,778
1,807
1,841
1,870
1,904
HINDALCO
116
120
123
127
130
HINDUNILVR 2,268 2,326
2,413
2,471
2,557
ICICIBANK
334
355
370
391
406
IOC
84
85
86
87
88
INDUSINDBK
429
452
465
488
502
INFY
614
621
634
641
654
ITC
184
186
189
191
193
JSW STEEL
166
172
176
181
185
KOTAKBANK 1,110 1,148
1,173
1,211
1,236
LT
906
919
930
943
954
M&M
348
356
363
371
378
MARUTI 5,049 5,277
5,440
5,668
5,831
NESTLEIND 16,493
16,908
17,639
18,055
18,786
NTPC
91
93
97
99
103
ONGC
74
75
76
78
79
POWERGRID
159
164
168
173
177
RELIANCE 1,178 1,201
1,216
1,238
1,253
SHREECEM 18,208
18,578
19,155
19,524
20,101
SBIN
181
187
193
199
204
SUNPHARMA
432
445
461
473
489
TCS 1,705 1,755
1,804
1,854
1,903
TATAMOTORS
73
75
77
79
80
TATASTEEL
279
286
293
300
307
TECHM
482
496
514
528
546
TITAN
922
949
983
1,010
1,045
ULTRACEMCO 3,416 3,475
3,570
3,629
3,723
UPL
346
355
367
375
388
VEDANTA
81
82
85
86
89
WIPRO
181
184
189
192
197
ZEEL
134
137
140
143
146
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Technical & Derivatives Report
April 20, 2020
*
Research Team Tel: 022 - 39357800 Website: www.angelbroking.com
For Technical Queries E-mail: tech[email protected]king.com
For Derivatives Queries E-mail: derivatives.d[email protected]
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