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Technical & Derivatives Report

August 06, 2020

Nifty

Bank Out

look

(

21510

)

Following the positive momentum from the previous session, the

bank index started on a positive note however it failed to hold on

the higher levels and slipped lower to end flat tad above 21500

levels.

On Tuesday, Bank Nifty defended the key support of swing low

at 21000 and triggered a smart bounce back. However, ahead of

the key RBI policy, the bank index witnessed a volatile session in

yesterday's session. Going ahead, we sense as long 21000 levels

are defended we are likely to see dips getting bought into. In such

a scenario, 21350 and 21200 levels are likely to act as immediate

intraday support. On the flip side, immediate resistance is placed

around 21750 and 22000 levels. On the policy day, traders are

advised to have a stock-specific approach from the basket with

proper exit set up.

Key Levels

Support 1 – 21350 Resistance 1 – 21750

Support 2 – 21200 Resistance 2 – 22000

Exhibit 1: Nifty Daily Chart

Sensex (37663) / Nifty (11102)

We had a v-shaped recovery on Tuesday to recoup Monday’s entire

losses. Since the broader market was on a recovery mode; courtesy

to decent rebound in banking stocks, the stage was all set for a

positive start yesterday. Very much in-line with this, our markets

opened higher and then continued it’s move northwards to surpass

the 11200 mark in initial hours. However, all of a sudden, the Nifty

took a complete nosedive not only to wipe off gains but also to

sneak inside the negative terrain. After this, the market kept gyrating

in a band of 90 points with some volatility to conclude on a flat note

at 11100.

Yesterday’s wild swings had nothing to do with global peers;

because they have been trading firmly in the green since morning.

In fact, traders were completely clueless about such wild swings.

May be, this indecision has something to do with the RBI monetary

policy slated today. Now as far as levels are concerned, 11020

followed by 10900 remains to be an immediate support zone and

on the upside, 11160 – 11235 are the levels to watch out for. As of

now, there is no hint of the market experiencing a big bang move

on the policy day but in case if it happens, then a directional move

is possible only outside the range of 11235 – 10900.

Key Levels

Support 1 – 11000 Resistance 1 – 11160

Support 2 – 10900 Resistance 2 – 11235

Exhibit 2: Nifty Bank Daily Chart

Although markets were a bit lethargic in the latter half, the action

was not at all missing in individual stocks. In fact, we would rather

rate it as one of the best days for stock specific moves in the last few

days. The Metal and Auto counters had spectacular moves along

with broader market participation. In fact, taking a glance at the Nifty

Midcap 50 index, further up move of nearly 2% would lead to a

strong breakout in this space. Hence, even if the benchmark index

consolidates, traders should not miss stupendous moves in

individual stocks especially from Midcap universe.

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August 06, 2020

Nifty Vs OI

10600

10700

10800

10900

11000

11100

11200

11300

11400

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

7/207/217/227/237/247/277/287/297/307/31 8/3 8/4 8/5

(`000)

Openinterest Nifty

View



Post a positive momentum in the first hour of the trade,

the index retraced back and gave up the intraday gains

to end almost on a flat note.



FIIs were net sellers in the cash market segment to the

tune of Rs. 60 crores. In index futures, they sold worth

528 crores with decrease in open interest indicating

long unwinding in yesterday’s session



Both the indices, Nifty and Bank Nifty witnessed

unwinding of positions ahead of the RBI policy and

weekly expiry. FII's unwound some of their long

positions in the index futures segment. In options

segment, 11200 and 11300 call options added good

amount of open interest whereas 11100 and 11000

puts added some OI. The options data indicates a

broader range of 11000-11200 for the weekly expiry

day. Traders are advised to trade with a positive bias

and look for buying opportunities in intraday declines.

mme



The Nifty futures open interest has decreased by 5.49%

Bank Nifty futures open interest has decreased by 7.86%

as market closed at 11101.65 levels.



The Nifty August future closed with a premium of 16.35

point against a premium of 6.8 point in last trading

session. The September series closed at a premium of

22.35 point.



The INDIA VIX has decreased from 23.81 to 23.57

At the same time, the PCR-OI of Nifty decreased from

1.42 to 1.26.



Few of the liquid counters where we have seen high cost

of carry are NATIONALUM, GMRINFRA, GAIL, SAIL AND

COALINDIA.

OI Gainers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

ITC 87824000 48.26 192.80 -0.08

SAIL 54758000 33.06 36.75 6.32

MFSL 2519400 30.33 549.40 2.26

MUTHOOTFIN 3927000 17.95 1257.90 -2.20

SRTRANSFIN 3392362 15.96 642.30 -1.75

FEDERALBNK 61191500 15.39 52.35 0.00

HINDALCO 31497500 13.48 175.75 8.01

ASHOKLEY 49248000 12.85 49.00 -1.20

OI Losers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

CHOLAFIN 6230000 -11.51 204.40 1.80

GODREJPROP 473850 -7.95 903.00 -3.33

AXISBANK 52587600 -7.34 434.95 1.47

TORNTPHARM 1780000 -5.32 2857.30 1.10

AMARAJABAT 1263000 -4.89 716.20 0.79

INFRATEL 12560800 -4.86 191.05 1.27

GODREJCP 4313000 -4.64 677.20 -2.41

BRITANNIA 1271400 -4.64 3850.05 0.75

Put-Call Ratio

SCRIP PCR-OI PCR-VOL

NIFTY 1.26 0.98

BANKNIFTY 0.75 0.91

RELIANCE 0.71 0.48

ICICIBANK 0.49 0.43

INFY 0.73 0.61

Historical Volatility

SCRIP HV

HINDALCO 67.23

TATASTEEL 57.86

NATIONALUM 54.91

BATAINDIA 49.09

SAIL 69.65

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Technical & Derivatives Report

