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January 19
, 2021
Technical & Derivatives Report
Nifty
look
-
(
31812
)
After Friday’s hint of profit booking, markets started the new week
marginally in the green. However, within few minutes of trade,
Nifty entered a negative territory. In the first half, BANKNIFTY was
showing some outperformance as it was reluctant to fall, mainly
due to some sturdy trade in banking giant HDFC BANK after
posting it’s quarterly numbers over the weekend. This resilience
from banking index didn’t last too long, because some of the
heavyweight banks started to take a toll. Eventually, BANKNIFTY
ended with a decent correction of nearly one and half a percent.
Yesterday in the first half, banking index outperformed Nifty but
in the latter half, the sell off was mainly led by banks after a decent
rebound around the midsession. With this it is comfortably below
32000, indicating some weakness. For the coming session, we
expect the weakness to persist and hence bounce back towards
32000-32200 is likely to get sold into. On the other hand, the
correction is likely to extend towards next key support zone of
31500-31300.
Key Levels
Support 1 – 31500 Resistance 1 – 32000
Support 2 – 31300 Resistance 2 – 32200
Exhibit 1: Nifty Daily Chart
Se
nsex
(
48564
)
/ Nifty
(
14281
)
Nifty started the session around the previous week’s close but right
from the word go, Nifty witnessed some selling pressure and by
noon it breached the 14300 mark. The index then recovered from
the low but that intraday pullback got sold into, and it marked a low
of 14222 during closing. The Nifty index registered a loss of over a
percent at close while the Bank Nifty corrected by over 400 points
after showing some resilience in the first hour of trade.
Nifty had already indicated signs of some correction in Friday’s
session as it closed below its 5 day EMA. The index breached its
support of 14380 in the first hour of the trade which confirmed an
extension of this profit booking and then we witnessed a good sell-
off in the broader markets. The Bank Nifty showed some relative
strength in the first hour of the trade, but it then synced with the
market move and corrected for the rest of the session. The Nifty
Midcap index resisted around some important retracement level last
week, and thus this space too witnessed a decent profit booking in
yesterday’s session. If we look at the broader picture, this correction
definitely seems to be a corrective phase within an uptrend which
would provide good opportunities to buy stocks on dips. However,
from an intraday or a short term perspective, the volatility is likely to
be high as some more profit booking could not be ruled out. Hence,
traders should use intraday pullbacks to exit longs.
The U.S. Dollar index has seen a sharp correction in the last few
months and the index chart seems to be inversely correlated to the
same. In last couple of sessions, we have seen a pullback move there
and thus, this too seems to be leading to profit booking in equity
markets. The immediate supports for the Nifty are placed around
14180 followed by 14130 while 14400 would be the immediate
resistance.
Key Levels
Support 1 – 14130 Resistance 1 – 14400
Support 2 – 14000 Resistance2 – 14460
Exhibit 2: Nifty Bank Daily Chart
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Technical & Derivatives Report
January 19
, 2021
Nifty Vs OI
13700
13800
13900
14000
14100
14200
14300
14400
14500
14600
14700
12,000
12,500
13,000
13,500
14,000
14,500
15,000
15,500
1/1 1/5 1/7 1/11 1/13 1/15
(`000)
Openinterest Nifty
View
The indices continued its corrective phase and breached the
14300 mark to end below it. The border markets too
corrected and all the sectoral indices ended in the red.
FIIs were net buyers in the cash segment to the tune of
Rs. 651 crore. In index future segment, they sold worth Rs.
267 crores with decrease in open interest indicating long
unwiniding in yesterday’s session.
Nifty corrected due to unwinding of some existing long
positions while we witnessed formation of fresh shorts in
the Bank Nifty. FII's preferred to unwind some of their long
positions in the index futures. In Options segment, 14300-
14400 call options saw addition of open interest, indicating
call writers active in these strikes, whereas put writers were
seen unwinding their positions. The above data hints at a
resistance in the range of 14300-14400 and hence, pullback
moves should be used to lighten up longs. On the flip side,
14200 is the immediate support which if breached, then we
could see further extension of the ongoing correction.
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 3.03%
Bank Nifty futures open interest has increased by 9.92%
as market closed at 14281.30 levels.
The Nifty January future closed with a premium of 5.95
point against a premium of 24.80 point in last trading
session. The February series closed at a premium of 34.80
point.
The INDIA VIX increased from 24.10 to 24.39.
At the same time, the PCR-OI of Nifty decreased from
1.19 to 1.12.
