Technical & Derivatives Report
January 23, 2017
Sensex (27035) / Nifty (8349)
Exhibit 1: Nifty Daily Chart
On Friday, a gap down opening was followed by a strong selling
pressure in the second half, which led to a breakdown on
intraday charts below the support zone of 8397-8370 level. In
the process, the Nifty closed well below the ‘5-Day EMA’ (placed
at 8388) for the first time since December 26, 2016.
Technically speaking, the weekly chart structure looks extremely
strong as the index managed to traverse the
’20 EMA’
convincingly during the previous week. This is supported by the
‘RSI-Smoothened’ and ‘Parabolic SAR’, which are positively
poised. Now, if we go back to smaller degree time frame (daily),
we can see cluster of supports around 8300-8275 as daily
’89 EMA, ‘200 SMA’, and previous swing high of 8274.95
converging in the vicinity of mentioned levels. Thus, going by this
hypothesis, any minor dip in the forthcoming week is likely to
generate buying opportunities. On the upside, considering the
‘January’ series derivatives expiry week, it would be a daunting
task for the Nifty to pass 8400-8460 level; but it’s a matter of
time as we expect a breakout to happen soon. With a near term
perspective, we foresee levels of 8510-8600 for the Nifty. Hence,
traders are advised to use any dip to create fresh longs with a
directional view and refrain from shorting in the market.
Key Levels
Support 1 - 8300
Resistance 1 - 8400
Support 2 - 8275
Resistance 2 - 8460
Nifty Bank Outlook - (18821)
Exhibit 2: Nifty Bank Daily Chart
The Nifty Bank index opened with downside gap on Friday and
traded in sideways direction in first half of the session. However,
we witnessed sharp sell-off in the later half and as a result, the
banking index ended the session with loss of 1.59 percent over its
previous close.
From last few sessions, we have been mentioning about the
crucial resistance at 19275, which is the 61.80% retracement
level of the previous down move from 20306 to 17608. But,
Friday’s sharp fall was quite unexpected for us as we were
expecting a more of a time correction rather than a price
correction. At current juncture, strong support for the index is
placed at 18630 - 18660 levels, which is a confluence zone of
38.20% retracement level, ‘89 EMA’ and ‘20 EMA’ on daily chart.
Thus, we advise trader not to get carried away by the down move
and use declines to form long positions. Going forward,
immediate resistance for the Nifty Bank index is placed at 19070
- 19185 levels.
Key Levels
Support 1 - 18630
Resistance 1 - 19070
Support 2 - 18515
Resistance 2 - 19185
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Technical & Derivatives Report
January 23, 2017
Comments
Nifty Vs OI
The Nifty futures open interest has decreased by 5.11%
BankNifty futures open interest has decreased by 6.84%
as market closed at 8349.35 levels.
The Nifty January future closed with a premium of 13.20
points against the premium of 7.85 points in last trading
session. The February series closed at a premium of
37.95 points.
The Implied Volatility of at the money options has
increased from 12.31% to 13.14%. At the same time, the
PCR-OI of Nifty has decreased from 1.25 to 1.19 levels.
The total OI of the market is Rs. 2,90,905/- cr. and the
stock futures OI is Rs. 81,877/- cr.
Few of the liquid counters where we have seen high cost
of carry are JPASSOCIAT, RCOM, SOUTHBANK, NHPC
and IDFC.
Views
On Friday, FIIs activity in cash market segment was
OI Gainers
subdued. While in index futures, they were net buyers to
OI
PRICE
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
the tune of Rs. 437 crores with fall in open interest,
CANBK
20655000
15.42
269.95
-5.69
indicating covering of shorts formed earlier.
PFC
23334000
15.33
130.85
-1.69
In Index Options segment, FIIs bought worth Rs. 758
GMRINFRA
207180000
14.39
12.70
0.00
crores with rise in open interest. In call options, 8400
AXISBANK
30292800
11.86
450.65
-6.77
strike added good amount of open interest. On the other
CESC
3507900
11.04
689.05
0.27
hand, in put options, 8000 strike added some positions;
HAVELLS
5966000
10.56
398.85
3.02
followed by good amount of unwinding in 8400 and
LUPIN
5262800
10.38
1464.30
-1.17
8100 put options. Highest open interest in current series
HDFC
12825500
9.76
1239.15
-0.32
has shifted from 8500 to 8400 call options and of puts
remains intact at 8000 strike price.
Last week, Nifty traded in a narrow range and closed
OI Losers
with minor losses. We witnessed mixed activity in Index
OI
PRICE
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
Futures from FIIs desk, wherein, majority of positions
TORNTPOWER
3618000
-12.29
193.10
-3.16
formed were on short side. But, at the same time, longs
SAIL
52860000
-11.85
58.25
-2.27
formed during start of January series are still intact.
HDIL
25416000
-9.72
60.55
-4.42
While, shorts formed in 8200-8300 puts are also in the
JISLJALEQS
41715000
-9.21
88.90
-6.72
system. Thus, 8300-8350 is an immediate support zone
NIITTECH
654000
-8.40
443.00
0.75
for Nifty. Unless we don’t see any meaningful change in
AMBUJACEM
13717500
-7.60
217.50
-1.56
data, traders are suggested to trade with a positive bias
and any dips in index should be used to add longs.