August 06, 2020

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

Nifty Spot =

11101.65

FII Statistics for August 05, 2020

Detail Buy

Sell Net

Open Interest

Contracts

Value

(in Cr.)

Change

(%)

INDEX

FUTURES

3478.16

4006.22

(528.06) 94932

7234.92

(8.72)

INDEX

OPTIONS

297581.46

298301.60

(720.14) 677760

51547.98

7.45

STOCK

FUTURES

14554.74

14922.06

(367.32) 1271641

88022.24

1.20

STOCK

OPTIONS

6757.88

6712.16

45.72

62886

4218.26

8.44

Total 322372.24

323942.04

(1569.80) 2107219

151023.40

2.82

Turnover on August 05, 2020

Instrument

No. of

Contracts

Turnover

( in Cr. )

Change

(%)

Index Futures 5,18,975 33874.19 5.27

Index Options 2,94,24,155

19,93,437.85 56.80

Stock Futures 8,59,559 62274.99 3.33

Stock Options 10,66,190 84597.79 2.09

Total 3,18,68,879

21,74,184.82 50.29

Bull-Call Spreads

Action Strike Price Risk Reward BEP

Buy 11100 237.90

50.40 49.60 11150.40

Sell 11200 187.50

Buy 11100 237.90

91.95 108.05 11191.95

Sell 11300 145.95

Buy 11200 187.50

41.55 58.45 11241.55

Sell 11300 145.95

Bear-Put Spreads

Action Strike Price Risk Reward BEP

Buy 11100 219.70

41.90 58.10 11058.10

Sell 11000 177.80

Buy 11100 219.70

76.80 123.20 11023.20

Sell 10900 142.90

Buy 11000 177.80

34.90 65.10 10965.10

Sell 10900 142.90

Nifty Put-Call Analysis

500,000

1000,000

1500,000

2000,000

2500,000

3000,000

3500,000

10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000

Call Put

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Daily Pivot Levels for Nifty Constituents

Scrips

PIVOT

ADANIPORTS

308

317

323

333

339

ASIANPAINT 1,694 1,705

1,724

1,735

1,753

AXISBANK

425

430

438

443

452

BAJAJ-AUTO 2,942 2,976

3,005

3,039

3,069

BAJFINANCE 3,198 3,230

3,280

3,312

3,362

BAJAJFINSV 6,102 6,172

6,258

6,329

6,415

BPCL

400

405

410

415

420

BHARTIARTL

541

550

555

564

569

INFRATEL

187

189

191

193

195

BRITANNIA 3,805 3,827

3,850

3,873

3,896

CIPLA

709

715

723

729

737

COALINDIA

127

128

129

130

131

DRREDDY 4,532 4,567

4,616

4,651

4,700

EICHERMOT 20,687

21,323

21,796

22,431

22,904

GAIL

GRASIM

611

622

633

644

655

HCLTECH

669

679

691

700

712

HDFCBANK

999

1,013

1,034

1,049

1,070

HDFC

594

599

609

614

624

HEROMOTOCO

1,740

1,758

1,785

1,803

1,830

HINDALCO 2,635 2,665

2,703

2,733

2,771

HINDUNILVR

158

167

172

181

186

ICICIBANK 2,166 2,180

2,195

2,209

2,224

IOC

345

349

354

358

364

INDUSINDBK

INFY

480

487

496

502

512

ITC

925

935

948

958

971

JSW STEEL

190

191

193

194

196

KOTAKBANK

225

230

233

238

241

LT 1,305 1,320

1,336

1,351

1,367

M&M

913

920

927

933

941

MARUTI

596

605

612

622

629

NESTLEIND 6,284 6,405

6,501

6,623

6,719

NTPC 16,352

16,428

16,536

16,612

16,720

ONGC

POWERGRID

RELIANCE

174

175

176

178

179

SHREECEM 2,069 2,098

2,147

2,176

2,225

SBIN 21,203

21,653

21,902

22,352

22,601

SUNPHARMA

187

189

193

195

199

TCS

520

525

531

536

542

TATAMOTORS 2,224 2,242

2,271

2,289

2,318

TATASTEEL

109

112

115

118

121

TECHM

364

380

389

405

414

TITAN

632

640

651

659

670

ULTRACEMCO 1,063 1,084

1,099

1,121

1,136

UPL 3,960 4,001

4,055

4,096

4,150

VEDANTA

442

448

458

463

473

WIPRO

273

276

280

283

287

ZEEL

139

142

145

148

151

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Technical & Derivatives Report

August 06, 2020

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

For Technical & Derivatives Queries E-mail: technicalresearch-cso@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