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Technical & Derivatives Report
June 05, 2020
Nifty Bank Outlook - (20390)
Post the sharp upmove in the last few sessions, Bank Nifty retraced
yesterday and traded with a negative bias throughout the day to
end with a loss of over 500 points.
In Wednesday's session, the index had formed a 'Gravestone Doji'
pattern on the daily chart which is termed as a reversal pattern.
The follow up correction yesterday post the formation of the
mentioned pattern does not augur well and has applied brakes to
the momentum. On pullback move, the resistance for the index is
seen around 21127. While there could be intraday pullback move,
index could again see some underperformance in the near term.
Hence, traders are advised to avoid aggressive bets in this space
and be stock specific from a swing trading perspective. The
immediate support for the index are placed around 20120 and
19550.
Key Levels
Support 1 – 20120 Resistance 1 – 21000
Support 2 – 19550 Resistance 2 – 21127
Exhibit 1: Nifty Daily Chart
Sensex (33981) / Nifty (10029)
Wednesday’s tail end correction was followed by a flat to negative
opening yesterday, as indicated by the SGX Nifty. In the initial
trade, the Nifty tried heading towards 10100, but this short spurt
immediately got sold into. In fact, the selling aggravated across
the board led by the banking conglomerates once again to test
the sub-9950 levels on Nifty. Fortunately, the mentioned support
of 9900 acted as a sheet anchor and in the last couple of hours of
trade, Nifty gave a smart recovery to reclaim the 10000 mark on
a closing basis.
Yesterday, although we saw some follow through selling,
fortunately the damage was not so big to dent the recent
optimistic rally. But if we observe the overall action meticulously,
we could see complete divergence in two most tradable indices,
Nifty and Bank Nifty. The Nifty was in a process of recovering in
the last couple of hours on the weekly expiry day (courtesy to IT
space); but on the other hand, the Bank Nifty had its own plans.
The banking index was completely unmoved and eventually
ended with a decent cut. In our sense, whatever decline or profit
booking we witnessed in the last two days, it was necessary and
would be construed as a healthy sign if we have to extend the
recent rally. For Nifty, momentum traders holding longs should
now maintain a strict stop loss below 9900, in fact the same can
be used to create fresh positions as well. As long as we are holding
this support, the possibility of extending this rally towards 10150-
10200 or beyond, cannot be ruled out.
Exhibit 2: Nifty Bank Daily Chart
As we alluded in the previous article, the low hanging fruit is already
gone, and the easy trade is no more now. Market is going to test the
patience, emotions of traders from hereon, because the move is not
going to be as smooth as it has been in the recent past. Hence, one
should avoid aggressive trades and rather wait for apt levels to reach
to enter into a trade. Moreover, recently the stock specific trades
were also quite easy to spot; but now there also one needs to be
very fussy, because we have started witnessing a lot of whipsaws.
Key Levels
Support 1 – 9950 Resistance 1 – 10150
Support 2 – 9900 Resistance 2 – 10200
Technical & Derivatives Report
June 05, 2020
Nifty Vs OI
8200
8400
8600
8800
9000
9200
9400
9600
9800
10000
10200
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
5/19 5/20 5/21 5/22 5/26 5/27 5/28 5/29 6/1 6/2 6/3 6/4
(`000)
Openinterest Nifty
V
iew
s
Yesterday, our markets witnessed a flat opening which
was followed by volatile moves. Nifty eventually ended
with loss of 0.32% at 10029.
FIIs were net buyers in the cash market segment to the
tune of Rs. 2905 crores. In index futures, they sold worth
1266 crores with decrease in open interest indicating
long unwinding in yesterday’s session.
In yesterday's session, both the indices corrected with
fall in open interest indicating unwinding of long
positions. FII's too squared of some of their long
positions in index futures. As per the options data,
10000 followed by 9800 are the immediate supports
whereas resistance is seen around 10200. Traders are
advised to follow a stock specific approach at the
moment.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 3.39%
Bank Nifty futures open interest has decreased by 6.97%
as market closed at 10029.10 levels.
The Nifty June future closed with a discount of 11.45
point against a premium of 10.25 point in last trading
session. The July series closed at a discount of 15.7 points.
The INDIA VIX has decreased from 30.04 to 29.69
At the same time, the PCR-OI of Nifty decreased from
1.59 to 1.36.
