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Technical & Derivatives Report
October 29, 2020
Nifty
Bank Out
look
(
24232
)
Yesterday, Bank Nifty started on a weak note and it crept lower
throughout the session to test levels around 24000. During the
last couple of hours, the Bank Index consolidated with a minor
bounce to eventually end with a loss of 2.17% at 24232.50. As
mentioned above it's been a tricky week for the market so far as
we witnessed one day up one day down in the last three sessions.
We reiterate that the Bank Index has strong support 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. For the
expiry session, immediate resistance is placed around 24450 -
24780 levels and support levels are placed around 24000 - 23850
levels. Despite the baffling index move, we have seen good stock-
specific action within the sector in the last few days and one should
continue with the same approach on the F&O expiry day.
Key Levels
Support 1 – 24000 Resistance 1 – 24450
Support 2 – 23850 Resistance 2 – 24780
Exhibit 1: Nifty Daily Chart
Sensex (39922) / Nifty (11730)
We had a flat to positive start yesterday despite nervous global cues.
In the initial trades, Nifty went higher and reclaimed 11900; but all
of a sudden from nowhere, the selling augmented in our market,
which was the rub off effect of the sell off in European as well as Dow
futures. In fact, post the mid session, markets literally had a nosedive
to test the 11700 mark.
Market is clearly directionless as we can see one day up one day
down since the last three days. This can be very painful for positional
traders and even sometimes momentum traders can also find it a bit
difficult to cope with such sudden swings. It seems that things are
going to be extremely difficult for the next few days, till the time
coronavirus worries (in Europe) do not fade out and the US
presidential election is over. Ideally, it's advisable to stay light and
keep a regular tab of key levels.
After Tuesday's smart recovery we are back to the make or break
zone of 11700 - 11660. We reiterate that one should remain hopeful
as long as these supports are defended; but in case if things worsen
on the global front, a sustainable move below this would lead to
some short term correction. On the flipside, 11800 followed by
11900 is likely to be seen as intraday hurdles.
.Key Levels
Support 1 – 11700 Resistance 1 – 11800
Support 2 – 11660 Resistance2 – 11900
Exhibit 2: Nifty Bank Daily Chart
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Technical & Derivatives Report
October 29, 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 10/28
(`000)
Openinterest Nifty
Vie
w
s
Nifty corrected sharply on back of negative global cues
before expiry and ended with loss of 1.34% at 11729.60.
FIIs were net sellers in the cash segment to the tune of
Rs. 1131 crores. In index future segment, they sold
worth Rs. 1905 crores with increase in open interest
indicating short formations created yesterday.
Nifty as well as Bank Nifty saw some short formation.
FII's sold equities in the cash segment and formed
shorts on index futures for the second session; taking
their net position more on the short side. In options
segment, good amount of call writing was seen from
11800-12000 strikes. On the other hand, 11700 put
option still has decent open interest outstanding
indicating immediate support. However, if Nifty
continues the correction and 11700 put writers unwind
positions, then it could drag the index towards 11500
mark. We could see higher volatility and thus, traders
are advised to trade cautiously and avoid taking higher
risks.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 3.06%
Bank Nifty futures open interest has increased by 5.34%
as market closed at 11729.60 levels.
The Nifty October future closed with a discount of 8.10
point against a discount of 10.35 point in last trading
session. The November series closed at a premium of 4.95
point.
The INDIA VIX has increased from 22.19 to 23.28.
At the same time, the PCR-OI of Nifty decreased from
1.48 to 1.25.
Few of the liquid counters where we have seen high cost
of carry are IDEA, BHEL, RBLBANK, LUPIN AND CANBK.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
IBULHSGFIN 16588100 7.93 143.30 -3.37
AXISBANK 53846400 6.62 504.70 -0.52
VEDL 70233600 6.50 95.40 1.87
DLF 29026800 5.98 156.00 -5.36
UBL 1967700 5.68 907.40 -1.49
CUMMINSIND 1922400 5.53 443.25 -3.24
RELIANCE 39313240 4.81 2011.45 -1.13
ESCORTS 2636700 4.72 1205.50 -0.95
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
COFORGE 694125 -21.47 2242.20 0.40
AMARAJABAT 1169000 -19.82 745.75 -5.46
VOLTAS 1950000 -18.61 703.00 0.13
RBLBANK 14203800 -15.92 175.35 0.31
RAMCOCEM 1355750 -15.29 770.75 -1.04
CANBK 12310000 -14.45 87.00 -0.96
MUTHOOTFIN 2916750 -14.06 1200.80 -3.65
ASIANPAINT 2750700 -13.64 2159.55 -1.31
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.25 0.91
BANKNIFTY 0.81 0.89
RELIANCE 0.42 0.44
ICICIBANK 0.67 0.56
INFY 0.46 0.41
Historical Volatility
SCRIP HV
AMARAJABAT 46.63
DLF 64.45
BHARTIARTL 49.05
APOLLOTYRE 53.71
CUMMINSIND 41.06
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Technical & Derivatives Report
October 29, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (October Series) are given as an information and not as a recommendation.
