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Technical & Derivatives Report
May 22, 2020
Nifty Bank Outlook - (17735)
Banking space witnessed a pullback in yesterday's session during
the day; however, it gave up the gains in the last hour and ended
with a loss of 0.59 percent.
In last couple of sessions, Bank Nifty has attempted a pullback
from the support of the harmonic pattern about which we had
mentioned in our earlier report. However, the index being an
underperformer in the recent past, is clearly struggling to show
follow up buying and is not able to show sustainable move as it
should have been. Technically, the immediate support for index is
placed at 17400 followed by 17100. Traders are advised to have
a stock specific approach within the sector at the moment as price
movement in the coming week could give better clarity on the
direction for the near term.
Key Levels
Support 1 – 17400 Resistance 1 – 18450
Support 2 – 17100 Resistance 2 – 19100
Exhibit 1: Nifty Daily Chart
Sensex (30933) / Nifty (9106)
Wednesday's smart recovery was followed by a flat to positive
opening in our market despite sluggish global cues. During the
first half, the market extended wednesday's relief move and went
beyond the 9150 mark. However, some indecisiveness was being
witnessed at higher levels and in the process, the Nifty eventually
corrected to pare down major chunk of gains. In all this, Nifty
eventually managed to reclaim the 9100 mark on a weekly expiry
day.
Yesterday's first half had some action but there was some volatility
seen towards the fag end, which was evident on weekly expiry day.
Technically speaking, we are standing at a crucial juncture now
and hence, the coming session would probably set the next path
of action for our markets. As far as levels are concerned, 9150-
9200 remains to be an important hurdle for Nifty. Today being the
weekly close, it would be crucial to see whether we manage to
surpass this hurdle or not. Any sustainable move beyond this
would certainly trigger a strong upside move in the market;
whereas on the flipside, 9000 becomes a make or break level now.
Yesterday, despite we were witnessing some volatile swings in
indices, individual pockets were doing well for themselves. Hence,
till the time, we are stuck in a range of 9000-9200, its advisable
to focus on potential movers.
Key Levels
Support 1 – 9056 Resistance 1 – 9150
Support 2 – 9000 Resistance 2 – 9200
Exhibit 2: Nifty Bank Daily Chart
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May 22, 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 5/21
(`000)
Openinterest Nifty
V
iew
s
Yesterday, Nifty started on a positive note however it
was followed by choppy moves on the weekly options
expiry day. Nifty eventually ended with gains of 0.44%
tad above 9100.
FIIs were net sellers in the cash market segment to the
tune of Rs. 259 crores. In index futures, they sold worth
471 crores with a rise in open interest, indicating short
formation in yesterday’s session.
FII sold equities in the cash segment and formed some
short positions in the index futures segment yesterday.
As per the options data, the immediate support for Nifty
is placed around 9000 as there is good amount of put
writing seen at the 9000 strike for the coming monthly
expiry. On the flipside, the open interest addition is seen
in 9300-9500 call options. Since we have an extended
weekend ahead of us, we could see some range bound
movement with stock specific action in the market.
Hence, traders are advised to trade with a stock specific
approach for today.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 0.91%
Bank Nifty futures open interest has increased by 10.55%
as market closed at 9106.25 levels.
The Nifty May future closed with a discount of 31.15 point
against a premium of 0.1 point in last trading session. The
June series closed at a discount of 30.65 points.
The INDIA VIX has decreased from 35.81 to 32.98
At the same time, the PCR-OI of Nifty increased from 1.18
to 1.24.
Few of the liquid counters where we have seen high cost
of carry are IDEA,YESBANK, NATIONALUM, HINDUNILVR,
and MINDTREE.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
ITC 55004800 30.14 188.95 7.88
BALKRISIND 954400 20.63 976.50 0.83
COLPAL 1743000 16.63 1335.10 -1.80
AMARAJABAT 1462400 14.77 596.40 4.58
KOTAKBANK 11822000 13.60 1150.25 -1.64
IDFCFIRSTB 167063000 10.31 18.85 -2.36
BANDHANBNK 12647400 9.40 210.85 -6.07
PEL 4901605 9.34 933.20 0.74
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
IDEA 427672000 -11.96 5.55 0.00
INFRATEL 8392000 -9.47 205.85 1.19
GODREJPROP 278200 -7.76 601.10 0.43
ADANIPOWER 61490000 -6.54 34.25 -2.16
JUBLFOOD 2543000 -6.46 1570.00 3.31
HEROMOTOCO 2398700 -6.33 2119.50 4.01
ASIANPAINT 5497200 -6.15 1574.30 4.81
YESBANK 22228800 -5.36 26.90 -1.10
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.24 1.02
BANKNIFTY 0.62 0.76
RELIANCE 0.62 0.53
ICICIBANK 0.37 0.47
INFY 0.57 0.63
Historical Volatility
SCRIP HV
ITC 66.25
UBL 57.27
MCDOWELL-N 67.76
ASIANPAINT 56.00
BERGEPAINT 55.02
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Technical & Derivatives Report
May 22, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (May Series) are given as an information and not as a recommendation.
