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January 05, 2021

Technical & Derivatives Report

Nifty

Bank Out

look

(

31212)

The banking index opened higher in line with benchmark; but in

the initial couple of hours, we witnessed a nosedive to enter sub-

31000 territory. Fortunately, the entire market recovered during

the remaining part of the session and although BANKNIFTY didn’t

recover to the tune of its peers, it managed to recoup decent

losses to end on a flat note.

We are witnessing good traction in most of the sectoral indices

(especially midcap space); but banking somehow seems to have

lost its mojo. In last couple of sessions, we witnessed a sheer

underperformance from banking conglomerates. Going ahead,

31000-31500 would be seen as a crucial range. A decisive move

outside this range would dictate the immediate direction. Hence,

traders are advised to avoid aggressive longs until it breaks 31500;

whereas a sustainable move below 31000-30900 would result in

a correction towards 30600-30400 levels.

Key Levels

Support 1 – 30900 Resistance 1 – 31500

Support 2 – 30600 Resistance 2 – 31800

Exhibit 1: Nifty Daily Chart

Sensex (48177) / Nifty (14133)

Our markets started the week above 14100 on back of positive

global cues. Post some consolidation, the index corrected and

sneaked below the 14000 mark, but the dip again got bought into

and Nifty crept higher for the rest of the day to end well above 14100

with gains of over 100 points.

The bulls are reluctant to give up and the intraday dip again

witnessed good buying interest from market participants. Nifty

continued to make new milestones and all the sectors, except

banking, participated in the up move yesterday. So the trend

continues to be positive with no signs of reversal. However, at all-

time highs, usually retracement and extensions of the previous

moves works well to determine the resistances. When applied certain

retracement to the recent correction and an extension to first the

price upmove from the March low, the resistance for Nifty comes in

the range of 14170-14200 which is not very far from yesterday’s

close. Hence, it would be crucial to see how the index behaves

around this resistance and thus market participants should be

vigilant of the same. It is definitely not advisable to take any contra

calls in anticipation of any reversal as we are trading in a strong

uptrend, but traders should prefer to book timely profits on existing

positions and tighten the risk management part of the trade. The

immediate support for the Nifty is placed at 13950 and now

becomes a sacrosanct for this leg of upmove.

Most of the sectors participated in the up move yesterday with

Metals,IT and some Pharma names showing significant

outperformance. On the other hand, the banking space continued

to consolidate and underperformed relatively. Traders are advised to

focus on such stock specific opportunities which are providing good

moves and capitalize on the same.

Key Levels

Support 1 – 14000 Resistance 1 – 14170

Support 2 – 13950 Resistance2 – 14200

Exhibit 2: Nifty Bank Daily Chart

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Technical & Derivatives Report

January 05, 2021

Nifty Vs OI

12800

13000

13200

13400

13600

13800

14000

14200

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

12/15 12/17 12/21 12/24 12/28 12/30 1/1

(`000)

Openinterest Nifty

View

 We began yesterday’s session with an upside gap tad above

14100; but, decent profit booking took place in the initial two

hours to drag index towards 13950. Fortunately, due to fresh

buying interest around this psychological mark of 14000, the

benchmark index recouped all the intraday losses to conclude

the session above 14100

 FIIs were net buyers in the cash segment to the tune of Rs. 1843

crore. In index future segment, they bought worth 943 crore

with increase in open interest indicating long formations and

short unwinding in yesterday’s session

 In F&O space, we saw addition of fresh long positions in Nifty

and mixed positions were formed in case of banking index. FII's

bought equities in cash segment and formed longs in index

futures as well. Yesterday, despite sharp profit booking in the

early morning trade, put writers of 14000 and 14100 strikes

preferred holding their positions strongly and this resulted in a

V-shaped recovery. On the flip side, decent open interest

addition was visible in 14100, 14200 and 14400 call options and

we believe these are longs. Maximum open interest

concentration remains intact in 14000 put and 14200 call

options. Considering the above data points, we expect further

upside towards 14200-14250 in the near term. On the

downside, 13900-14000 is a very strong demand zone. In case

the index breaches this support, then one should reassess the

situation

mme



The Nifty futures open interest has increased by 4.27%

Bank Nifty futures open interest has increased by 2.65%

as market closed at 14132.90 levels.



The Nifty January future closed with a premium of 32.40

point against a premium of 35.35 point in last trading

session. The February series closed at a premium of 65.05

point.



The INDIA VIX increased from 19.56 to 20.03.

At the same time, the PCR-OI of Nifty increased from 1.37

to 1.52.



Few of the liquid counters where we have seen high cost

of carry are IDEA, GMRINFRA, PNB, NMDC AND

NATIONALUM.

OI Gainers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

AARTIIND 126225 42.79 1282.05 1.68

PNB 124768000 26.96 35.55 2.29

AMARAJABAT 1703000 23.94 965.75 4.33

RBLBANK 18142400 15.00 239.60 3.69

HEROMOTOCO 4029600 14.82 3043.85 -1.74

RAMCOCEM 1821550 13.81 798.35 0.42

SAIL 108775000 12.08 79.30 5.94

MUTHOOTFIN 4725000 11.33 1244.10 2.51

OI Losers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

BEL 29518400 -13.09 131.30 3.62

APOLLOTYRE 9610000 -7.95 188.60 4.42

LICHSGFIN 6518000 -7.36 381.70 1.03

HDFCLIFE 9959400 -7.05 695.85 2.50

ESCORTS 3472150 -6.13 1312.25 1.71

TATACHEM 6392000 -6.08 489.25 1.81

EICHERMOT 2339750 -5.78 2655.75 4.10

HDFCAMC 158200 -5.61 3025.60 0.63

Put-Call Ratio

SCRIP PCR-OI PCR-VOL

NIFTY 1.52 1.01

BANKNIFTY 0.73 0.93

RELIANCE 0.60 0.42

ICICIBANK 0.63 0.62

INFY 0.60 0.32

Historical Volatility

SCRIP HV

TATASTEEL 53.72

NATIONALUM 53.80

HINDALCO 60.88

CUMMINSIND 41.81

TCS 37.50

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Technical & Derivatives Report

January 05, 2021

Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.

