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Technical & Derivatives Report
October 27, 2020
Nifty
Bank Out
-
(
24075
)
Bank Nifty started the week on a flat note however along with the
broader markets it slipped lower to mark an intraday low of 23867.
During the penultimate hour, it witnessed a marginal bounce after
the announcement of Kotak Bank result to end tad above 24000
with a loss of 1.65%.
As mentioned above the technical structure for the bank index as
well remains positive and yesterday's fall can be taken as a
correction in line with global weakness. Going ahead, strong
support for the bank nifty is placed around 23300 and 23600
which is a confluence zone formed by 20EMA, 200SMA, and bullish
gap on the daily chart. As long prices hold the above support levels
the short-term trend remains positive. On the flip side, immediate
resistance is placed around 24450 - 24600. Volatility is likely to
increase as we move closer to the key event of the US Presidential
election and hence traders are advised to keep position tight and
trade with proper exit setup.
Key Levels
Support 1 – 23600 Resistance 1 – 24450
Support 2 – 23300 Resistance 2 – 24600
Exhibit 1: Nifty Daily Chart
Se
nsex
(
40145)
/ Nifty
(
11768
)
Our markets started the proceedings for the expiry week on a muted
note owing to sluggish global cues. However, as the day progressed,
the trend became cautious on the back of global jitters, especially
from Europe. Due to the broad based selling for the major part of
the session, the Nifty went on to almost kiss the 11700 mark.
Fortunately, the fall got arrested in the last hour to restrict correction
slightly over a percent.
Last week, we witnessed some choppy moves but the overall bias
remained positive. In fact, we had mentioned how multiple technical
indicators are in favour of bulls. All those observations still remain
valid as long as we hold strong as well as crucial support zone of
11700 - 11660. Below this the short term trend reverses and hence,
one should avoid aggressive longs in the market thereafter. Till then
interpret this as a reaction to global development and stay hopeful
for recovery. For the coming session, 11820 followed by 11850
would be seen as immediate resistances.
.Key Levels
Support 1 – 11700 Resistance 1 – 11820
Support 2 – 11660 Resistance2 – 11850
Exhibit 2: Nifty Bank Daily Chart
Yesterday, the breadth was extremely negative and the midcap index
which was placed at an interesting level, saw some decent correction.
Tha banking too corrected but the major culprit in yesterday’s
weakness was Reliance. We reiterate that the volatility is likely to be
on the higher side as we move closer to the US Presidential election.
Hence, traders are advised to stay light and keep strict losses for
positions.
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Technical & Derivatives Report
October 27, 2020
Nifty Vs OI
11500
11550
11600
11650
11700
11750
11800
11850
11900
11950
12000
12050
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
10/12 10/14 10/16 10/20 10/22 10/26
(`000)
Openinterest Nifty
View
s
The indices consolidated within a range in the initial
couple of hours; but then it corrected sharply
throughout the day and ended below the 11800 mark.
FIIs were net sellers in the cash segment to the tune of
Rs. 119 crores. In index future segment, they sold worth
Rs. 600 crores with decrease in open interest of 12
percent indicating unwinding of long as well as short
positions.
Nifty witnessed unwinding of long positions as open
interest declined by over 7 percent. FII's too unwound
their longs in the index futures segment. In options
segment, open interest additions was seen in 11800-
12000 calls whereas some unwinding was seen in
11800-12000 puts. India VIX has ended tad below the
24 mark; a move above 25 could lead to some higher
volatility. The immediate supports are placed around
11700 and 11600 whereas 11800-11900 is the
immediate resistance range. Traders are advised to
avoid aggressive overnight positions considering
higher volatility.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 7.16%
Bank Nifty futures open interest has decreased by 0.21%
as market closed at 11767.75 levels.
The Nifty October future closed with a premium of 10.65
point against a premium of 4.00 point in last trading
session. The November series closed at a premium of 25.7
point.
The INDIA VIX has increased from 21.83 to 22.83.
At the same time, the PCR-OI of Nifty decreased from
1.47 to 1.20.
Few of the liquid counters where we have seen high cost
of carry are IDEA, NATIONALUM, BHEL, PNB AND VEDL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
COFORGE 1124250 97.89 2212.00 -6.77
VOLTAS 2660000 19.93 689.55 -2.28
TORNTPHARM 1092500 13.39 2656.60 -2.74
HEROMOTOCO 3006000 12.58 2897.95 -6.63
INFRATEL 12790400 12.51 188.35 -1.90
MINDTREE 1607200 10.63 1391.85 0.21
EXIDEIND 12250800 9.35 159.55 -1.69
AMARAJABAT 1559000 9.10 760.20 -0.48
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
CANBK 12730000 -20.66 89.70 1.42
VEDL 76136000 -19.22 103.85 -0.38
ESCORTS 2953500 -17.81 1191.70 0.18
GODREJPROP 875550 -13.43 1021.55 -2.12
NATIONALUM 45203000 -12.91 30.75 1.14
LICHSGFIN 9678000 -12.50 298.85 -2.19
BHEL 57456000 -11.80 29.45 1.89
PNB 60662000 -10.70 28.00 2.36
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.20 0.94
BANKNIFTY 0.71 0.94
RELIANCE 0.40 0.61
ICICIBANK 0.67 0.73
INFY 0.43 0.56
Historical Volatility
SCRIP HV
BAJAJ-AUTO 42.85
HEROMOTOCO 49.97
COFORGE 69.15
M&M 50.47
HINDALCO 63.18
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Technical & Derivatives Report
October 27, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (October Series) are given as an information and not as a recommendation.
