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Technical & Derivatives Report
May 20, 2020
Nifty Bank Outlook - (17486)
Bank Nifty too witnessed a gap up opening yesterday. However,
there was no follow up buying seen in the later half and the index
gave up the gains to end with a loss of about half a percent.
Although the index saw selling in the later half yesterday, it is still
trading near the support zone of the harmonic pattern which is in
the range of 17600-17250. Traders are advised to avoid taking
any short positions as such patterns usually lead to pullback
moves. The pattern will negate if Bank Nifty breach 17140 mark.
Hence, traders are advised to focus on stock specific moves from
the banking space.
Key Levels
Support 1 – 17250 Resistance 1 – 18175
Support 2 – 17140 Resistance 2 – 18500
Exhibit 1: Nifty Daily Chart
Sensex (30196) / Nifty (8879)
We had a stellar rally in US and European markets on Monday as
most of the bourses soared as much as 3-4% during the day. This
resulted into a gap up opening in our markets after Monday’s
massive correction. However, once again we failed to sustain at
higher levels, which indicates sheer underperformance from our
markets. At the end of close, Nifty ended with marginal gains over
half a percent, whereas the weakest link BANKNIFTY concluded in
the red.
In our previous article, we had mentioned that we were not
convinced with Monday’s decline and hence, yesterday’s gap up
opening was very much on expected lines. However, thereafter,
we saw index struggling to stay at higher levels and eventually
pared down a major portion of gains, which is clearly
disappointing. It seems that the previous key support zone of
9000-9050 is now acting as a sturdy wall and precisely after
entering this area, our markets took a u-turn. Going forward, it
would be important to see whether Nifty manages to hold 8800-
8750 or not. On the flipside, 8950 – 9050 would be the levels to
watch out for. If we have to see any recovery in our markets, the
next couple of days would be quite crucial and hence, we need to
keep a close eye on above mentioned levels.
Clearly, there is some serious pain in our Financial space, which is
not letting Bank Nifty participate in any rally. Hence, as we had
alluded, if our market has to see any rebound, the banking space
needs to stabilise first and then give some sustained relief move.
Key Levels
Support 1 – 8800 Resistance 1 – 8950
Support 2 – 8750 Resistance 2 – 9050
Exhibit 2: Nifty Bank Daily Chart
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May 20, 2020
Nifty Vs OI
8200
8400
8600
8800
9000
9200
9400
9600
9800
10000
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
4/28 4/30 5/5 5/7 5/11 5/13 5/15 5/19
(`000)
Openinterest Nifty
V
iew
s
Nifty started with a gap up opening however it stuggled
at higher levels and witnessed selling pressure in the
second half to erase most of the morning gains. It
eventually ended with gains of 0.63% at 8879.10.
FIIs were net sellers in the cash market segment to the
tune of Rs. 1328 crores. In index futures, they bought
worth 2332 crores with a decrease in open interest,
indicating shorts covering and long formation in
yesterday’s session.
In yesterday’s session, the index gave up much of the
intraday gains in the later half. However, FII’s preferred
to cover their short positions in index futures as Nifty
pulled back higher from the support of 8800. In options
segment, 8900-8700 put options added some open
interest. Looking at the data, 8800 seems to be a good
support for the near term and hence, traders are
advised to use intraday declines as buying opportunity.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 1.46%
Bank Nifty futures open interest has decreased by 1.03%
as market closed at 8879.10 levels.
The Nifty May future closed with a premium of 5 points
against a premium of 2.6 point in last trading session. The
June series closed at a premium of 0.85 points.
The INDIA VIX has decreased from 40.9 to 39.45
At the same time, the PCR-OI of Nifty increased from 0.95
to 1.03.
Few of the liquid counters where we have seen high cost
of carry are, IDEA, ADANIPOWER, HDFCLIFE, BHEL and
YESBANK.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
IDEA 550270000 28.34 5.45 17.02
TORNTPOWER 2643000 18.41 303.95 2.58
INFRATEL 9380000 15.95 218.75 5.50
ADANIPOWER 68440000 15.94 35.30 15.02
ESCORTS 2511300 12.52 835.60 2.28
PVR 1929200 11.95 804.45 7.91
UPL 18290400 11.47 339.65 -10.06
L&TFH 33952400 11.06 52.05 -1.43
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
YESBANK 24085600 -12.30 27.40 -0.72
GLENMARK 3426200 -10.05 332.35 1.77
MINDTREE 752800 -9.08 918.90 3.88
TATASTEEL 20291500 -7.65 272.00 2.54
CUMMINSIND 1553400 -5.63 327.00 3.49
SAIL 49922600 -5.59 27.00 1.52
NIITTECH 420000 -4.92 1373.80 2.07
TVSMOTOR 4506300 -4.63 303.35 0.92
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.03 0.80
BANKNIFTY 0.59 0.83
RELIANCE 0.58 0.43
ICICIBANK 0.35 0.50
INFY 0.52 0.49
Historical Volatility
SCRIP HV
BHARTIARTL 78.28
ADANIPOWER 108.43
IDEA 151.00
ADANIPORTS 81.86
UPL 99.92
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Technical & Derivatives Report
May 20, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (May Series) are given as an information and not as a recommendation.