Few of the liquid counters where we have seen high cost
of carry are MOTHERSUMI, COFORGE, SUNTV, ICICIGI,
COLPAL AND NESTLEIND.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
RAMCOCEM 1526600 9.51 789.35 -3.92
L&TFH 36569800 9.28 99.55 -5.94
APOLLOTYRE 14255000 8.20 179.20 -2.47
IOC 55705000 7.50 98.30 -3.05
ASIANPAINT 6104700 7.12 2588.25 -0.11
PETRONET 17913000 6.66 243.25 -6.46
ASHOKLEY 40356000 6.66 114.30 -4.38
HDFCAMC 387600 5.90 3185.70 -1.90
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
BOSCHLTD 124600 -15.70 14514.25 -1.98
CUMMINSIND 2343600 -10.25 594.10 -1.52
SAIL 163343000 -8.91 65.95 -6.38
HDFCBANK 29587250 -8.60 1483.10 0.96
TATAMOTORS 71728800 -7.87 245.95 -5.85
GAIL 28663900 -7.75 137.90 -0.77
ICICIPRULI 4366500 -7.62 506.90 0.99
IDEA 965160000 -7.31 13.00 -5.45
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.12 0.82
BANKNIFTY 0.73 0.99
RELIANCE 0.49 0.32
ICICIBANK 0.54 0.55
INFY 0.34 0.34
Historical Volatility
SCRIP HV
PETRONET 42.75
UPL 57.38
TATASTEEL 53.73
POWERGRID 35.71
TATACHEM 44.60
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Technical & Derivatives Report
January 19
, 2021
Note: Above mentioned Bullish or Bearish Spreads in Nifty (January Series) are given as an information and not as a recommendation.
Nifty Spot =
14281.30
FII Statistics for January 18, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
4385.51
4652.74
(267.23) 118874
11899.30
(4.59)
INDEX
OPTIONS
365127.25
364018.64
1108.61
858461
84615.06
2.63
STOCK
FUTURES
15247.32
13920.68
1326.64
1219334
99113.36
(0.59)
STOCK
OPTIONS
12528.46
12662.00
(133.54) 185960
15186.37
1.87
Total 397288.54
395254.06
2034.48
2382629
210814.09
0.53
Turnover on January 18, 2020
Instrume
nt
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 4,25,349 39261.51 0.95
Index Options 2,66,17,450
24,54,777.17 24.48
Stock Futures 9,11,614 76355.94 -7.61
Stock Options 21,69,729 1,87,404.44 2.85
Total 3,01,24,142
27,57,799.06 21.18
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 14300 203.80
51.65 48.35 14351.65
Sell 14400 152.15
Buy 14300 203.80
92.50 107.50 14392.50
Sell 14500 111.30
Buy 14400 152.15
40.85 59.15 14440.85
Sell 14500 111.30
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 14300 209.55
39.70 60.30 14260.30
Sell 14200 169.85
Buy 14300 209.55
75.20 124.80 14224.80
Sell 14100 134.35
Buy 14200 169.85
35.50 64.50 14164.50
Sell 14100 134.35
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
3500,000
13500 13600 13700 13800 13900 14000 14100 14200 14300 14400 14500 14600 14700 14800
Call Put
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January 19
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Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
489
502
517
531
546
ASIANPAINT 2,523 2,556
2,588
2,620
2,652
AXISBANK
637
6
47
661
671
685
BAJAJ-AUTO 3,449 3,506
3,562
3,620
3,675
BAJFINANCE 4,568 4,644
4,762
4,838
4,956
BAJAJFINSV 8,059 8,207
8,421
8,569
8,784
BPCL
395
402
409
417
424
BHARTIARTL
572
580
591
599
610
BRITANNIA 3,526 3,567
3,616
3,657
3,706
CIPLA
778
790
808
820
839
COALINDIA
132
136
140
143
147
DIVISLAB 3,484 3,525
3,592
3,633
3,700
DRREDDY 4,905 4,979
5,108
5,182
5,311
EICHERMOT 2,769 2,821
2,867
2,919
2,965
GAIL
131
134
138
142
146
GRASIM
968
984
1,007
1,022
1,045
HCLTECH
960
971
988
999
1,016
HDFCBANK 1,448 1,466
1,484
1,502
1,520
HDFCLIFE
677
686
697
706
718
HDFC 2,491 2,529
2,588
2,626
2,685
HEROMOTOCO 3,019 3,091
3,154
3,226
3,290
HINDALCO
232
238
246
251
260
HINDUNILVR 2,289 2,311
2,343
2,365
2,396
ICICIBANK
517
525
537
545
556
IOC
95
97
99
101
104
INDUSINDBK
903
918
939
954
975
INFY 1,285 1,299
1,319
1,333
1,353
ITC
211
216
219
223
226
JSW STEEL
366
374
384
393
403
KOTAKBANK 1,819 1,833
1,853
1,867
1,886
LT 1,311 1,324
1,339
1,351
1,366
M&M
785
797
809
821
833
MARUTI 7,588 7,709
7,867
7,988
8,145
NESTLEIND 17,237
17,434
17,754
17,951
18,271
NTPC
94
96
98
100
103
ONGC
92
95
98
100
104
POWERGRID
190
193
197
200
205
RELIANCE 1,894 1,9
39
1,968
2,013
2,042
SBILIFE
870
882
894
906
918
SHREECEM 23,162
23,505
23,952
24,295
24,742
SBIN
282
288
298
305
315
SUNPHARMA
560
571
589
600
618
TCS 3,153 3,187
3,222
3,257
3,291
TATAMOTORS
229
237
250
259
271
TATASTEEL
629
648
6
78
697
728
TECHM
979
989
1,001
1,011
1,023
TITAN 1,442 1,473
1,491
1,522
1,540
ULTRACEMCO 5,256 5,321
5,391
5,456
5,527
UPL
507
534
551
578
595
WIPRO
419
425
435
441
451
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January 19
, 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: derivat[email protected]
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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