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February 23, 2021
Technical & Derivatives Report
Nifty
Bank Out
-
(
35257)
The Bank Nifty aswell started on a flat note and along with the
broader markets continue to crept lower to end with a loss of 1.63%
at 35257.
For the fifth consecutive session, the bank index witnessed
correction and has now erased around 2500 from all-time high
levels. Yesterday, the quantum of fall was relatively less as
compared to the benchmark index as the bank nifty has
approached the key support of 35000. Going with the current
momentum it seems that the support levels can be broken however
with the monthly expiry lined up; we would keep a close watch on
the same. A break below it can trigger a fresh leg of downside
whereas if prices manage to hold then we may see some bounce
back. Traders are advised to keep a tab on the same and trade
accordingly. Below, 35000 the next support levels are placed
around 34700 whereas, on the flip side, 35650 - 35800 is the
immediate resistance zone.
Key Levels
Support 1 – 35000 Resistance 1 – 35650
Support 2 – 34700 Resistance 2 – 35800
Exhibit 1: Nifty Daily Chart
Sensex (49744) / Nifty (14676)
Trading for the week started on a flat note owing to muted global
cues. However, without wasting much of a time, Nifty slid into the
negative terrain. The selling pressure augmented as the day
progressed and all attempts of a rebound were comfortably getting
sold into. Due to tail end correction, Nifty ended the session with a
cut over couple of percent, marking biggest loss in the February
month.
Throughout last week, we maintained our cautious stance on the
market and suggested exiting longs in the zone of 15200 15400.
In last couple of sessions, we had seen a glimpse of profit booking
which eventually turned into a decent correction yesterday to break
some key supports. The Nifty has now reached to our first target of
14750 and the way its placed now, 14550 – 14470 is very much on
cards. As of now, these levels should be considered a key support
zone; but one needs to see how market behaves after entering it.
Yesterday, the banking space did not participate to the tune of
benchmark in the correction; but going ahead, if we see BANKNIFTY
sliding below its key support of 35000, it will drag the Nifty towards
14300 as well. Hence, the coming session would be quite crucial,
especially for banking stocks. As far as Nifty is concerned, it has
broken below ’20-day EMA’ and hence, any bounce towards 14775
14850 is likely to get sold into.
.
Exhibit 2: Nifty Bank Daily Chart
Yesterday, the only space that outshined was Metal’ but we are a bit
unsure whether this outperformance will continue if Nifty slides
below 14600. Apart from this, the broader market too saw decent
correction for the second consecutive session and has closed around
key supports. A follow through selling in NIFTY MIDCAP50 index will
lead to strong correction in the remaining part of the week. Hence,
one needs to avoid aggressive bets and should trade with a strict
stop loss.
Key Levels
Support 1 – 14550 Resistance 1 – 14775
Support 2 – 14470 Resistance2 – 14850
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Technical & Derivatives Report
February 23, 2021
Nifty Vs OI
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
116,000
118,000
120,000
122,000
124,000
126,000
128,000
130,000
132,000
2/9 2/12 2/17 2/19
(`000)
Openinterest Nifty
View
Nifty started the day on a flat note, but it gradually
corrected throughout the session and ended with a deep
cut of over 2 percent. We witnessed unwinding of
positions in Nifty while marginal open interest decline
was seen in banking index as well.
FIIs were net sellers in the cash segment to the tune of
893 crores. In Index Future segment they bought worth
749 crores with rise in open interest indicating long
formations and short unwinding in yesterday’s session
.
FII's were net sellers in the cash segment while they
formed some longs in the index futures segment. In the
options segment, put writers ran to cover their positions
as the market kept sliding while decent amount of writing
was witnessed in 14800-15000 calls. The data indicates
that the market has corrected due to profit booking while
no major short formation is there in this fall. The options
data hints at a support near 14500 while 14800-14900
would be the resistance on pullback moves.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 3.53%
Bank Nifty futures open interest has decreased by 1.66%
as market closed at 14675.70 levels.
The Nifty February future closed with a discount of 3.05
point against a premium of 5.75 point in last trading
session. The March series closed at a premium of 46.6
point.
The INDIA VIX increased from 22.25 to 25.47.
At the same time, the PCR-OI of Nifty decreased from
1.19 to 0.99.
Few of the liquid counters where we have seen high cost
of carry are IDEA, AXISBANK,MUTHOOTFIN, INDIGO AND
MANAPPURAM.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CHOLAFIN 9447500 52.32 528.65 -2.79
BAJFINANCE 4961500 22.08 5377.00 -2.28
COALINDIA 48892200 19.27 136.25 -1.90
PVR 2163205 18.35 1382.10 -6.31
RECLTD 16326000 16.78 139.55 -4.08
ICICIPRULI 9285000 16.20 465.75 -4.07
LALPATHLAB 143750 15.00 2395.05 -1.33
JUBLFOOD 1688500 14.51 3114.10 5.47
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
HEROMOTOCO 3473100 -10.12 3414.10 0.44
DLF 29036700 -9.26 294.05 -2.22
BANDHANBNK 23583600 -9.13 326.90 -3.13
BHEL 126819000 -8.19 39.65 -1.61
AARTIIND 450500 -8.15 1222.35 2.99
IBULHSGFIN 33433500 -7.77 220.00 -4.32
BRITANNIA 3072200 -7.34 3341.25 0.04
AMARAJABAT 4173000 -6.85 904.90 2.13
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 0.99 0.85
BANKNIFTY 0.68 1.07
RELIANCE 0.45 0.60
ICICIBANK 0.69 0.64
INFY 0.46 0.54
Historical Volatility
SCRIP HV
DRREDDY 36.80
PVR 60.32
JUBLFOOD 48.75
VEDL 64.08
TCS 36.24
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Technical & Derivatives Report
February 23, 2021
Note: Above mentioned Bullish or Bearish Spreads in Nifty (February Series) are given as an information and not as a recommendation.
