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July 20, 2021

Technical & Derivatives Report

Nifty Bank Outlook

5079

)

The way we closed on Friday, the stage was very much set for

a good up move this week. But there was always a fear of

global uncertainty and we had mentioned a point also, if there

is no aberration on the global front, BANKNIFTY was poised to

surpass the sturdy wall of 36000. Unfortunately, the

depressing cues from global peers led to a massive gap down

opening in our market and within few minutes, the index was

at 35000. There was some recovery seen after reaching there

in the opening hour, but this eventually got sold into.

The BANKNIFTY ended the session tad above 35000 by

shedding almost couple of percent from the Friday’s close.

Taking a glance at the hourly chart, 34800 is to be considered

as a ‘Make or Break level’. A sustainable breach of this support

would reinforce the selling in the banking space. In this

scenario, we may see retesting of 34600 – 34500 levels. Key

indices are standing at crucial points now. A slight push in the

downward direction from hereon will lead to short term

correction in the market. Let’s see how things pan out; but one

needs to be very light on positions and avoid any kind of

undue risk at this moment. On the higher side, 35300 – 35500

would act as immediate hurdles.

Key Levels

Support 1 – 34800 Resistance 1 – 35300

Support 2 – 34600 Resistance 2 – 35500

Exhibit 1: Nifty Daily Chart

Exhibit 2: Nifty Bank Daily Chart

Sensex (52553) / Nifty (15752)

Nifty started the day with a gap down owing to negative global

cues. The banking heavyweights corrected sharply which led to

negative biasness in both Nifty and Bank Nifty throughout the

day. The benchmark ultimately ended the session around 15750

with a loss of over a percent.

Our markets had closed firmly on Friday and it seemed that the

index was all set to march towards the 16000 mark. However,

the global markets spoiled the sentiment and thus we had a gap

down opening. To add to this, the banking space traded with a

negative bias led by the heavyweight HDFC Bank post its

quarterly numbers. However, although the indices were under

pressure, the focus was on the broader markets where stock

specific momentum was seen. With yesterday’s move, we are

back into the consolidation phase with supports for Nifty placed

at 15750 and 15630. On the flipside, 15850-15900 would be

seen as immediate resistance which needs to be surpassed for a

resumption of the momentum.

Till this volatility settles and the momentum resumes, traders

are advised to focus on stock specific moves and avoid

aggressive overnight positions.

Key Levels

Support 1 – 15700 Resistance 1 – 15850

Support 2 – 15630 Resistance 2 – 15900

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Technical & Derivatives Report

July 20, 2021

Nifty Vs OI

15550

15600

15650

15700

15750

15800

15850

15900

15950

16000

92,000

94,000

96,000

98,000

100,000

102,000

104,000

106,000

108,000

110,000

6/28 6/30 7/2 7/6 7/8 7/12 7/14 7/16

(`000)

Openinterest Nifty

View

 We had a gap down opening as suggested by the

global peers. The benchmark index remained under

pressure and ever attempt of pull back was being sold

into. Finally, we concluded the day session with the cut

of more than a percent.

 FIIs were net sellers in the cash segment to the tune of

Rs. 2199 crores. In index futures front, they sold worth

Rs 2169 crores with fall in open interest indicating long

unwinding in yesterday’s session.

 Considering the previous weeks development, things

looked set to see 16000 plus levels but nervousness

observed in the global market on Monday spoiled the

overall mood. We saw decent long unwinding in Nifty

and banking index added decent shorts. In options

front, good amount of writing as seen in 15800-16000

call strikes. On the flip side, put writers of 15800-15900

ran for shelter and OTM call strikes 15500 and 15600

added some fresh positions. At current juncture, Nifty

has concluded the session around the important

support zone of 15700-15750; low implied and PCR-OI

below 1 hints possibility of recovery in the coming

sessions. Thus, we would strickly avoid any bearish bets

and would wait for follow-up action before initiating

any aggressive direction bets.

Comments

 The Nifty futures open interest has decreased by 2.29%.

Bank Nifty futures open interest has increased by 6.01%

as market closed at 15752.40 levels.

 The Nifty July future closed with a premium of 0.00

point against a premium of 12.60 point in last trading

session. The August series closed at a premium of 51.65

point.

 The INDIA VIX increased from 11.70 to 12.68. At the

same time, the PCR-OI of Nifty decreased from 1.24 to

0.89.

 Few of the liquid counters where we have seen high cost

of carry are NMDC, SAIL, IDEA, ACC, AND RAMCOCEM.

OI Gainers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

NATIONALUM 102153000 55.96 88.95 1.02

HDFCBANK 29062000 13.22 1471.00 -3.43

RBLBANK 33495000 9.75 209.30 -2.63

L&TFH 76210960 7.69 90.55 -4.63

SRF 434625 7.55 7844.05 0.97

TVSMOTOR 6029800 6.82 601.40 -1.99

M&MFIN 41184000 6.43 156.85 -3.38

IOC 61750000 5.66 105.95 0.00

OI Losers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

GODREJPROP 2101450 -8.98 1568.95 -0.45

IDEA 637770000 -7.84 9.15 -3.16

PFC 35972400 -6.94 127.10 -0.55

MINDTREE 2568000 -6.69 2729.80 -0.27

WIPRO 33396800 -6.63 573.80 -0.46

CUMMINSIND 2820600 -5.58 861.60 0.51

INDIGO 2320000 -5.19 1765.90 -2.38

HINDALCO 29611950 -5.11 396.95 -1.96

Put-Call Ratio

SCRIP PCR-OI PCR-VOL

NIFTY 0.89 0.86

BANKNIFTY 0.63 0.92

RELIANCE 0.43 0.35

ICICIBANK 0.60 0.80

INFY 0.45 0.56

Historical Volatility

SCRIP HV

HDFCBANK 36.29

HDFCAMC 39.92

INDUSTOWER 57.30

L&TFH 58.42

HDFCLIFE 40.24

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Technical & Derivatives Report

July 20, 2021

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

Nifty Spot = 15752.40

FII Statistics for July 19, 2021

Detail Buy

Net Contracts

Open Interest

Sell

Value

(in Cr.)

