Technical & Derivatives Report
December 27, 2018
Sensex (35650) / Nifty (10730)
Exhibit 1: Nifty Daily Chart
What a spectacular trading day it was for our markets. Initially,
we saw index starting the day marginally lower and then
extending the weakness to sneak below the
10550 mark.
However, from the very next hour, there was strong buying
witnessed at lower levels which aggravated post the midsession to
clock handsome gains of over six tenths of a percent to reclaim
the 10700 mark with some authority.
There couldn’t have been the better gift traders’ would have
expected during the Christmas celebrations. We not only
managed to recover from the low; but also managed to reclaim
key support level of
10700. Technically speaking, due to
yesterday’s recovery, we can see a ‘Piercing Line’ pattern on daily
chart. It is considered a bullish reversal and hence, going ahead,
any decline should be used as a buying opportunity. In fact, we
will not be surprised to see Nifty jumping back to 10880 - 10920
in next couple of days. On the downside, 10680 - 10640 are
seen as immediate support levels.
If we look at the banking index, we saw stellar move in Bank
Nifty, which went on to form ‘Bullish Engulfing’ as well as ‘Perfect
Upward Bar Reversal’ patterns on daily chart, that too precisely at
50% retracement of the recent up move and around the pull back
zone of ‘Downward Sloping Trend Line’. Going ahead, we expect
banking basket to remain a major driver in the possible rally.
Also, the ‘Midcap’ index showed encouraging signs, which we
believe may provide better opportunities in the broader market.
Key Levels
Support 1 - 10680
Resistance 1 -
10800
Support 2 - 10640
Resistance 2 -
10880
Nifty Bank Outlook - (26987)
Exhibit 2: Nifty Bank Daily Chart
The Nifty Bank Index too started with a lower opening and
witnessed a slid towards 26400 mark in the initial first few hours
of the trade. The second half was however very encouraging for
the bulls as we witnessed strong up move to eventually end with
gains of a percent tad below 27000 mark.
As mentioned above the Bank Index has formed a ‘Bullish
Engulfing’ as well as ‘Perfect Upward Bar Reversal’. The said
patterns were supported with broad-based buying and hence
a further extension of up move cannot be ruled out. As far as
levels are concerned 27158-27386 are the next immediate
resistance whereas, on the flip side,
26900-26830 is the
immediate support levels. On the F&O expiry session, traders are
advised to focus on stock specific trades and looking at the recent
price action of PSU Banks we sense they are likely to provide
a better trading setup.
Key Levels
Support 1 - 26900
Resistance 1 -
27158
Support 2 - 26830
Resistance 2 -
27386
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Technical & Derivatives Report
December 27, 2018
Comments
Nifty Vs OI
The Nifty futures open interest has increased by 11.92%.
Bank Nifty futures open interest has decreased by 0.65%
as market closed at 10729.85 levels.
The Nifty December future closed with a premium of
18.65 points against a premium of 18.40 points in last
trading session. The January series closed at a premium
of 60.85 points.
The INDIA VIX has increased from 15.75 to 15.92.
At the same time, the PCR-OI of Nifty has increased from
1.26 to 1.39.
Few of the liquid counters where we have seen high cost
of carry are SOUTHBANK, TORNTPOWER, DISHTV,
CESC and FEDERALBNK.
Views
OI Gainers
FIIs activity in cash market segment remained muted. In
OI
PRICE
SCRIP
OI
PRICE
index futures segment, they sold of Rs. 755 crores with
CHG. (%)
CHG. (%)
rise in open interest, indicating short formation took
IGL
7051000
16.49
262.50
-0.85
place in yesterday’s trading session.
JSWSTEEL
56961000
13.49
296.30
1.47
In options front, they sold marginally with fall in open
ENGINERSIN
10361000
12.49
126.70
0.56
interest. As far as Nifty options activities are considered,
CHOLAFIN
1370000
11.02
1222.80
-0.11
we saw massive unwinding in 10700-11200 call options.
GMRINFRA
211500000
9.84
16.20
2.53
Meanwhile, put writing was seen in
10500-10750
JETAIRWAYS
5915400
8.99
268.80
12.11
strikes. Now, Maximum open interest for December
INDUSINDBK
6850800
7.85
1556.45
-0.27
series now stands at 11000 call and 10000 put options.
HDFCBANK
14981000
7.80
2122.35
1.79
It was indeed a volatile day for our market, as Nifty
opened with a downside gap and plunged below 10550
mark. However, sharp recovery from the support zone of
OI Losers
10500-10550 brought index back above 10700 mark
OI
PRICE
SCRIP
OI
PRICE
on the closing bases. We saw huge long formation in
CHG. (%)
CHG. (%)
HEXAWARE
2911500
-16.70
315.75
0.57
Nifty; whereas, mixed activity was seen in banking index.
PCJEWELLER
8097500
-16.34
81.15
-1.93
In addition, good amount of unwinding was also seen in
CAPF
4300900
-14.11
592.45
-0.17
OTM calls strikes of Nifty; which is certainly a positive
UBL
2084600
-13.33
1358.15
0.85
indication. Considering the above data points, we expect
continuation
of
yesterday’s
upmove towards
UJJIVAN
4148800
-11.35
274.65
0.93
10950-11000. Hence, any dips in intraday shall be an
KPIT
5357250
-11.12
216.20
-1.12
opportunity to re-enter.
