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Technical & Derivatives Report
August 20, 2020
Nifty Bank Outlook - (22286)
Tuesday’s smart rally was followed by a positive start yesterday
across the board. Subsequently, we witnessed a muted movement
in key indices throughout the session by maintaining a good
positive posture. Eventually the banking index closed with nominal
gains ahead of the weekly expiry session.
The kind of tail end surge we witnessed in few banking
heavyweights on Tuesday, the follow up was clearly missing and
hence, the banking index vacillated in a slender range yesterday.
So as far as levels are concerned, 22500 remains to be a sturdy
wall and only a sustainable breakout from this would unfold the
next leg of the rally. Till then the wider range continues to be
22500-21400 and within this, 22000-21750 are considered an
intermediate supports.
Key Levels
Support 1 – 22000 Resistance 1 – 22500
Support 2 – 21750 Resistance 2 – 22650
Exhibit 1: Nifty Daily Chart
Sensex (38615) / Nifty (11408)
Post Tuesday’s breakout, Nifty started yesterday’s session with a gap
up around the 11450 mark. However, it then consolidated within the
range of 11460-11400 throughout the day and ended near the
lower end of the range.
After a positive opening, the index slipped into a consolidation
mode yesterday as there was no significant movement seen within
the large cap space. However, the overall market breadth was robust
as the midcap and the small cap stocks continued with the upmove
and provided good trading opportunities. In yesterday’s report, we
had mentioned that since the Nifty has surpassed its swing high of
11370, the probable near term target is seen around 11465 and
then at 11625. These levels are projected by taking reciprocal
retracement of the recent corrective move from 11341 to 10882.
Yesterday, the index almost tested the first target zone which was
the 127% retracement of the mentioned correction, but it did not
surpass the same. It was mainly because the large caps seemed to
have lost the momentum and it were the non-index stocks where
the momentum got shifted. Hence, the immediate resistance for the
index is intact around 11465 and only if the index crosses the same,
then Nifty would target the 161.8% retracement level which is seen
around 11625. On the flipside, 11350-11300 is the immediate
support for the index.
Key Levels
Support 1 – 11350 Resistance 1 – 11465
Support 2 – 11300 Resistance 2 – 11500
Exhibit 2: Nifty Bank Daily Chart
Stocks from the midcap and the small cap universe are on a roll and
have been providing good returns to intraday and short term
traders. We continue with our advise to capitalize on such
opportunities where the price movements are supported by
good volumes. However, such moves sometimes also create
euphoric situation which is then followed by a healthy correction.
Although there are no signs of reversal, traders should keep
booking timely profits and avoid getting into much leveraged
bets.
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Technical & Derivatives Report
August 20, 2020
Nifty Vs OI
10600
10700
10800
10900
11000
11100
11200
11300
11400
11500
10,200
10,400
10,600
10,800
11,000
11,200
11,400
11,600
11,800
12,000
12,200
8/3 8/4 8/5 8/6 8/7 8/108/118/128/138/148/178/188/19
(`000)
Openinterest Nifty
Vie
w
s
Nifty started the session on a positive note but it then
consolidated within a range and ended tad above
11400.
FIIs were net buyers in the cash market segment to the
tune of Rs. 459 crores. In index futures, they sold worth
250 crores with decrease in open interest indicating
long unwinding in yesterday’s session
.
FII's were net buyers in the cash segment while they
squared off some of their long positions in index
futures. In options segment,open interest addition was
seen in 11450-11550 calls while 11400 put option
added open interest. The data indices that we may see
another day of consolidation on the expiry day. Intraday
traders are advised to be vigilant on the at-the-money
options data and trade according to the changes in
open interest seen during the day.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 2.86%
Bank Nifty futures open interest has decreased by 4.03%
as market closed at 11408.40 levels.
The Nifty August future closed with a premium of 12.4
point against a premium of 13.2 point in last trading
session. The September series closed at a premium of 22
point.
The INDIA VIX has decreased from 20.43 to 19.95
At the same time, the PCR-OI of Nifty decreased from
1.65 to 1.60.
Few of the liquid counters where we have seen high cost
of carry are JINDALSTEL, IDEA, TATACHEM,
BANDHANBNK, AND EQUITAS.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CANBK 16740000 38.46 105.65 3.52
EQUITAS 16522400 28.34 54.35 3.21
CENTURYTEX 2949800 24.23 333.10 5.46
GODREJPROP 870350 15.83 889.70 -0.34
AMARAJABAT 1358000 15.28 737.00 -3.92
GLENMARK 6791900 14.95 480.75 1.54
LICHSGFIN 13878000 13.77 277.50 3.45
TATACHEM 4986000 13.58 311.05 5.23
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ZEEL 33390000 -35.33 196.80 12.92
BANKBARODA 53242600 -12.33 47.60 2.14
ADANIENT 21244000 -9.06 239.50 12.56
SRF 711750 -8.19 4294.95 -0.01
UPL 11363300 -7.84 499.40 0.98
CONCOR 5812797 -7.37 393.35 -0.06
SUNTV 6196500 -7.34 437.85 0.70
IBULHSGFIN 16510600 -6.90 204.80 -1.87
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.60 1.14
BANKNIFTY 1.05 0.86
RELIANCE 0.60 0.44
ICICIBANK 0.51 0.58
INFY 0.59 0.52
Historical Volatility
SCRIP HV
ADANIENT 63.16
ZEEL 87.98
NATIONALUM 54.52
TATACHEM 43.84
PVR 63.03
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Technical & Derivatives Report
August 20, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (August Series) are given as an information and not as a recommendation.
