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December 21, 2020
Technical & Derivatives Report
Nifty
Bank Out
-
(
30715
)
On Friday, Bank Nifty started on a flat note and from the word go
witnessed selling pressure to mark an intraday low of 30374.
Subsequently, in the penultimate hour bounce back was seen that
erase a major part of morning loss to eventually end with a loss of
0.43% at 30715.
On the daily chart, the bank index is trading in a rising wedge
pattern, and on Friday, the prices sneaked below the support levels
of this pattern however bounce back from the lower levels in the
second half evaded the bearish breakdown. Clearly, the bank index
is struggling around the 31000 levels for the last few sessions and
only on a sustained close above the same can open the next leg
of upside. On the flip side, Friday's low will be closely watched at
30374 as a break below the same can result in a price correction
towards 30100-30000 levels. Keep a close watch on the above
levels and trade accordingly.
Key Levels
Support 1 – 30374 Resistance 1 – 30980
Support 2 – 30000 Resistance 2 – 31150
Exhibit 1: Nifty Daily Chart
Sensex (46961) / Nifty (13761)
On Friday, Nifty started the session marginally positive around
13760 but it corrected in the first hour of the trade by more than 100
points from the opening level. However, it found support near the
13650 mark and recovered gradually to end the day near the
opening level.
Just like the recent past, once again we witnessed upmove in the
indices from intraday dip and Nifty managed to end the week at its
all time high. However, the banking index has been reluctant to
participate during this week and thus has shown some relative
underperformance. Although there are no signs of reversal yet on
the chart, Nifty is currently trading near an important resistance of
13770 which is the 127% retracement of the previous correction on
the weekly charts. Since the momentum readings are in overbought
zone and the index is trading near its resistance, there could be some
time-wise or a price-wise correction in the near term. As far as levels
are concerned, 13650 and 13600 are the important supports
whereas 13770-13800 is the important resistance zone. Traders are
advised to look to book some profits on their existing longs here and
trade with a stock specific approach with a tab on the above
mentioned levels.
Key Levels
Support 1 – 13650 Resistance 1 – 13770
Support 2 – 13600 Resistance2 – 13800
Exhibit 2: Nifty Bank Daily Chart
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Technical & Derivatives Report
December 21
, 2020
Nifty Vs OI
12400
12600
12800
13000
13200
13400
13600
13800
14000
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
11/24 11/26 12/1 12/3 12/7 12/9 12/11 12/15 12/17
(`000)
Openinterest Nifty
View
Last week, we witnessed some consolidation for the
initial two sessions. However, smart buying was seen
thereafter to rally beyond 13750 mark.
FIIs were net buyers in the cash segment to the tune of
Rs. 2721 crore. In index future segment, they sold worth
Rs. 197 cr with rise in open interest indicating they
added fresh short positions on Friday’s session.
In F&O segment, the upmove seen in Nifty was
supported by long positions. In case of banking
index, no major build-up was seen in the week gone
by. In options front, we witnessed strong writing in
Nifty puts which resulted in PCR-OI surging to 1.77
during the week. At present, this ratio is on the
higher side and thus, hints market is overbought
now. FIIs continued exiting from long and
simultaneously preferred adding shorts in index
futures; their ‘Long Short Ratio’ has plunged to 68%
from 80% seen during start of December series.
Considering the above data point, we expect some
profit booking soon and hence, would advise
trader’s to keep booking profits.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 1.19%
Bank Nifty futures open interest has decreased by 3.99%
as market closed at 13760.55 levels.
The Nifty December future closed with a premium 13.50
point against a premium of 13.70 point in last trading
session. The January series closed at a premium of 53.40
point.
The INDIA VIX increased from 19.16 to 19.68.
At the same time, the PCR-OI of Nifty decreased from
1.77 to 1.62.
Few of the liquid counters where we have seen high cost
of carry are CANBK, GMRINFRA, ONGC, MFSL and BHEL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CUMMINSIND 2176800 14.09 612.05 3.86
SAIL 110865000 9.97 57.80 0.17
AMARAJABAT 1921000 9.71 955.70 0.84
TATASTEEL 40409000 7.82 631.25 -0.49
IOC 59271500 7.48 93.95 -1.36
PETRONET 13854000 7.37 257.70 -0.81
MFSL 8676200 7.37 648.20 -1.39
APOLLOTYRE 10630000 7.10 191.50 -2.66
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
DRREDDY 3040750 -16.72 5228.75 2.75
CHOLAFIN 4732500 -10.28 375.10 -0.20
JUBLFOOD 1699750 -9.27 2758.25 -1.46
AMBUJACEM 18333000 -7.84 251.05 1.43
GAIL 26156800 -6.78 125.05 0.64
SRF 389125 -6.38 5559.20 0.17
M&MFIN 13400456 -5.80 176.45 -0.45
VOLTAS 2569000 -5.31 828.80 0.44
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.62 0.97
BANKNIFTY 0.97 1.02
RELIANCE 0.51 0.38
ICICIBANK 0.60 0.44
INFY 0.58 0.30
Historical Volatility
SCRIP HV
PIDILITIND 38.67
CUMMINSIND 41.35
DRREDDY 36.94
PAGEIND 46.51
INFY 42.60
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Technical & Derivatives Report
December 21
, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (December Series) are given as an information and not as a recommendation.
