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Technical &

Derivatives Report

October 20, 2020

Nifty

Bank Out

look

(

24267

)

The banking index started the week with a good bump up in

tandem with the benchmark. During the initial hours, the lead got

extended as some of the heavyweight banking stocks attracted

tremendous buying interest. This resulted in a strong breakout

beyond the 24000 mark. At the mid session, the BANKNIFTY

dipped a bit; but the overall undercurrent is so strong, the small

decline immediately got bought into to eventually end the day

with sizable gains over three percent.

Since the last 3-4 days we are observing an interesting

development, where the recent leaders like IT and RIL have taken

a back step and financial space has taken a charge. Earlier

banking stocks were not letting Nifty go higher; but now if Nifty

has to surpass the 12000 mark, the BANKNIFTY will dominate the

move. Yesterday’s close above 24000 is a sign of strength and

hence, any decline towards 24100 – 23900 should now be

construed as a buying opportunity. On the higher side, we expect

it to continue its march towards 24500 – 24700 levels.

Key Levels

Support 1 – 24100 Resistance 1 – 24500

Support 2 – 23900 Resistance 2 – 24700

Exhibit 1: Nifty Daily Chart

nsex

(

40432)

/ Nifty

(

11873

)

The Asian markets were trading with a positive bias yesterday

morning which led to an optimistic sentiment an hence, our

markets too started the week with a gap up. Nifty then

consolidated within a range throughout the day and ended with

gains of almost a percent at 11873.

We had a good start for the week led by the Banking space which

too started the day on a positive note. During the day, the Banking

index led the momentum and posted gains of over 3 percent while

the recent outperforming IT sector, Auto stocks and the index

heavyweight RIL took a backseat. Some other sectors such as

Metals and FMCG too traded with a positive bias and hence, it

could be said that it was a day with a sector specific momentum.

Post the hiccup seen in the last week, the Nifty is back to the safer

zone and the immediate support base has now shifted higher at

11780-11820. On the higher side, the resistance is seen around the

12000 mark and once this is taken out, our markets would again

gear for the next leg of the rally. Traders are advised to trade with a

positive bias and look for such sectors which are in momentum and

are providing good trading opportunities.

.Key Levels

Support 1 – 11820 Resistance 1 – 11950

Support 2 – 11780 Resistance2 – 12000

Exhibit 2: Nifty Bank Daily Chart

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Technical & Derivatives Report

October 20, 2020

Nifty Vs OI

10800

11000

11200

11400

11600

11800

12000

12200

2,000

4,000

6,000

8,000

10,000

12,000

14,000

9/30 10/5 10/7 10/9 10/13 10/15

(`000)

Openinterest Nifty

Vie



We started of the week with an upside gap.During the

day, index corrected towards 11800 but fresh demard

was seen around this zone. Nifty then consolidated to

eventually conclude the day tad above 11850.



FIIs were net buyers in the cash segment to the tune of

Rs. 1657 crores. In index future segment, they bought

worth Rs. 141 crores with rise in open interest,

indicating some long formation in yesterday’s session.



Last weeks correction was mainly due to unwinding. In

yesterday’s recovery, we saw addition of fresh longs

especially in BankNifty. For the entire October series,

we witnessed strong outperformace by the banking

index and yesterday we finally saw it surpassing the

hurdle around 24000. Considring the options activity,

we may soon see extention of yesterday’s rally towards

24500-24700. In case of Nifty, good amount of writing

was seen in 11800 put strikes, which is a positive

development. Hence, any declines towards 11800 mark

shall be an opportunity to add longs.

mme



The Nifty futures open interest has increased by 0.27%

Bank Nifty futures open interest has increased by 4.03%

as market closed at 11873.05 levels.



The Nifty October future closed with a premium of 16.35

point against a premium of 2.70 point in last trading

session. The November series closed at a premium of

40.90 point.



The INDIA VIX has increased from 21.64 to 21.82.

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

1.31 to 1.35.



Few of the liquid counters where we have seen high

cost of carry are IBULHSGFIN, PNB, NTPC, HAVELLS,

HDFCLIFE and BANKBARODA.

OI Gainers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

MINDTREE 1810400 37.90 1341.75 0.49

AMBUJACEM 23256000 28.32 247.60 -0.24

COLPAL 2731400 23.40 1476.70 2.82

ACC 2723000 16.67 1562.65 0.16

M&MFIN 18043116 16.11 129.95 3.61

UPL 15440100 14.29 463.45 -0.67

FEDERALBNK 88850500 12.16 56.20 7.63

L&TFH 29586800 11.19 63.30 3.42

OI Losers

SCRIP OI

CHG. (%)

PRICE

CHG. (%)

GODREJPROP 826800 -13.59 900.95 3.83

IOC 54970800 -8.64 76.80 3.49

COFORGE 449250 -7.85 2543.55 -0.42

TATAMOTORS 75656100 -6.36 128.25 0.51

INFY 36397200 -5.65 1125.90 0.18

SRF 602500 -4.55 4450.60 -0.10

COALINDIA 49284000 -3.96 114.70 2.81

JUBLFOOD 1792000 -3.91 2248.00 -3.06

Put-Call Ratio

SCRIP PCR-OI PCR-VOL

NIFTY 1.35 0.91

BANKNIFTY 1.15 0.76

RELIANCE 0.47 0.42

ICICIBANK 0.86 0.49

INFY 0.37 0.41

Historical Volatility

SCRIP HV

UPL 58.86

MINDTREE 60.59

JSWSTEEL 58.01

CUMMINSIND 41.34

VOLTAS 43.69

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Technical & Derivatives Report

October 20, 2020

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

Nifty Spot =

11873.05

FII Statistics for October 19, 2020

Detail Buy

Net Contracts

Open Interest

Sell

Value

(in Cr.)

