Technical & Derivatives Report
December 26, 2017
Sensex (33940) / Nifty (10493)
Exhibit 1: Nifty Daily Chart
Last week, barring first couple of days, the index did nothing for
the remaining part of the session as we saw interest getting
shifted to the boarder market post the Gujarat Assembly election
verdict and ahead of Christmas celebrations. Eventually, some
buying towards the fag end pushed the Nifty towards it’s yet
another milestone of 10500.
If we go back to previous week, we saw sharp volatile moves in
the initial part of Monday during the counting process. But then
post the final verdict, the index settled above 10400 and
remained sideways with a positive bias throughout the remaining
part of the week. Technically speaking, we see a trading range
of 10500 - 10370 for the index and a sustainable move outside
the range would trigger some momentum. A breakout in upward
direction would extend the rally towards 10600
-
10640;
whereas a slide below the lower range would trigger some
weakness. We would like to highlight one notable observation in
the ‘Nifty Midcap’ index. We saw this index hitting fresh highs
during the week, which obviously was an encouraging sign for
the traders and we also advised participating in it. We generally
see good rally in midcap basket during the last week of calendar
year, termed as ‘Santa Rally’; but, now, we do not want to be in
such bandwagon as we are seeing some cautionary signs on
charts. The daily chart exhibits a ‘Wolfe Wave’ and as per the
requirement, the 5th point has been met at the 161% retracement
level of the recent down move. The said structure is considered as
a contrarian play and thus, sometimes it works on assumptions.
But, to add weightage to this hypothesis, we can also see a ‘3-
point Negative Divergence’ in ‘RSI-Smoothened’ oscillator.
Hence, we advise traders to be very selective while picking up the
stock, do not trade aggressively and follow strict stop losses.
Key Levels
Support 1 - 10410
Resistance 1 - 10500
Support 2 - 10372
Resistance 2 - 10540
Nifty Bank Outlook - (25649)
Exhibit 2: Nifty Bank Daily Chart
If we observe last week's movement in the Nifty Bank index, it is
seen that post an up move in Monday's session (day of Gujarat
election results), the index has consolidated in a narrow range for
rest of the week. The Nifty Bank index had a gap down opening
during the corrective move on 30th Nov. which has now acted as
resistance during the entire week. Hence, going ahead, it would
be prudent for the Nifty Bank index to cross the resistance zone of
25750-25800 for a continuation of the uptrend. Traders should
wait for a clear breakout above the mentioned resistance to take
a directional view in the Nifty Bank index. Until then, we continue
with our advice to focus on stock specific moves and trade with
proper risk management.
Key Levels
Support 1 - 25550
Resistance 1 - 25750
Support 2 - 25465
Resistance 2 - 25800
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Technical & Derivatives Report
December 26, 2017
Comments
Nifty Vs OI
The Nifty futures open interest has increased by 6.59%
BankNifty futures open interest has increased by 7.50%
as market closed at 10493.00 levels.
The Nifty December future closed with a premium of
12.45 points against a premium of 22.15 points in last
trading session. The January series closed at a premium
of 52 points.
The INDIA VIX has decreased from 12.08 to 11.58. At
the same time, the PCR-OI of Nifty has decreased from
1.49 to 1.59 level.
Few of the liquid counters where we have seen high cost
of carry are MCX, JPASSOCIAT, OFSS, HCC and M&M.
Views
FIIs were marginal buyers in cash market segment. At the
OI Gainers
same time, they were sellers in index futures of Rs. 507
OI
PRICE
crores with rise in open interest, indicating formation
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
short positions on Friday’s trading session.
PIDILITIND
1409000
22.10
947.65
2.12
In index options front, they were buyers of Rs. 790 crores
VGUARD
3750000
17.92
239.10
2.42
with fall in open interest. In call options, except for some
MINDTREE
1972800
15.21
601.05
4.10
build-up in 10650 strike, we could hardly see any
OIL
2884618
13.16
359.50
0.20
relevant OI addition in call options. However, good
RNAVAL
17541000
10.55
43.25
8.67
amount of unwinding was visible in 10000-10500 call
ENGINERSIN
14861000
10.54
205.45
6.53
options. On the flip side, 10200, 10400-10500 put
MCX
3127500
9.95
949.65
-1.31
options added huge positions.
ASIANPAINT
4024800
7.41
1138.65
-0.04
Last week, we witnessed the index rebounding from the
support zone of 10100-10150 and touched another
milestone of 10500 mark. In the recent up move, we
OI Losers
also saw good amount of positions forming in index
OI
PRICE
futures; but, daily open interest activity hints these are
SCRIP
OI
PRICE
CHG. (%)
CHG. (%)
blend of both long and short positions. As far as options
DALMIABHA
631500
-15.73
3280.65
0.54
are concerned, stronger hands are buying index call
WOCKPHARMA
3737200
-12.68
874.80
-2.30
options and writing index put options. At present, we
TVSMOTOR
5026000
-10.14
776.35
-0.36
believe 10350-10400 is a strong support for market
IFCI
95634000
-9.17
27.20
-5.88
now. While, looking at the unwinding that took place
RCOM
121324000
-8.05
16.35
-9.42
especially in 10500 call options, we believe momentum
MRF
68580
-7.15
72869.50
2.55
can continue in the upcoming week. Hence, traders are
MUTHOOTFIN
2062500
-6.65
464.55
-1.99
advised avoiding shorting index and prefer stock specific
CEATLTD
1204700
-5.36
1950.45
1.46
approach as they have better risk reward ratio.