Nifty Spot =
13760.55
FII Statistics for December 18, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
3869.40 4065.91 (196.51) 154257 15320.23 1.02
INDEX
OPTIONS
183712.63 181318.58 2394.05
867160 85226.66 13.21
STOCK
FUTURES
14259.54 14651.09 (391.55) 1302182 104859.74 0.29
STOCK
OPTIONS
6905.56 6953.97 (48.41) 102839 8289.47 0.32
Total 208747.13
206989.55
1757.58
2426438
213696.10
4.61
Turnover on December 18, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
3,43,729 29781.41 34.42
Index
Options
1,57,60,535
13,71,120.50
-70.78
Stock Futures
7,75,776 62808.22 11.94
Stock
Options
15,80,426
1,32,443.58
12.33
Total
1,84,60,466
15,96,153.71
-67.34
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 13800 132.80
44.75 55.25 13844.75
Sell 13900 88.05
Buy 13800 132.80
76.60 123.40 13876.60
Sell 14000 56.20
Buy 13900 88.05
31.85 68.15 13931.85
Sell 14000 56.20
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 13800 157.00
42.15 57.85 13757.85
Sell 13700 114.85
Buy 13800 157.00
74.80 125.20 13725.20
Sell 13600 82.20
Buy 13700 114.85
32.65 67.35 13667.35
Sell 13600 82.20
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
4000,000
4500,000
13000 13100 13200 13300 13400 13500 13600 13700 13800 13900 14000 14100 14200 14300
Call Put
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Technical & Derivatives Report
December 21
, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
450
457
465
471
479
ASIANPAINT 2,544 2,573
2,604
2,633
2,665
AXISBANK
591
600
606
615
620
BAJAJ-AUTO 3,235 3,291
3,327
3,383
3,419
BAJFINANCE 5,114 5,183
5,234
5,303
5,354
BAJAJFINSV 9,029 9,122
9,219
9,312
9,409
BPCL
384
389
394
399
404
BHARTIARTL
500
506
510
515
520
BRITANNIA 3,654 3,687
3,723
3,757
3,793
CIPLA
776
785
790
799
805
COALINDIA
137
140
142
144
146
DIVISLAB 3,748 3,790
3,825
3,867
3,902
DRREDDY 5,005 5,117
5,190
5,302
5,375
EICHERMOT 2,401 2,441
2,465
2,506
2,530
GAIL
120
122
124
127
128
GRASIM
895
902
909
917
924
HCLTECH
876
883
894
902
912
HDFCBANK 1,386 1,399
1,419
1,432
1,453
HDFCLIFE
634
644
650
660
666
HDFC 2,408 2,444
2,466
2,502
2,524
HEROMOTOCO 3,084 3,110
3,127
3,153
3,170
HINDALCO
243
246
249
252
255
HINDUNILVR 2,298 2,316
2,330
2,348
2,362
ICICIBANK
506
511
515
521
524
IOC
92
93
94
95
97
INDUSINDBK
860
883
910
933
960
INFY 1,167 1,179
1,187
1,198
1,206
ITC
207
211
213
217
220
JSW STEEL
352
358
364
370
375
KOTAKBANK 1,902 1,926
1,945
1,968
1,987
LT 1,253 1,267
1,284
1,298
1,315
M&M
716
725
731
740
747
MARUTI 7,424 7,492
7,610
7,677
7,795
NESTLEIND 17,932
18,148
18,373
18,589
18,814
NTPC
102
103
104
105
106
ONGC
96
97
100
101
104
POWERGRID
191
192
194
195
196
RELIANCE 1,947 1,969
1,987
2,009
2,027
SBILIFE
847
852
858
863
869
SHREECEM 24,106
24,340
24,536
24,770
24,966
SBIN
263
267
269
274
276
SUNPHARMA
564
570
573
579
582
TCS 2,817 2,839
2,868
2,891
2,920
TATAMOTORS
175
178
180
182
184
TATASTEEL
621
626
633
639
646
TECHM
918
926
936
944
955
TITAN 1,486 1,503
1,514
1,531
1,542
ULTRACEMCO 5,062 5,107
5,161
5,206
5,260
UPL
451
456
459
464
467
WIPRO
354
359
362
367
371
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Technical & Derivatives Report
December 21
, 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]roking.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]g.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com