Change

INDEX

FUTURES

3729.54 3588.72 140.82

142472 11575.76 1.70

INDEX

OPTIONS

198110.28 198145.12 (34.84) 950458 77341.24 5.59

STOCK

FUTURES

14712.14 15357.06 (644.92) 1125585 80540.53 0.86

STOCK

OPTIONS

6833.19 6874.34 (41.15) 106269 8345.96 2.25

Total 223385.15

223965.24

(580.09) 2324784

177803.49

2.86

Turnover on October 19, 2020

Instrument

No. of

Contracts

Turnover

( in Cr. )

Change

(%)

Index Futures

4,74,726 32729.19 -24.03

Index Options

1,75,66,909 12,54,660.23 -77.59

Stock Futures

7,23,284 55917.39 -10.06

Stock Options

12,46,592 1,05,193.16 -12.72

Total 2,00,11,511 14,48,499.97 -75.13

Bull-Call Spreads

Action Strike Price Risk Reward BEP

Buy 11900 132.95

47.20 52.80 11947.20

Sell 12000 85.75

Buy 11900 132.95

82.50 117.50 11982.50

Sell 12100 50.45

Buy 12000 85.75

35.30 64.70 12035.30

Sell 12100 50.45

Bear-Put Spreads

Action Strike Price Risk Reward BEP

Buy 11900 143.85

39.45 60.55 11860.55

Sell 11800 104.40

Buy 11900 143.85

68.25 131.75 11831.75

Sell 11700 75.60

Buy 11800 104.40

28.80 71.20 11771.20

Sell 11700 75.60

Nifty Put-Call Analysis

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Technical & Derivatives Report

October 20, 2020

ily

Pivot Level

s for

Nifty Constituents

Scrips

PIVOT

ADANIPORTS

341

344

348

352

356

ASIANPAINT 2,045 2,058

2,069

2,081

2,092

AXISBANK

469

481

488

500

508

BAJAJ-AUTO 2,906 2,943

3,007

3,045

3,109

BAJFINANCE 3,155 3,211

3,253

3,309

3,351

BAJAJFINSV 5,869 5,925

5,981

6,038

6,094

BPCL

338

343

345

349

352

BHARTIARTL

388

393

399

404

409

BRITANNIA 3,714 3,743

3,769

3,798

3,824

CIPLA

748

756

770

778

792

COALINDIA

110

112

114

116

118

DIVISLAB 2,980 3,037

3,142

3,199

3,304

DRREDDY 4,932 4,995

5,105

5,168

5,278

EICHERMOT 2,126 2,162

2,221

2,257

2,316

GAIL

GRASIM

752

762

772

783

793

HCLTECH

818

831

846

860

875

HDFCBANK 1,168 1,186

1,210

1,228

1,253

HDFCLIFE

560

565

570

575

580

HDFC 1,961 1,996

2,018

2,053

2,075

HEROMOTOCO 3,151 3,200

3,279

3,328

3,407

HINDALCO

175

179

181

185

188

HINDUNILVR 2,139 2,158

2,172

2,191

2,205

ICICIBANK

395

406

412

424

430

IOC

INDUSINDBK

597

612

621

636

646

INFY 1,103 1,114

1,127

1,138

1,150

ITC

165

167

168

169

171

JSW STEEL

303

308

313

319

324

KOTAKBANK 1,317 1,347

1,363

1,393

1,410

876

889

898

911

920

M&M

583

590

602

610

622

MARUTI 6,731 6,791

6,886

6,946

7,041

NESTLEIND 15,146

15,619

15,899

16,372

16,652

NTPC

ONGC

POWERGRID

158

159

161

162

164

RELIANCE 2,113 2,145

2,187

2,218

2,260

SBILIFE

787

793

801

806

814

SHREECEM 20,797

20,950

21,175

21,327

21,553

SBIN

193

199

202

207

210

SUNPHARMA

475

479

485

489

495

TCS 2,663 2,687

2,731

2,755

2,798

TATAMOTORS

126

127

129

130

131

TATASTEEL

388

392

396

400

404

TECHM

807

816

826

835

845

TITAN 1,204 1,216

1,226

1,238

1,247

ULTRACEMCO 4,425 4,470

4,509

4,554

4,594

UPL

435

449

462

476

489

WIPRO

335

339

343

347

351

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Technical & Derivatives Report

October 20, 2020

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.d[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