Nifty Spot =
11408.40
FII Statistics for August 19, 2020
Detail Buy
Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
2824.50
3074.50
(250.00) 121067
9539.74
(1.97)
INDEX
OPTIONS
196243.50
196469.23
(225.73) 676907
54740.22
2.01
STOCK
FUTURES
13693.68
14362.88
(669.20) 1286332
90748.52
0.18
STOCK
OPTIONS
6467.84
6556.46
(88.62) 99049
7086.57
1.20
Total 219229.52
220463.07
(1233.55) 2183355
162115.05
0.67
Turnover on August 19, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 3,11,782 20766.26 -24.10
Index Options 2,07,97,600
14,18,159.02
7.97
Stock Futures 7,98,229 57000.43 2.05
Stock Options 12,47,345 93996.11 -0.14
Total 2,31,54,956
15,89,921.82
6.65
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11400 129.20
53.20 46.80 11453.20
Sell 11500 76.00
Buy 11400 129.20
90.20 109.80 11490.20
Sell 11600 39.00
Buy 11500 76.00
37.00 63.00 11537.00
Sell 11600 39.00
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11400 107.95
33.30 66.70 11366.70
Sell 11300 74.65
Buy 11400 107.95
56.45 143.55 11343.55
Sell 11200 51.50
Buy 11300 74.65
23.15 76.85 11276.85
Sell 11200 51.50
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
4000,000
10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000
Call Put
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Technical & Derivatives Report
August 20, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
349
353
359
363
370
ASIANPAINT 1,857 1,871
1,887
1,901
1,917
AXISBANK
437
440
446
450
456
BAJAJ-AUTO 2,979 3,019
3,089
3,130
3,199
BAJFINANCE 3,361 3,386
3,425
3,450
3,489
BAJAJFINSV 6,194 6,246
6,336
6,388
6,478
BPCL
391
397
404
411
417
BHARTIARTL
521
529
534
541
547
INFRATEL
199
200
202
203
205
BRITANNIA 3,813 3,844
3,897
3,928
3,980
CIPLA
747
752
763
768
779
COALINDIA
132
134
136
137
139
DRREDDY 4,425 4,457
4,508
4,540
4,591
EICHERMOT 20,786
21,024
21,402
21,640
22,018
GAIL
95
98
100
103
105
GRASIM
654
660
666
671
677
HCLTECH
700
705
710
714
719
HDFCBANK 1,051 1,059
1,064
1,072
1,078
HDFC
594
599
603
608
612
HEROMOTOCO
1,809
1,819
1,827
1,837
1,845
HINDALCO 2,874 2,903
2,951
2,981
3,028
HINDUNILVR
193
195
196
198
200
ICICIBANK 2,170 2,182
2,202
2,213
2,233
IOC
368
371
374
377
379
INDUSINDBK
86
87
88
89
90
INFY
513
518
524
528
535
ITC
949
954
963
968
977
JSW STEEL
196
197
199
201
203
KOTAKBANK
272
275
278
281
283
LT 1,331 1,343
1,362
1,374
1,393
M&M
994
1,001
1,013
1,021
1,033
MARUTI
616
620
626
630
636
NESTLEIND 6,834 6,912
6,963
7,042
7,093
NTPC 16,167
16,256
16,405
16,494
16,643
ONGC
93
94
95
96
97
POWERGRID
78
79
80
81
83
RELIANCE
176
176
178
179
180
SHREECEM 2,103 2,117
2,136
2,150
2,168
SBIN 21,712
21,896
22,035
22,220
22,358
SUNPHARMA
193
195
198
200
202
TCS
519
522
528
531
536
TATAMOTORS 2,232 2,245
2,265
2,277
2,297
TATASTEEL
123
124
126
127
129
TECHM
425
429
432
435
439
TITAN
702
714
722
734
742
ULTRACEMCO 1,137 1,143
1,151
1,157
1,165
UPL 4,152 4,176
4,196
4,220
4,240
VEDANTA
485
492
500
507
514
WIPRO
275
277
282
284
288
ZEEL
158
177
189
208
219
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Technical & Derivatives Report
August 20, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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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]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com