TITAN
9370500
-6.69
361.40
-2.93
MRF
34830
-6.52
51740.25
-0.87
Historical Volatility
Put-Call Ratio
SCRIP
HV
SCRIP
PCR-OI
PCR-VOL
ADANIPOWER
74.26
NIFTY
1.19
1.12
AXISBANK
44.05
BANKNIFTY
0.75
0.89
JISLJALEQS
48.25
INFY
0.45
0.55
SINTEX
53.75
RELIANCE
0.33
0.38
CANBK
41.04
AXISBANK
0.61
0.67
www.angelbroking.com
Technical & Derivatives Report
January 23, 2017
FII Statistics for January 20, 2017
Turnover on January 20, 2017
Open Interest
No. of
Turnover
Change
Detail
Buy
Sell
Net
Instrument
Value
Change
Contracts
( in Cr. )
(%)
Contracts
(in Cr.)
(%)
INDEX
INDEX
3202.61
2765.76
436.85
277352
18019.65
(3.54)
284216
19269.85
75.16
FUTURES
FUTURES
INDEX
INDEX
41037.19
40278.98
758.21
1199586
77166.60
2.36
4516883
305663.66
-33.11
OPTIONS
OPTIONS
STOCK
13813.15
14469.00
(655.85)
949385
59964.24
2.43
STOCK
FUTURES
842039
55990.51
27.92
FUTURES
STOCK
STOCK
5813.64
6071.39
(257.76)
115983
7617.31
3.06
508967
35551.57
21.62
OPTIONS
OPTIONS
TOTAL
63866.59
63585.13
281.45
2542306
162767.80
1.74
TOTAL
6152105
416475.59
-23.01
Nifty Spot = 8349.35
Lot Size = 75
Bull-Call Spreads
Bear-Put Spreads
Action
Strike
Price
Risk
Reward
BEP
Action
Strike
Price
Risk
Reward
BEP
Buy
8300
85.60
Buy
8400
65.85
56.25
43.75
8356.25
39.70
60.30
8360.30
Sell
8400
29.35
Sell
8300
26.15
Buy
8300
85.60
Buy
8400
65.85
78.90
121.10
8378.90
56.40
143.60
8343.60
Sell
8500
6.70
Sell
8200
9.45
Buy
8400
29.35
Buy
8300
26.15
22.65
77.35
8422.65
16.70
83.30
8283.30
Sell
8500
6.70
Sell
8200
9.45
Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.
Nifty Put-Call Analysis
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Technical & Derivatives Report
January 23, 2017
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ACC
1,285
1,306
1,335
1,356
1,385
ADANIPORTS
275
280
288
293
301
AMBUJACEM
213
216
218
220
223
ASIANPAINT
943
955
966
979
990
AUROPHARMA
680
689
704
713
728
AXISBANK
440
445
453
459
467
BAJAJ-AUTO
2,663
2,682
2,701
2,720
2,739
BANKBARODA
149
152
156
159
163
BHEL
126
127
130
132
135
BPCL
654
659
668
673
682
BHARTIARTL
307
314
321
327
334
INFRATEL
346
350
354
357
361
BOSCH
20,683
20,992
21,300
21,609
21,917
CIPLA
563
571
582
589
600
COALINDIA
299
301
305
307
311
DRREDDY
2,903
2,925
2,942
2,965
2,982
EICHERMOT
22,350
22,570
22,820
23,039
23,290
GAIL
448
454
463
469
477
GRASIM
843
853
869
879
895
HCLTECH
828
833
839
845
850
HDFCBANK
1,222
1,229
1,237
1,244
1,252
HDFC
1,223
1,230
1,238
1,245
1,252
HEROMOTOCO
2,996
3,023
3,072
3,099
3,148
HINDALCO
164
168
173
177
182
HINDUNILVR
845
853
862
870
880
ICICIBANK
259
261
265
267
270
IDEA
68
70
71
73
74
INDUSINDBK
1,192
1,206
1,223
1,238
1,255
INFY
942
945
949
953
956
ITC
253
254
255
257
258
KOTAKBANK
710
716
725
731
740
LT
1,384
1,399
1,427
1,442
1,469
LUPIN
1,436
1,451
1,470
1,484
1,503
M&M
1,169
1,181
1,199
1,210
1,228
MARUTI
5,580
5,624
5,687
5,731
5,794
NTPC
167
169
171
173
176
ONGC
192
195
198
201
205
POWERGRID
195
197
200
202
205
RELIANCE
1,016
1,021
1,029
1,034
1,043
SBIN
244
247
254
258
264
SUNPHARMA
636
639
643
646
650
TCS
2,242
2,260
2,277
2,295
2,312
TATAMTRDVR
320
324
330
334
340
TATAMOTORS
517
520
525
528
533
TATAPOWER
76
77
78
79
80
TATASTEEL
443
449
458
464
474
TECHM
455
462
473
480
491
ULTRACEMCO
3,372
3,422
3,472
3,522
3,572
WIPRO
473
475
478
480
482
YESBANK
1,337
1,348
1,363
1,374
1,390
ZEEL
457
462
470
475
484
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Technical & Derivatives Report
January 23, 2017
Research Team Tel: 022 - 39357800
Website: www.angelbroking.com
For Technical Queries
E-mail: [email protected]
For Derivatives Queries
E-mail: [email protected]
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