Nifty Spot =
14675.70
FII Statistics for February 22, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
7509.28
6759.82
749.46
130984
13660.95
1.68
INDEX
OPTIONS
397792.20
393428.17
4364.03
1039704
108610.10
10.33
STOCK
FUTURES
44843.37
44641.44
201.93
1252642
106278.21
1.56
STOCK
OPTIONS
17911.58
17844.50
67.08
199310
17182.54
(2.86)
Total 468056.43
462673.93
5382.50
2622640
245731.80
4.50
Turnover on February 22, 2020
Instrum
ent
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 4,87,401 48043.23 5.21
Index Options 3,01,45,546
29,75,615.20 26.83
Stock Futures 16,20,635
1,44,637.68 22.28
Stock Options 23,58,961
2,18,834.29 -10.74
Total 3,46,12,543
33,87,130.40 22.94
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 14700 112.70
43.60 56.40 14743.60
Sell 14800 69.10
Buy 14700 112.70
72.65 127.35 14772.65
Sell 14900 40.05
Buy 14800 69.10
29.05 70.95 14829.05
Sell 14900 40.05
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 14700 131.75
39.50 60.50 14660.50
Sell 14600 92.25
Buy 14700 131.75
69.65 130.35 14630.35
Sell 14500 62.10
Buy 14600 92.25
30.15 69.85 14569.85
Sell 14500 62.10
Nifty Put-Call Analysis
,0
1000,000
2000,000
3000,000
4000,000
5000,000
6000,000
14000 14100 14200 14300 14400 14500 14600 14700 14800 14900 15000 15100 15200 15300
Call Put
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February 23, 2021
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
638
656
667
685
697
ASIANPAINT 2,337 2,362
2,405
2,430
2,473
AXISBANK
693
706
728
741
763
BAJAJ-AUTO 3,866 3,919
3,979
4,032
4,093
BAJFINANCE 5,213 5,295
5,417
5,499
5,621
BAJAJFINSV 9,781 9,891
10,070
10,180
10,359
BPCL
408
415
425
433
443
BHARTIARTL
558
564
574
581
591
BRITANNIA 3,288 3,314
3,344
3,371
3,401
CIPLA
767
780
799
811
830
COALINDIA
133
134
137
139
141
DIVISLAB 3,424 3,460
3,512
3,548
3,600
DRREDDY 4,263 4,366
4,546
4,650
4,830
EICHERMOT 2,367 2,425
2,507
2,565
2,647
GAIL
140
141
143
145
147
GRASIM 1,207 1,219
1,227
1,239
1,247
HCLTECH
894
907
929
942
965
HDFCBANK 1,519 1,534
1,554
1,568
1,588
HDFCLIFE
672
681
697
707
723
HDFC 2,574 2,613
2,677
2,716
2,780
HEROMOTOCO 3,316 3,365
3,399
3,448
3,482
HINDALCO
300
308
318
326
336
HINDUNILVR 2,135 2,151
2,178
2,195
2,221
ICICIBANK
593
602
615
624
637
IOC
93
94
96
98
100
INDUSINDBK
987
1,005
1,036
1,054
1,085
INFY 1,229 1,247
1,278
1,296
1,326
ITC
202
205
208
211
214
JSW STEEL
388
397
405
415
423
KOTAKBANK 1,904 1,927
1,944
1,967
1,985
LT 1,406 1,429
1,470
1,494
1,535
M&M
802
819
851
869
900
MARUTI 6,887 6,987
7,156
7,256
7,425
NESTLEIND 15,712
15,904
16,217
16,409
16,722
NTPC
98
100
103
105
108
ONGC
103
105
107
108
110
POWERGRID
217
221
227
231
238
RELIANCE 1,936 1,972
2,031
2,067
2,126
SBILIFE
820
834
860
874
900
SHREECEM 26,434
26,762
27,256
27,585
28,078
SBIN
377
383
392
398
407
SUNPHARMA
578
587
599
607
619
TCS 2,846 2,902
2,999
3,055
3,152
TATAMOTORS
295
300
307
312
319
TATASTEEL
657
671
684
698
711
TECHM
899
925
968
994
1,037
TITAN 1,374 1,390
1,411
1,427
1,449
ULTRACEMCO 6,013 6,094
6,190
6,270
6,366
UPL
521
531
546
555
570
WIPRO
406
412
423
429
439
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Technical & Derivatives Report
February 23, 2021
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
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For Derivatives Queries E-mail: derivatives.d[email protected]
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst - Technical & Derivatives sameet.chavan@angelbroking.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