Nifty Spot =
8879.10
FII Statistics for May 19, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
9407.61
7075.92
2331.69
94311
5483.84
(8.60)
INDEX
OPTIONS
202743.58
202023.53
720.05
587173
35893.77
4.36
STOCK
FUTURES
16076.14
14284.06
1792.08
1565718
73710.33
0.63
STOCK
OPTIONS
3878.24
3831.44
46.80
70079
3523.63
5.09
Total 232105.57
227214.95
4890.62
2317281
118611.57
1.26
Turnover on May 19, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 7,96,321 38317.36 4.00
Index Options 1,95,92,835
9,39,524.33 23.71
Stock Futures 10,20,346 50347.81 -2.93
Stock Options 10,11,852 57017.55 2.43
Total 2,24,21,354
10,85,207.05 20.06
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 8900 189.95
47.50 52.50 8947.50
Sell 9000 142.45
Buy 8900 189.95
86.60 113.40 8986.60
Sell 9100 103.35
Buy 9000 142.45
39.10 60.90 9039.10
Sell 9100 103.35
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 8900 204.80
44.70 55.30 8855.30
Sell 8800 160.10
Buy 8900 204.80
82.05 117.95 8817.95
Sell 8700 122.75
Buy 8800 160.10
37.35 62.65 8762.65
Sell 8700 122.75
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
8200 8300 8400 8500 8600 8700 8800 8900 9000 9100 9200 9300 9400 9500
Call Put
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Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
289
304
312
328
336
ASIANPAINT 1,467 1,486
1,501
1,520
1,535
AXISBANK
337
346
359
368
381
BAJAJ-AUTO 2,449 2,479
2,517
2,547
2,585
BAJFINANCE 1,882 1,924
1,964
2,005
2,045
BAJAJFINSV 4,359 4,447
4,521
4,609
4,683
BPCL
284
289
297
301
309
BHARTIARTL
540
569
586
616
633
INFRATEL
200
210
215
224
230
BRITANNIA 3,051 3,077
3,113
3,139
3,175
CIPLA
579
587
598
606
617
COALINDIA
121
122
123
125
126
DRREDDY 3,632 3,666
3,694
3,728
3,756
EICHERMOT 12,591
12,779
13,063
13,250
13,534
GAIL
79
81
82
83
85
GRASIM
483
498
509
524
535
HCLTECH
501
509
515
524
529
HDFCBANK
800
815
841
857
883
HDFC 1,468 1,504 1,5
48
1,584
1,628
HEROMOTOCO
2,023
2,048
2,088
2,113
2,153
HINDALCO
114
116
118
120
122
HINDUNILVR 1,933 1,954
1,989
2,011
2,046
ICICIBANK
289
294
303
309
317
IOC
71
71
72
73
74
INDUSINDBK
346
357
372
383
398
INFY
646
657
666
677
686
ITC
163
167
169
173
176
JSW STEEL
162
166
169
173
176
KOTAKBANK 1,097 1,114
1,142
1,158
1,186
LT
765
781
807
823
849
M&M
362
372
382
392
402
MARUTI 4,676 4,741
4,820
4,885
4,965
NESTLEIND 15,918
16,034
16,225
16,341
16,532
NTPC
87
89
90
93
94
ONGC
72
75
77
79
81
POWERGRID
152
155
157
160
162
RELIANCE 1,366 1,388
1,425
1,446
1,483
SHREECEM 17,667
18,004
18,412
18,749
19,157
SBIN
149
151
154
156
160
SUNPHARMA
428
435
445
452
463
TCS 1,876 1,912
1,939
1
,976
2,003
TATAMOTORS
79
80
83
84
87
TATASTEEL
260
266
273
279
286
TECHM
495
504
512
520
528
TITAN
804
815
830
841
856
ULTRACEMCO 3,264 3,351
3,422
3,509
3,580
UPL
310
325
353
367
395
VEDANTA
87
88
91
93
95
WIPRO
175
180
183
1
88
191
ZEEL
144
147
151
155
159
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Technical & Derivatives Report
May 20, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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