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January 06, 2021
Technical & Derivatives Report
Nifty
Bank Out
-
(
31722)
The banking index opened lower yesterday in tandem with the
benchmark. In the initial hour, BANKNIFTY sneaked below 31000,
but a strong buying in some of the heavyweight constituents
pulled the index higher to reclaim 31300-31400 around the
midsession. However as the second half kicked off, another bout
of buying started in banking names. As a result, the BANKNIFTY
eventually ended the session with handsome gains of 1.63%.
Since last 3-4 sessions, the banking space was on a back foot. But
yesterday single handedly not only it pulled the market in the
positive territory but also lead the Nifty beyond 14200. In our
previous commentary, we had mentioned how buying would
emerge beyond 31500 and this is exactly what we witnessed in the
latter half. The moment 31500 was crossed, the BANKNIFTY
accelerated its upward momentum. Going ahead, 32000 is the
immediate level to watch and a move beyond it would lead the
banking index towards record highs. On the flipside, previous
resistance of 31500 should now be seen as a key support.
Key Levels
Support 1 – 31500 Resistance 1 – 32000
Support 2 – 31000 Resistance 2 – 32300
Exhibit 1: Nifty Daily Chart
Sensex (48438) / Nifty (14200)
The U.S. market corrected sharply previous night on news of virus
surge and on worries over Georgia elections. This had a rub off effect
on the other global markets and as hinted by the SGX Nifty, our
markets too started the session marginally negative. However, the
damage was not much in our markets and after a couple of hours,
Nifty rebounded sharply and rallied to post new record and end the
day at 14200.
Our markets completely shrugged off the negative cues from the
global bourses yesterday and continued its winning streak to surpass
the 14200 mark. Since last few days the banking index was
consolidating within a range and just when it was required, this
sector took off to fuel this rally higher. Now, we have closed around
a crucial juncture of 14200 which is an important level as per some
retracement and extensions of the previous moves in the index.
However, if the banking space continues such momentum along with
the broader markets, then this should lead to further upmove in the
near term. On the upside, 14260 followed by 14320 would be the
next levels to watch whereas 14080 and 14000 would be seen as
immediate supports.
The Banking sector and the midcap space were buzzing yesterday
and could continue the momentum in the near term. Hence, traders
are advised to look for trading opportunities in stocks where price
upmoves are being supported by good volumes.
Key Levels
Support 1 – 14080 Resistance 1 – 14260
Support 2 – 14000 Resistance2 – 14320
Exhibit 2: Nifty Bank Daily Chart
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Technical & Derivatives Report
January 06, 2021
Nifty Vs OI
12800
13000
13200
13400
13600
13800
14000
14200
14400
,0
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 1/5
(`000)
Openinterest Nifty
View
The negative global market sentiment led to a soft opening
for our markets too. However, we witnessed good buying
interest after couple of hours and both Nifty as well as Bank
Nifty rallied to end with decent gains.
FIIs were net buyers in the cash segment to the tune of Rs.
986 crore. In index future segment, they sold worth 176
crores with decrease in open interest indicating long
unwinding in yesterday’s session.
Nifty continued its up move to form new highs and ended
at 14200. While we saw some fresh longs in Nifty, it was the
banking index which took the lead yesterday and the Bank
Nifty index saw open interest increase of more than 23
percent, indicating long build up. FII's continued to buy in
cash segment while their activity was muted in index
futures. The longs in Nifty are still intact and looking at the
build up in the banking index, we expect the momentum to
continue. Hence, it is advisable to trade with a positive bias
till the support of 14100-14000 is intact.
C
o
mme
n
t
s
The Nifty futures open interest has increased by 3.93%
Bank Nifty futures open interest has increased by 23.56%
as market closed at 14199.50 levels.
The Nifty January future closed with a premium of 18.45
point against a premium of 32.40 point in last trading
session. The February series closed at a premium of 52.4
point.
The INDIA VIX increased from 20.03 to 20.46.
At the same time, the PCR-OI of Nifty increased from 1.52
to 1.62.
Few of the liquid counters where we have seen high cost
of carry are IDEA, ADANIENT, MARICO, PNB AND
GODREJPROP.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
AARTIIND 259675 105.72 1337.20 4.25
MGL 1653000 22.44 1096.45 1.37
HDFCAMC 178800 13.02 3092.10 2.33
NAUKRI 782500 12.43 5494.55 13.53
LALPATHLAB 93250 11.68 2386.05 -0.74
INDUSINDBK 17687700 11.17 921.65 2.82
MINDTREE 1421600 10.79 1713.85 1.38
WIPRO 30992000 10.17 406.30 2.47
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
HDFCLIFE 8564600 -14.00 713.75 2.51
CHOLAFIN 4942500 -10.05 437.25 -0.20
TCS 5816700 -8.74 3093.00 1.60
TATASTEEL 38472700 -7.01 680.55 -1.86
HINDALCO 27098600 -6.94 250.30 -1.63
LUPIN 7671250 -6.56 1039.95 1.26
CADILAHC 9242200 -6.12 485.85 -0.20
BALKRISIND 1696000 -5.92 1681.45 0.06
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.62 0.93
BANKNIFTY 1.17 0.80
RELIANCE 0.58 0.40
ICICIBANK 0.55 0.37
INFY 0.57 0.33
Historical Volatility
SCRIP HV
NAUKRI 55.46
AXISBANK 65.05
AARTIIND 51.09
APOLLOHOSP 51.43
INDUSTOWER 70.16
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Technical & Derivatives Report
January 06, 2021
Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.