Nifty Spot =

14132.90

FII Statistics for January 04, 2020

Detail Buy

Net Contracts

Open Interest

Sell

Value

(in Cr.)

Change

INDEX

FUTURES

4443.59

3500.89

942.70

139070

13796.88

4.72

INDEX

OPTIONS

286360.12

285553.36

806.76

677605

64984.77

14.56

STOCK

FUTURES

12443.43

11662.23

781.20

1191420

97332.45

1.65

STOCK

OPTIONS

6221.42

6303.86

(82.44) 86004

6844.69

26.35

Total 309468.56

307020.34

2448.22

2094099

182958.79

6.60

Turnover on January 04, 2020

Instrument

No. of

Contracts

Turnover

( in Cr. )

Change

(%)

Index Futures 3,59,049 31941.62 121.46

Index

Options

2,48,72,069

22,09,309.68

153.94

Stock

Futures

7,77,952 64341.10 75.22

Stock

Options

12,36,422

1,05,628.56

70.64

Total

2,72,45,492

24,11,220.96

145.28

Bull-Call Spreads

Action Strike Price Risk Reward BEP

Buy 14100 298.50

56.15 43.85 14156.15

Sell 14200 242.35

Buy 14100 298.50

107.05 92.95 14207.05

Sell 14300 191.45

Buy 14200 242.35

50.90 49.10 14250.90

Sell 14300 191.45

Bear-Put Spreads

Action Strike Price Risk Reward BEP

Buy 14100 235.70

38.90 61.10 14061.10

Sell 14000 196.80

Buy 14100 235.70

69.60 130.40 14030.40

Sell 13900 166.10

Buy 14000 196.80

30.70 69.30 13969.30

Sell 13900 166.10

Nifty Put-Call Analysis

500,000

1000,000

1500,000

2000,000

2500,000

13500 13600 13700 13800 13900 14000 14100 14200 14300 14400 14500 14600 14700 14800

Call Put

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Technical & Derivatives Report

January 05, 2021

ily

Pivot Level

s for

Nifty Constituents

Scrips

PIVOT

ADANIPORTS

486

492

502

508

517

ASIANPAINT 2,717 2,735

2,763

2,782

2,809

AXISBANK

615

620

626

631

638

BAJAJ-AUTO 3,442 3,482

3,505

3,545

3,568

BAJFINANCE 5,118 5,167

5,245

5,295

5,373

BAJAJFINSV 8,712 8,805

8,935

9,029

9,158

BPCL

380

388

392

400

405

BHARTIARTL

508

512

516

521

525

BRITANNIA 3,504 3,529

3,561

3,586

3,618

CIPLA

821

827

832

838

843

COALINDIA

135

136

137

138

139

DIVISLAB 3,809 3,836

3,875

3,902

3,941

DRREDDY 5,207 5,240

5,274

5,307

5,341

EICHERMOT 2,545 2,600

2,635

2,690

2,725

GAIL

123

127

129

131

GRASIM

926

945

956

975

986

HCLTECH

941

960

973

993

1,005

HDFCBANK 1,379 1,397

1,418

1,436

1,457

HDFCLIFE

674

685

691

702

709

HDFC 2,509 2,544

2,568

2,603

2,627

HEROMOTOCO 2,982 3,013

3,068

3,099

3,155

HINDALCO

232

251

262

269

HINDUNILVR 2,390 2,408

2,419

2,437

2,448

ICICIBANK

520

526

530

536

541

IOC

INDUSINDBK

873

886

900

912

926

INFY 1,251 1,270

1,280

1,298

1,309

ITC

210

212

214

216

218

JSW STEEL

386

394

400

408

414

KOTAKBANK 1,925 1,945

1,976

1,996

2,026

LT 1,293 1,304

1,313

1,324

1,334

M&M

719

734

742

758

766

MARUTI 7,587 7,645

7,700

7,757

7,813

NESTLEIND 18,146

18,262

18,446

18,562

18,746

NTPC

100

101

ONGC

100

POWERGRID

187

188

189

190

191

RELIANCE 1,955 1,973

1,986

2,004

2,017

SBILIFE

885

898

908

921

930

SHREECEM 23,677

23,856

24,040

24,219

24,403

SBIN

275

278

281

284

287

SUNPHARMA

589

597

603

611

617

TCS 2,901 2,970

3,010

3,080

3,120

TATAMOTORS

187

189

191

193

195

TATASTEEL

626

660

680

713

733

TECHM

964

983

994

1,013

1,024

TITAN 1,523 1,537

1,552

1,566

1,581

ULTRACEMCO 5,241 5,284

5,335

5,379

5,430

UPL

463

468

472

477

480

WIPRO

384

390

394

400

404

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Technical & Derivatives Report

January 05, 2021

Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com

For Technical Queries E-mail: technicalresearch-cso@angelbroking.com

For Derivatives Queries E-mail: derivatives.desk@angelbroking.com

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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.bhosle@angelbroking.com

Sneha Seth Derivatives Analyst sneha.seth@angelbroking.com