Nifty Spot =
11767.75
FII Statistics for October 26, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
4980.21 5580.23 (600.02) 129892 10369.79 (12.00)
INDEX
OPTIONS
218108.94 218581.00 (472.06) 870746 70796.86 3.54
STOCK
FUTURES
33068.76 32356.20 712.56
1120215 80058.69 0.46
STOCK
OPTIONS
8797.62 8748.31 49.31
95996 7313.78 (9.04)
Total 264955.53
265265.74
(310.21) 2216849
168539.12
0.35
Turnover on October 26, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
5,28,607 37438.25 37.59
Index
Options
2,12,25,428
15,45,517.55
64.08
Stock Futures
14,04,285 1,02,304.44 36.60
Stock
Options
17,97,123 1,44,467.71 19.96
Total 2,49,55,443
18,29,727.95
57.13
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11800 86.10
39.10 60.90 11839.10
Sell 11900 47.00
Buy 11800 86.10
62.35 137.65 11862.35
Sell 12000 23.75
Buy 11900 47.00
23.25 76.75 11923.25
Sell 12000 23.75
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11700 65.25
28.10 71.90 11671.90
Sell 11600 37.15
Buy 11700 65.25
44.90 155.10 11655.10
Sell 11500 20.35
Buy 11600 37.15
16.80 83.20 11583.20
Sell 11500 20.35
Nifty Put-Call Analysis
,0
1000,000
2000,000
3000,000
4000,000
5000,000
6000,000
11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300
Call Put
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Technical & Derivatives Report
October 27, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
352
358
366
372
380
ASIANPAINT 2,043 2,062
2,089
2,108
2,135
AXISBANK
479
486
498
505
517
BAJAJ-AUTO 2,736 2,816
2,965
3,044
3,193
BAJFINANCE 3,194 3,244
3,287
3,337
3,380
BAJAJFINSV 5,512 5,606
5,740
5,834
5,967
BPCL
336
341
347
352
359
BHARTIARTL
422
428
434
440
445
BRITANNIA 3,446 3,466
3,486
3,505
3,525
CIPLA
730
738
751
760
773
COALINDIA
112
113
116
117
119
DIVISLAB 2,987 3,014
3,048
3,076
3,109
DRREDDY 4,886 4,932
4,997
5,043
5,108
EICHERMOT 2,014 2,061
2,138
2,185
2,261
GAIL
83
84
86
87
89
GRASIM
757
769
779
791
801
HCLTECH
831
840
850
858
869
HDFCBANK 1,182 1,196
1,219
1,234
1,257
HDFCLIFE
556
567
575
586
594
HDFC 2,039 2,056
2,070
2,087
2,101
HEROMOTOCO 2,719 2,809
2,964
3,054
3,209
HINDALCO
162
167
175
180
188
HINDUNILVR 2,131 2,149
2,160
2,178
2,190
ICICIBANK
391
398
408
415
426
IOC
77
78
78
79
80
INDUSINDBK
601
609
621
629
641
INFY 1,089 1,101
1,115
1,127
1,142
ITC
166
167
169
171
173
JSW STEEL
298
303
309
315
321
KOTAKBANK 1,316 1,367
1,398
1,448
1,479
LT
935
943
951
960
968
M&M
575
586
606
617
637
MARUTI 6,824 6,939
7,050
7,166
7,277
NESTLEIND 15,906
16,083
16,229
16,406
16,552
NTPC
82
84
86
88
90
ONGC
67
67
68
69
70
POWERGRID
168
170
172
173
175
RELIANCE 1,966 1,998
2,050
2,081
2,133
SBILIFE
756
768
776
787
796
SHREECEM 19,753
20,089
20,449
20,785
21,146
SBIN
190
194
199
202
207
SUNPHARMA
461
468
478
484
494
TCS 2,650 2,669
2,690
2,709
2,729
TATAMOTORS
126
130
135
139
145
TATASTEEL
393
401
412
420
431
TECHM
789
804
829
845
870
TITAN 1,186 1,201
1,225
1,240
1,265
ULTRACEMCO 4,411 4,448
4,496
4,533
4,581
UPL
417
425
440
448
463
WIPRO
332
336
340
344
349
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Technical & Derivatives Report
October 27, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical Queries E-mail: [email protected]lbroking.com
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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 ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com