Nifty Spot =
14199.50
FII Statistics for January 05, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
3193.03
3369.49
(176.46) 136691
13681.96
(1.71)
INDEX
OPTIONS
293099.19
295029.77
(1930.58) 692905
68819.52
2.26
STOCK
FUTURES
11845.92
11957.27
(111.35) 1193668
97971.49
0.19
STOCK
OPTIONS
5829.28
5896.54
(67.26) 95318
7651.61
10.83
Total 313967.42
316253.07
(2285.65) 2118582
188124.58
1.17
Turnover on January 05, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 3,57,842 31870.14 -0.22
Index
Options
2,90,39,452
25,69,769.31
16.32
Stock
Futures
7,72,137 64444.40 0.16
Stock
Options
12,33,536
1,05,951.33
0.31
Total
3,14,02,967
27,72,035.18
14.96
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 14200 270.05
52.90 47.10 14252.90
Sell 14300 217.15
Buy 14200 270.05
101.70 98.30 14301.70
Sell 14400 168.35
Buy 14300 217.15
48.80 51.20 14348.80
Sell 14400 168.35
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 14200 255.30
39.00 61.00 14161.00
Sell 14100 216.30
Buy 14200 255.30
73.45 126.55 14126.55
Sell 14000 181.85
Buy 14100 216.30
34.45 65.55 14065.55
Sell 14000 181.85
Nifty Put-Call Analysis
,0
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 06, 2021
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
486
493
499
505
511
ASIANPAINT 2,704 2,749
2,777
2,822
2,849
AXISBANK
600
632
650
682
700
BAJAJ-AUTO 3,461 3,477
3,491
3,507
3,521
BAJFINANCE 4,974 5,046
5,135
5,208
5,297
BAJAJFINSV 8,643 8,732
8,826
8,915
9,009
BPCL
386
389
392
395
398
BHARTIARTL
508
511
514
517
520
BRITANNIA 3,528 3,539
3,552
3,563
3,576
CIPLA
814
820
832
839
851
COALINDIA
133
134
135
136
138
DIVISLAB 3,766 3,804
3,842
3,880
3,919
DRREDDY 5,174 5,230
5,284
5,340
5,394
EICHERMOT 2,590 2,632
2,659
2,701
2,728
GAIL
124
127
128
131
132
GRASIM
935
948
960
973
985
HCLTECH
956
974
985
1,002
1,013
HDFCBANK 1,400 1,414
1,422
1,435
1,444
HDFCLIFE
682
698
706
722
731
HDFC 2,541 2,596
2,628
2,683
2,715
HEROMOTOCO 3,014 3,041
3,058
3,084
3,101
HINDALCO
244
247
250
253
256
HINDUNILVR 2,386 2,418
2,438
2,470
2,489
ICICIBANK
516
527
533
544
550
IOC
91
92
93
94
94
INDUSINDBK
866
894
911
938
955
INFY 1,265 1,280
1,289
1,304
1,313
ITC
209
210
212
213
214
JSW STEEL
387
391
396
400
405
KOTAKBANK 1,924 1,942
1,953
1,971
1,982
LT 1,287 1,297
1,305
1,315
1,323
M&M
721
731
739
749
757
MARUTI 7,551 7,603
7,638
7,690
7,725
NESTLEIND 18,143
18,351
18,485
18,693
18,827
NTPC
96
97
98
98
99
ONGC
93
94
95
96
97
POWERGRID
185
186
188
190
191
RELIANCE 1,941 1,954
1,969
1,981
1,996
SBILIFE
887
896
908
917
929
SHREECEM 23,434
23,665
23,932
24,163
24,430
SBIN
275
278
280
284
286
SUNPHARMA
595
599
604
608
613
TCS 3,008 3,050
3,082
3,125
3,157
TATAMOTORS
182
188
191
196
200
TATASTEEL
664
672
683
691
702
TECHM
984
994
1,001
1,011
1,018
TITAN 1,528 1,549
1,563
1,585
1,598
ULTRACEMCO 5,192 5,267
5,320
5,394
5,448
UPL
464
468
470
474
476
WIPRO
387
397
403
413
420
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Technical & Derivatives Report
January 06, 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