Put-Call Ratio
Historical Volatility
SCRIP
PCR-OI
PCR-VOL
SCRIP
HV
NIFTY
1.59
1.34
ENGINERSIN
41.98
BANKNIFTY
1.23
1.08
ADANIPOWER
51.47
RELIANCE
0.36
0.30
RNAVAL
78.16
MARUTI
0.72
0.40
HCC
55.17
INFY
1.12
0.60
ONGC
28.19
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Technical & Derivatives Report
December 26, 2017
FII Statistics for December 22, 2017
Turnover on December 22, 2017
Open Interest
No. of
Turnover
Change
Detail
Buy
Sell
Net
Instrument
Value
Change
Contracts
( in Cr. )
(%)
Contracts
(in Cr.)
(%)
INDEX
INDEX
4036.95
4544.09
(507.14)
239138
19392.77
7.80
203436
17119.96
19.41
FUTURES
FUTURES
INDEX
INDEX
30971.07
30180.95
790.12
1298002
104567.65
(0.60)
4127221
355899.91
-58.66
OPTIONS
OPTIONS
STOCK
13059.19
12944.40
114.79
1020121
73572.09
(0.79)
STOCK
FUTURES
990045
71865.10
10.09
FUTURES
STOCK
STOCK
8928.33
8891.78
36.55
81525
6111.55
2.03
699152
52454.97
9.61
OPTIONS
OPTIONS
Total
56995.55
56561.22
434.33
2638786
203644.05
0.11
TOTAL
6019854
497339.94
-49.68
Nifty Spot = 10493.00
Lot Size = 75
Bull-Call Spreads
Bear-Put Spreads
Action
Strike
Price
Risk
Reward
BEP
Action
Strike
Price
Risk
Reward
BEP
Buy
10500
46.35
Buy
10500
45.95
35.10
64.90
10535.10
24.45
75.55
10475.55
Sell
10600
11.25
Sell
10400
21.50
Buy
10500
46.35
Buy
10500
45.95
44.10
155.90
10544.10
35.75
164.25
10464.25
Sell
10700
2.25
Sell
10300
10.20
Buy
10600
11.25
Buy
10400
21.50
9.00
91.00
10609.00
11.30
88.70
10388.70
Sell
10700
2.25
Sell
10300
10.20
Note: Above mentioned Bullish or Bearish Spreads in Nifty (December Series) are given as an information and not as a recommendation.
Nifty Put-Call Analysis
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Technical & Derivatives Report
December 26, 2017
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
393
398
404
408
414
AMBUJACEM
265
266
268
269
271
ASIANPAINT
1,128
1,133
1,138
1,143
1,148
AUROPHARMA
668
675
683
690
699
AXISBANK
544
549
552
557
560
BAJAJ-AUTO
3,212
3,270
3,314
3,373
3,417
BAJFINANCE
1,735
1,759
1,774
1,797
1,812
BPCL
526
531
534
538
541
BHARTIARTL
515
522
530
537
546
INFRATEL
356
360
363
367
369
BOSCHLTD
19,774
19,850
19,911
19,988
20,049
CIPLA
596
599
601
604
607
COALINDIA
263
265
267
268
270
DRREDDY
2,309
2,321
2,342
2,354
2,375
EICHERMOT
29,653
29,952
30,336
30,635
31,019
GAIL
496
500
504
508
512
HCLTECH
871
879
886
894
901
HDFCBANK
1,855
1,866
1,873
1,884
1,891
HDFC
1,688
1,699
1,708
1,719
1,728
HEROMOTOCO
3,744
3,768
3,799
3,823
3,854
HINDALCO
261
264
267
270
273
HINDPETRO
423
426
429
432
435
HINDUNILVR
1,334
1,345
1,352
1,364
1,371
IBULHSGFIN
1,177
1,185
1,193
1,202
1,210
ICICIBANK
311
314
317
319
322
IOC
407
409
411
412
414
INDUSINDBK
1,639
1,645
1,653
1,660
1,668
INFY
1,005
1,022
1,033
1,051
1,062
ITC
261
262
263
264
265
KOTAKBANK
1,002
1,006
1,010
1,014
1,019
LT
1,246
1,256
1,263
1,273
1,280
LUPIN
859
865
874
880
889
M&M
737
742
748
752
758
MARUTI
9,490
9,595
9,710
9,815
9,930
NTPC
178
179
180
181
181
ONGC
186
190
192
196
198
POWERGRID
201
202
203
204
205
RELIANCE
904
912
917
925
930
SBIN
313
316
320
324
327
SUNPHARMA
523
527
530
534
538
TCS
2,560
2,603
2,634
2,677
2,707
TATAMOTORS
418
420
423
425
429
TATASTEEL
702
707
712
716
721
TECHM
484
489
493
498
502
ULTRACEMCO
4,218
4,253
4,302
4,337
4,385
UPL
719
725
731
737
743
VEDANTA
309
313
316
320
323
WIPRO
293
297
300
305
308
YESBANK
306
308
311
313
316
ZEEL
565
570
575
580
585
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Technical & Derivatives Report
December 26, 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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