Nifty Spot =
11729.60
FII Statistics for October 28, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
6288.34
8193.66
(1905.32) 161981
12963.84
14.66
INDEX
OPTIONS
334083.50
336008.96
(1925.46) 1053882
85596.51
7.43
STOCK
FUTURES
32248.55
30898.66
1349.89
1098994
78252.76
(2.65)
STOCK
OPTIONS
7427.03
7452.16
(25.13) 81531
6068.94
(6.48)
Total 380047.42
382553.44
(2506.02) 2396388
182882.05
2.48
Turnover on October 28, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures
6,70,986 48565.88 20.23
Index
Options
3,60,28,151
26,02,233.54
42.04
Stock Futures
16,53,470 1,22,947.85 -4.11
Stock
Options
15,63,454 1,27,643.01 -16.84
Total 3,99,16,061
29,01,390.28
34.69
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11700 72.15
43.70 56.30 11743.70
Sell 11800 28.45
Buy 11700 72.15
62.45 137.55 11762.45
Sell 11900 9.70
Buy 11800 28.45
18.75 81.25 11818.75
Sell 11900 9.70
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11700 49.65
29.95 70.05 11670.05
Sell 11600 19.70
Buy 11700 49.65
41.95 158.05 11658.05
Sell 11500 7.70
Buy 11600 19.70
12.00 88.00 11588.00
Sell 11500 7.70
Nifty Put-Call Analysis
,0
1000,000
2000,000
3000,000
4000,000
5000,000
6000,000
7000,000
11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000 12100 12200 12300
Call Put
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Technical & Derivatives Report
October 29, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
341
347
359
365
377
ASIANPAINT 2,108 2,134
2,176
2,202
2,244
AXISBANK
481
493
505
517
529
BAJAJ-AUTO 2,857 2,901
2,934
2,977
3,011
BAJFINANCE 3,261 3,316
3,403
3,458
3,545
BAJAJFINSV 5,525 5,584
5,663
5,722
5,801
BPCL
339
342
346
349
353
BHARTIARTL
415
433
461
479
507
BRITANNIA 3,481 3,511
3,555
3,586
3,630
CIPLA
751
758
769
776
787
COALINDIA
111
112
113
114
115
DIVISLAB 3,050 3,091
3,151
3,192
3,252
DRREDDY 4,777 4,864
5,007
5,094
5,237
EICHERMOT 2,081 2,108
2,127
2,154
2,173
GAIL
81
82
84
84
86
GRASIM
763
770
780
787
797
HCLTECH
804
817
834
847
865
HDFCBANK 1,184 1,197
1,214
1,227
1,245
HDFCLIFE
577
582
588
593
599
HDFC 1,913 1,941
1,993
2,021
2,073
HEROMOTOCO 2,866 2,906
2,971
3,011
3,075
HINDALCO
164
167
172
175
180
HINDUNILVR 2,124 2,144
2,164
2,184
2,204
ICICIBANK
385
391
400
406
415
IOC
77
77
78
79
79
INDUSINDBK
568
581
598
611
628
INFY 1,049 1,063
1,084
1,098
1,118
ITC
163
164
166
168
170
JSW STEEL
297
302
308
313
319
KOTAKBANK 1,522 1,537
1,556
1,571
1,590
LT
963
973
984
994
1,004
M&M
585
595
604
613
623
MARUTI 6,987 7,087
7,209
7,309
7,431
NESTLEIND 16,755
16,937
17,116
17,298
17,477
NTPC
86
87
89
90
92
ONGC
65
66
67
67
68
POWERGRID
170
171
173
174
176
RELIANCE 1,975 1,993
2,026
2,044
2,076
SBILIFE
760
765
772
777
784
SHREECEM 20,903
21,132
21,460
21,689
22,017
SBIN
186
188
192
194
197
SUNPHARMA
453
458
467
472
481
TCS 2,578 2,600
2,628
2,650
2,678
TATAMOTORS
127
131
137
141
147
TATASTEEL
389
396
407
414
425
TECHM
778
791
814
827
849
TITAN 1,159 1,188
1,214
1,244
1,270
ULTRACEMCO 4,365 4,417
4,505
4,558
4,646
UPL
431
441
448
458
465
WIPRO
331
333
337
339
342
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Technical & Derivatives Report
October 29, 2020
*
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Technical and Derivatives Team:
Sameet Chavan Chief Analyst - Technical & Derivatives [email protected]ngelbroking.com
Ruchit Jain Senior Analyst - Technical & Derivatives [email protected]gelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com