Nifty Spot =
9106.25
FII Statistics for May 21, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
4671.27
5142.38
(471.11) 110298
6488.67
12.91
INDEX
OPTIONS
313579.21
311779.73
1799.48
502661
32285.63
(12.60)
STOCK
FUTURES
15204.21
14713.93
490.28
1614779
77799.61
1.68
STOCK
OPTIONS
3661.54
3693.96
(32.42) 63765
3217.16
(2.98)
Total 337116.23
335330.00
1786.23
2291503
119791.07
(1.51)
Turnover on May 21, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 5,78,588 27894.65 -15.32
Index Options 4,96,60,739
22,10,353.07 105.42
Stock Futures 10,66,389 52194.91 1.07
Stock Options 9,91,770 53154.56 -11.73
Total 5,22,97,486
23,43,597.19 91.97
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 9100 117.80
44.40 55.60 9144.40
Sell 9200 73.40
Buy 9100 117.80
74.45 125.55 9174.45
Sell 9300 43.35
Buy 9200 73.40
30.05 69.95 9230.05
Sell 9300 43.35
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 9100 102.55
32.55 67.45 9067.45
Sell 9000 70.00
Buy 9100 102.55
56.00 144.00 9044.00
Sell 8900 46.55
Buy 9000 70.00
23.45 76.55 8976.55
Sell 8900 46.55
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
8500 8600 8700 8800 8900 9000 9100 9200 9300 9400 9500 9600 9700 9800
Call Put
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Technical & Derivatives Report
May 22, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
311
314
318
321
325
ASIANPAINT 1,470 1,522
1,553
1,605
1,635
AXISBANK
347
352
361
366
374
BAJAJ-AUTO 2,559 2,600
2,662
2,703
2,765
BAJFINANCE 1,911 1,951
2,014
2,054
2,117
BAJAJFINSV 4,371 4,455
4,599
4,683
4,827
BPCL
296
305
310
319
325
BHARTIARTL
576
585
595
604
614
INFRATEL
201
203
207
209
212
BRITANNIA 3,064 3,088
3,122
3,146
3,180
CIPLA
604
610
619
625
633
COALINDIA
121
123
125
126
128
DRREDDY 3,747 3,797
3,876
3,926
4,004
EICHERMOT 13,038
13,563
13,881
14,406
14,724
GAIL
85
86
87
89
90
GRASIM
513
520
528
535
544
HCLTECH
518
526
532
540
546
HDFCBANK
834
847
865
878
897
HDFC 1,
551
1,574
1,613
1,636
1,675
HEROMOTOCO
1,980
2,050
2,090
2,160
2,200
HINDALCO
117
123
127
133
137
HINDUNILVR 1,928 1,950
1,977
1,998
2,025
ICICIBANK
296
300
306
311
317
IOC
72
73
74
75
76
INDUSINDBK
331
339
351
359
372
INFY
658
665
672
679
686
ITC
166
178
184
195
202
JSW STEEL
165
168
171
174
177
KOTAKBANK 1,117 1,133
1,161
1,178
1,206
LT
801
811
828
838
855
M&M
392
400
406
414
421
MARUTI 4,769 4,910
4,992
5,132
5,214
NESTLEIND 16,115
16,205
16,355
16,445
16,595
NTPC
88
89
91
92
94
ONGC
75
76
77
79
80
POWERGRID
156
157
159
160
161
RELIANCE 1,406 1,424
1,443
1,460
1,479
SHREECEM 18,517
18,884
19,117
19,484
19,717
SBIN
149
150
153
155
158
SUNPHARMA
447
457
463
473
479
TCS 1,920 1,956
1,977
2,012
2,034
TATAMOTORS
82
83
84
85
86
TATASTEEL
275
279
283
287
291
TECHM
506
513
517
524
529
TITAN
835
843
851
859
867
ULTRACEMCO 3,459 3,515
3,553
3,609
3,646
UPL
351
359
364
372
378
VEDANTA
86
88
90
92
94
WIPRO
180
184
188
193
196
ZEEL
149
151
155
158
162
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Technical & Derivatives Report
May 22, 2020
*
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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 ru[email protected]oking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com