Change

INDEX

FUTURES

3648.24 5717.21 (2068.97) 131795 10704.59 (8.63)

INDEX

OPTIONS

400684.56 403360.61 (2676.05) 1231377 106845.25 12.69

STOCK

FUTURES

15459.44 16267.25 (807.81) 1407255 111568.90 (0.27)

STOCK

OPTIONS

19142.55 19519.01 (376.46) 313434 25427.19 4.81

Total 438934.79

444864.08

(5929.29) 3083861

254545.93

4.64

Turnover on July 19, 2021

Instru

ment

No. of

Contracts

Turnover

( in Cr. )

Change

(%)

Index

Futures

3,63,528 30320.92 92.29

Index

Options

4,25,73,028 41,26,949.42

62.65

Stock

Futures

7,70,972 63702.32 14.35

Stock

Options

25,55,996 2,15,576.10 -0.94

Total 4,62,63,524 44,36,548.76

56.97

Bull-Call Spreads

Action Strike Price Risk Reward BEP

Buy 15800 99.90

39.10 60.90 15839.10

Sell 15900 60.80

Buy 15800 99.90

64.15 135.85 15864.15

Sell 16000 35.75

Buy 15900 60.80

25.05 74.95 15925.05

Sell 16000 35.75

Bear-Put Spreads

Action Strike Price Risk Reward BEP

Buy 15700 101.80

32.95 67.05 15667.05

Sell 15600 68.85

Buy 15700 101.80

54.00 146.00 15646.00

Sell 15500 47.80

Buy 15600 68.85

21.05 78.95 15578.95

Sell 15500 47.80

Nifty Put-Call Analysis

500,000

1000,000

1500,000

2000,000

2500,000

3000,000

3500,000

15200 15300 15400 15500 15600 15700 15800 15900 16000 16100 16200 16300 16400 16500

Call Put

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Technical & Derivatives Report

July 20, 2021

Daily

Pivot Levels for Nifty Constituents

Scrips

PIVOT

ADANIPORTS

644

659

676

691

708

ASIANPAINT 2,948 2,965

2,982

2,999

3,017

AXISBANK

740

748

757

765

774

BAJAJ-AUTO 3,835 3,859

3,899

3,923

3,963

BAJFINANCE 5,836 5,926

6,024

6,114

6,212

BAJAJFINSV 12,551

12,636

12,728

12,813

12,905

BPCL

439

446

453

460

467

BHARTIARTL

522

530

537

546

553

BRITANNIA 3,413 3,432

3,445

3,463

3,476

CIPLA

964

969

976

981

989

COALINDIA

143

144

145

146

147

DIVISLAB 4,695 4,751

4,792

4,848

4,889

DRREDDY 5,353 5,386

5,415

5,449

5,478

EICHERMOT 2,543 2,561

2,589

2,608

2,636

GRASIM 1,529 1,544

1,560

1,575

1,591

HCLTECH

978

989

1,004

1,015

1,029

HDFCBANK 1,452 1,462

1,475

1,485

1,498

HDFCLIFE

665

672

684

691

704

HDFC 2,457 2,469

2,483

2,496

2,510

HEROMOTOCO 2,860 2,873

2,884

2,898

2,908

HINDALCO

391

394

399

403

408

HINDUNILVR 2,390 2,399

2,408

2,418

2,427

ICICIBANK

641

649

653

660

664

IOC

104

105

106

108

109

INDUSINDBK

990

1,003

1,019

1,032

1,048

INFY 1,529 1,535

1,544

1,551

1,559

ITC

205

206

208

209

211

JSW STEEL

683

691

702

709

720

KOTAKBANK 1,697 1,710

1,725

1,738

1,753

LT 1,574 1,592

1,616

1,633

1,657

M&M

765

770

776

781

786

MARUTI 7,059 7,112

7,205

7,258

7,350

NESTLEIND 17,421

17,587

17,716

17,882

18,011

NTPC

117

119

121

123

124

ONGC

113

114

115

116

117

POWERGRID

230

232

233

235

236

RELIANCE 2,073 2,086

2,105

2,118

2,137

SBILIFE 1,016 1,027

1,038

1,050

1,061

SHREECEM 27,683

27,840

27,974

28,131

28,265

SBIN

415

421

425

432

436

SUNPHARMA

673

681

686

694

700

TCS 3,163 3,174

3,187

3,198

3,211

TATACONSUM

753

759

765

771

776

TATAMOTORS

304

306

308

311

313

TATASTEEL 1,233 1,250

1,270

1,287

1,308

TECHM 1,073 1,083

1,097

1,108

1,121

TITAN 1,654 1,667

1,688

1,701

1,723

ULTRACEMCO 7,174 7,243

7,314

7,383

7,454

UPL

808

821

835

847

862

WIPRO

562

568

576

582

590

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Technical & Derivatives Report

July 20, 2021

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

For Technical Queries E-mail: technicalrese[email protected]

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