TATACHEM
2707500
-10.69
701.25
-1.29
VGUARD
3372000
-10.58
226.60
-1.52
Historical Volatility
Put-Call Ratio
SCRIP
HV
SCRIP
PCR-OI
PCR-VOL
JETAIRWAYS
99.56
NIFTY
1.39
0.89
ADANIPORTS
44.97
BANKNIFTY
1.16
0.82
SIEMENS
43.85
RELIANCE
0.47
0.60
HDFCBANK
21.59
ICICIBANK
0.65
0.72
AMBUJACEM
42.09
INFY
0.62
0.54
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Technical & Derivatives Report
December 27, 2018
FII Statistics for December 26, 2018
Turnover on December 26, 2018
Open Interest
No. of
Turnover
Change
Detail
Buy
Sell
Net
Instrument
Value
Change
Contracts
( in Cr. )
(%)
Contracts
(in Cr.)
(%)
INDEX
INDEX
13921.68
14676.42
(754.74)
443106
34263.28
11.58
669935
46891.80
49.00
FUTURES
FUTURES
INDEX
INDEX
151864.57
151949.34
(84.77)
904516
67556.53
(0.87)
20833064
1298078.84
73.31
OPTIONS
OPTIONS
STOCK
32306.16
32578.21
(272.05)
1517487
90480.81
2.12
STOCK
FUTURES
2005831
114675.89
7.37
FUTURES
STOCK
STOCK
7071.84
7080.18
(8.34)
161995
8995.63
(1.41)
1065802
63165.26
23.46
OPTIONS
OPTIONS
Total
205164.25
206284.16
(1119.91)
3027104
201296.24
2.27
TOTAL
74455
700968
62.27
Nifty Spot = 10729.85
Bull-Call Spreads
Bear-Put Spreads
Action
Strike
Price
Risk
Reward
BEP
Action
Strike
Price
Risk
Reward
BEP
Buy
10700
69.65
Buy
10700
25.55
46.30
53.70
10746.30
17.95
82.05
10682.05
Sell
10800
23.35
Sell
10600
7.60
Buy
10700
69.65
Buy
10700
25.55
64.45
135.55
10764.45
21.95
-321.95
10678.05
Sell
10900
5.20
Sell
11000
3.60
Buy
10800
23.35
Buy
10600
7.60
18.15
81.85
10818.15
4.00
-404.00
10596.00
Sell
10900
5.20
Sell
11000
3.60
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 27, 2018
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
350
363
371
384
392
ASIANPAINT
1,334
1,349
1,362
1,376
1,389
AXISBANK
595
607
616
628
636
BAJAJ-AUTO
2,638
2,686
2,718
2,766
2,798
BAJFINANCE
2,472
2,520
2,551
2,599
2,631
BAJAJFINSV
6,036
6,238
6,351
6,553
6,666
BPCL
352
359
365
372
378
BHARTIARTL
295
308
315
328
336
INFRATEL
255
259
262
266
269
CIPLA
502
508
514
520
525
COALINDIA
243
245
248
250
252
DRREDDY
2,556
2,589
2,609
2,642
2,661
EICHERMOT
22,327
22,704
23,077
23,454
23,827
GAIL
338
345
350
358
362
GRASIM
785
802
812
829
839
HCLTECH
924
933
941
950
957
HDFCBANK
2,048
2,085
2,106
2,143
2,164
HDFC
1,859
1,896
1,920
1,958
1,982
HEROMOTOCO
3,098
3,137
3,174
3,213
3,250
HINDALCO
210
214
217
221
224
HINDPETRO
242
245
248
252
254
HINDUNILVR
1,720
1,756
1,777
1,813
1,835
IBULHSGFIN
773
802
819
848
865
ICICIBANK
345
350
354
359
362
IOC
132
134
135
136
138
INDUSINDBK
1,503
1,530
1,547
1,574
1,592
INFY
633
639
643
648
652
ITC
273
275
277
279
281
JSW STEEL
285
291
294
300
303
KOTAKBANK
1,196
1,222
1,236
1,262
1,277
LT
1,365
1,394
1,413
1,442
1,461
M&M
763
775
784
797
806
MARUTI
7,326
7,447
7,524
7,645
7,722
NTPC
142
144
146
148
150
ONGC
144
145
147
149
151
POWERGRID
189
192
194
197
199
RELIANCE
1,054
1,076
1,088
1,110
1,122
SBIN
284
289
292
297
300
SUNPHARMA
402
408
416
421
429
TCS
1,842
1,866
1,894
1,917
1,945
TATAMOTORS
166
168
170
173
175
TATASTEEL
499
506
512
519
525
TECHM
681
687
692
699
704
TITAN
854
872
886
903
918
ULTRACEMCO
3,803
3,899
3,954
4,050
4,105
UPL
719
735
743
759
767
VEDANTA
191
194
196
198
200
WIPRO
316
321
324
329
332
YESBANK
170
175
179
183
187
ZEEL
422
439
448
464
473
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Technical & Derivatives Report
December 27, 2018
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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