Few of the liquid counters where we have seen high cost
of carry are IDEA, INFRATEL, WIPRO, BHEL and NCC.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
IDEA 343742000 20.82 8.60 7.41
JINDALSTEL 18745000 17.89 137.10 7.67
TATAPOWER 57960000 13.34 42.50 2.40
EXIDEIND 6720400 11.17 171.35 1.42
ZEEL 30340500 11.09 205.60 5.23
CANBK 11311000 9.29 97.35 0.72
SRF 664000 8.76 3797.85 4.14
AMARAJABAT 1523600 8.72 660.55 1.81
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BATAINDIA 1408000 -14.41 1394.70 -0.94
SRTRANSFIN 2887200 -13.40 613.00 -1.04
MUTHOOTFIN 1388250 -9.04 910.75 -0.86
BOSCHLTD 143160 -8.07 10957.75 -0.50
GODREJPROP 431600 -7.65 790.25 -4.03
M&MFIN 13582800 -7.42 148.80 -3.66
TATACHEM 1941800 -6.81 315.50 0.51
RAMCOCEM 803100 -6.77 620.00 -1.28
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.36 0.96
BANKNIFTY 0.81 0.96
RELIANCE 0.91 0.46
ICICIBANK 0.75 0.92
INFY 0.63 0.41
Historical Volatility
SCRIP HV
INDIGO 56.56
ASIANPAINT 43.30
VEDL 70.18
PVR 62.46
TECHM 50.91
Technical & Derivatives Report
June 05, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (June Series) are given as an information and not as a recommendation.
Nifty Spot =
10029.10
FII Statistics for June 04, 2020
Detail Buy Sell Net
Open Interest
Contracts
Value
(in Cr.)
Change
(%)
INDEX
FUTURES
6367.05
7632.87
(1265.82) 114174
7711.91
(10.64)
INDEX
OPTIONS
297477.25
296248.93
1228.32
570225
39149.37
(18.49)
STOCK
FUTURES
19112.04
18389.84
722.20
1514734
80314.30
(0.87)
STOCK
OPTIONS
4262.90
4234.16
28.74
67729
3884.29
7.49
Total 327219.24
326505.80
713.44
2266862
131059.87
(6.27)
Turnover on June 04, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 7,16,991 37771.88 -1.10
Index Options 3,36,75,546
20,71,877.10 31.47
Stock Futures 10,78,718 57952.93 1.63
Stock Options 9,93,995 58383.79 6.86
Total 3,64,65,250
22,25,985.70 28.99
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 10000 271.70
51.10 48.90 10051.10
Sell 10100 220.60
Buy 10000 271.70
95.55 104.45 10095.55
Sell 10200 176.15
Buy 10100 220.60
44.45 55.55 10144.45
Sell 10200 176.15
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 10000 257.45
41.55 58.45 9958.45
Sell 9900 215.90
Buy 10000 257.45
78.00 122.00 9922.00
Sell 9800 179.45
Buy 9900 215.90
36.45 63.55 9863.55
Sell 9800 179.45
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
9500 9600 9700 9800 9900 10000 10100 10200 10300 10400 10500 10600 10700 10800
Call Put
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Technical & Derivatives Report
June 05, 2020
Daily Pivot Levels for Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
335
337
340
342
345
ASIANPAINT 1,568 1,601
1,660
1,693
1,753
AXISBANK
378
386
400
408
422
BAJAJ-AUTO 2,725 2,771
2,802
2,848
2,879
BAJFINANCE 2,171 2,242
2,348
2,419
2,525
BAJAJFINSV 4,912 5,025
5,180
5,293
5,448
BPCL
331
344
352
365
372
BHARTIARTL
533
553
56
9
589
605
INFRATEL
209
214
219
224
229
BRITANNIA 3,343 3,397
3,476
3,530
3,609
CIPLA
634
647
656
669
678
COALINDIA
137
139
141
142
144
DRREDDY 3,904 3,951
4,004
4,052
4,105
EICHERMOT 16,697
16,985
17,343
17,630
17,988
GAIL
95
96
97
99
100
GRASIM
572
588
600
616
628
HCLTECH
549
564
574
589
599
HDFCBANK
963
982
1,011
1,030
1,058
HDFC 1,715 1,739
1,784
1,809
1,853
HEROMOTOCO
2,233
2,281
2,311
2,360
2,390
HINDALCO
136
139
142
145
148
HINDUNILVR 2,092 2,106 2
,119
2,134
2,147
ICICIBANK
335
341
352
359
370
IOC
83
84
86
87
88
INDUSINDBK
388
402
418
432
448
INFY
693
700
705
712
717
ITC
192
196
199
203
207
JSW STEEL
187
189
192
195
198
KOTAKBANK 1,299 1,316
1,348
1,366
1,398
LT
903
91
7
942
956
982
M&M
461
470
478
487
495
MARUTI 5,513 5,601
5,661
5,749
5,809
NESTLEIND 16,899
17,048
17,297
17,446
17,696
NTPC
92
93
94
96
97
ONGC
83
84
85
86
87
POWERGRID
163
166
168
171
173
RELIANCE 1,522 1,551
1,570
1,599
1,619
SHREECEM 20,642
21,020
21,445
21,822
22,247
SBIN
168
171
174
177
181
SUNPHARMA
462
479
488
505
514
TCS 2,026 2,059
2,079
2,112
2,133
TATAMOTORS
94
96
99
101
104
TATASTEEL
311
316
319
324
327
TECHM
545
564
574
593
604
TITAN
929
9
50
964
985
999
ULTRACEMCO 3,663 3,733
3,802
3,873
3,941
UPL
409
416
424
431
439
VEDANTA
93
99
102
108
111
WIPRO
206
211
215
221
225
ZEEL
180
193
200
213
221
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Technical & Derivatives Report
June 05, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.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